All Forum Posts by: John D.

A young single man I took on as a tenant 8 months ago contacted me a couple of days ago to report mold in a bathroom on a wall. He says it looks like the mold has always been there and it was just painted over before he moved in to hide it. I am doubtful of the claim for many reasons not relevant to my question below.

The tenant gave me the option of having a professional remediate the mold while he moved out temporarily. The other option was to break the lease and part ways. He has already claimed he's having headaches and a sore throat all the time. I have not seen the bathroom and do not care if he breaks the lease. I can rent it quickly again for more.

Immediately, upon him contacting me on this issue, I told him he could break the lease and move out. No problem.

My question/concern is regarding protecting myself against some future claims related to his health. Is there a form I can have him sign upon inspection of his move out that would provide this protection?

I believe my lease is pretty solid, extensive and is state-specific to Florida (I live in Georgia). I do not know if this is an excuse to break the lease for financial reasons and do not care to know. I'm only concerned with future claims after the lease is terminated.

What would you do to protect yourself?

What about virtual assistants @Tyler Weaver? Any experience working with people on platforms like Fiverr.com for accounting, marketing, data mining, etc? I've heard these are great ways to get professional help and keep costs low at the same time but do I want someone across the country that I've never met in my books?

In the last few months, my daily work has all but gone virtual and has been a very successful and efficient change that is likely not to revert. As I'm beginning to develop my real estate team (agent/s, contractors, accountant, lender, etc.) should I limit myself to finding partners only in my immediate vicinity that I can meet with in person? Likewise, should I only have team members who are well versed in virtual meetings and online systems of organization and project plans? What are the pros and cons of each approach?

Does anyone have experience working with New Western Acquisitions?  What is your opinion of their process, people, integrity, anything?  I have an opportunity to work with them not related to buying their properties.

@Joe Sanada I think you're the first person to make the connection I was going after.  What's the process to achieve long-term success in RE and not be a flash in the pan?

Just doing is not a long-term strategy.  Just doing does not align with replacing my income long-term.  Just doing could get someone in a worse financial jamb.  Just doing will make for some terrible wedding photos and kill your career before it even got out of the gate (your analogy).

I'm not dismissing all other opinions and analysis paralysis is a real thing.  "Drinking the Kool-Aide" to just get out there and do is what some people need and how they operate in all areas of their life.

Bottom line, I believe these types of messages need to be balanced with honest information first and then followed up with the cheerleading to go try it.

"Make a plan. Work the plan."  That should be the call to action to produce better long-term results.

Thank you BP friends!  You have given me great insight and helped me further refine my strategies.

Good insight Jonathan.  As a short-term rental owner in this area for 15 years there's a couple of additional points I think anyone reading this would want to know.

Location - I have found that if your property has great photos and a very well-written description of its proximity to the beach, potential renters have more trust and book with you over a listing that just says "beach view".  Guests want to know exactly what they are getting.  We often host families from the midwest and upper midwest and that's a long drive to not be sure of exactly what you've rented.  Over time, guests will leave reviews confirming your description and this will further your credibility and trust.  All that just to say, don't think non-beach view properties are dogs.  We get $1350 wk. for a 2/2 in peak season for 1st tier.

Taxes - Save yourself some headaches.  Pay for a service like Avalara to file your taxes.  The State of South Carolina is a nightmare to deal with on your own trying to stay compliant.  We let Airbnb pay our state tax and the Avalara takes care of the rest in local, hospitality and whatever SPLOST taxes they dream up.

Rental management - I have a strong opinion that you should not use an on-site or off-site rental management company.  Keep in mind that Myrtle Beach is a big destination for Bike Week (Spring and Fall), Youth sporting tournaments year round, golf and conventioneers.  Not to mention regular beach partiers.  These rental management companies will treat your property like a hotel and rent without discernment.  We switched to doing it ourselves with HomeAway and then 3 years ago switched to Airbnb.  We made a lot more money and had a lot fewer headaches and damages.  Find yourself a good local housekeeper, treat them well with the occasional bonus and they will be your eyes and ears.  Airbnb makes it too easy and I enjoy meeting the people.

The trick is to develop a process and stick to it.  Continually improve it to gain efficiencies and free up your time.  I bet I spend less than 10 minutes on every rental and we consistently rent 200 days a year.

Rental history - Unlike long-term rental cash flow, the history of a vacation property is not always translatable to how successful you will be with the property.  Remember that a lot of revenue is built on relationships with return renters and web sites like Airbnb where you build a reputation.  When you purchase a property, those benefits don't necessarily come with it.  You may be starting from ground zero to fill your rental calendar.

Sorry to hijack your post.  Hopefully my added comments will help potential owners in the post-purchase phase to be successful and buy more properties.  I know we plan to so I'll reach out to you @Jonathan Edmund when we get ready to buy again.

Over the last month I've been submerging myself in podcasts, forums and books on real estate investing.  I already own several properties but I just recently started to consider being more deliberate about making it a real business and part of my retirement strategy.

I hear it over and over again.  "Just get out there and start doing it (investing, flipping wholesaling, etc.)".  

I'm almost 50 and have been a part of several startups, some ecommerce sites and the owner of a marketing agency.  If there's one thing I have learned in my 30 year career it's that just getting out there and doing it is not a long-term strategy.

In simplest terms, it's those without some sort of plan and comprehension of the market they are entering fail.  Most of the time they just burn out from constant flailing about without progress.

Maybe I'm being an "old fart" but I've seen a lot of failures and I too have failed when my big plan was based on sheer optimism.

A final point.  I think you always have to remember the person on the other side of the deal.  Your inexperience and optimism could put their livelihood and investments at risk if you don't know what you're doing.

I would like to know what BP members think of my unpopular observations here.  My purpose is not to be a wet blanket on the cheering section but rather learn what other think about what makes for long-term slow burns versus a flash in the pan.

Thanks

I guess you've already found this page?

https://www.cobbtax.org/property/delinquent

Although there is a link to a page that says they will list the properties, they never have online.  It downloads a blank spreadsheet.  I think you will find them in the Marietta Daily Journal though.  They are published every Friday I believe.

You might try here as well. And search "cobb".

https://www.georgiapublicnotice.com

Good luck,

Johnny D.

This gets me going in the right direction.  All of these solutions answer my needs and provide solutions for problems I didn't know I had yet.  We're looking to pick up a few properties around certain Georgia universities and focus on student housing.  The apartment industry is robbing these kids and we think we can do better by offering single family condos at a better price with a focus on converting them to long-term tenants.  So being modern in our approach to tenant management and communication will be an upsell.  I greatly appreciate your responses and time gentlemen.

I'm old school and so are most of my tenants in 5 of my 6 properties but I want to start moving towards the future and quit walking to the mailbox.  What are the modern ways to accept rent payments?  Send tenants reminders of rent due?  Send statements of late rent?  

What else is possible in paving the way for future tenants and setting them up day one with these above features?

Drag me into the future...please.

Thanks in advance for your replies.

John D.