All Forum Posts by: Tyler Condon

I would make it to the point on the first attempt. You get one first impression so make sure he knows you want to purchase. Highly unlikely he responds on the first go so you need to have a  plan to get the full effect

Ask them if they have licensing. 

Other red flags:

Give them a situation and ask them how they would handle it. 

I.e. if a lightbulb is dead, what would they do? Do they send a handyman that'll charge you $50 to change the lightbulb or would they ask the tenant to just change it? the latter is the better response. 

Ask them how they receive and manage rent payments, how do they track expenses for your property? If it's via excel... that's a red flag. They should have an online property management software portal for you to log into and check all the financials at any time. 

Hope this helps!

We've seen too many owners spend more time worrying about properly screening tenant, than screening PMCs!

Currently, you can break PMCs down into 3 categories:

1) Small mom & pop PMCs: 
Pros - one call for everything, very hands-on
Cons - usually very unorganized, which leads to mistakes, if they are sick you have no one to get ahold of

2) Medium sized PMCs
Pros - organized, several backup points of contact, overall better service
Cons - things may take longer as more hands involved, stricter procedures can be frustrating

3) Large PMCs
Pros - more data analysis for better service, more predictable services
Cons - even more hands involved, unique challenges often ignored (no process to handle them)

Red flags:
- Short agreement that leaves a lot open to interpretation, which usually means to their benefit
- Not a lot of details shared about HOW they will execute their services, so no accountability
- Tell you not to worry and trust them, when they haven't earned your trust yet
- Don't have a website or owner portal
- Aren't properly licensed

Your biggest challenge will be screening to find a good one!

@Tyler Condon Hi neighbor! I am an investor, CPA and Realtor in Temecula. My advice is, like anything, shop around and see who is the best fit. It's not rocket science, but you should find someone who specializes in real estate. I've seen so many mistakes from generalist CPAs. 

Also, the location of your CPA isn't as crucial as their experience with real estate. Many CPAs on this forum have clients and properties across the U.S.

@Tyler Condon

Always listen to your gut. personally i wouldnt do this deal at 43% DTI with a 2/1 buy down with hopes of things imrpoving in the new 2 yrs.Always hope for the best and plan for the worst.In this case you are not even planning for the worst . Do you have a sizeable amount of reserves.Things break ,ppty needs maintenance..taxes n insurences always goes up .If you are not cash flowing now how do you thing you will cash flow down the road? My mentor taught me this "A NO DEAL IS BETTER THAN A BAD DEAL"