All Forum Posts by: Tyler Smith

@Allan Smith yeah that’s definitely a good idea thank you!

I purchased my first property back in January and I'm getting ready to purchase my 2nd. I live in Seattle so I'm starting out with the turnkey route. All properties have brand new HVAC system, hot water and roof so my expected CapEx in the near future is minimal.

Do you guys have a different account for each property, one for reserves and CapEx? It seems excessive to me to have multiple accounts for each property. I was thinking about having 1 account for each property that I hold roughly $10k in to account for reserves, CapEx, vacancy ect. and then adding to the account as I get closer to big ticket items needing to be replaced. The properties I'm looking at are in the $80k-$110k SFR.

Is this reasonable? Too conservative or not enough? I would love to hear how all you RE pros set up your accounts!

My real estate journey is just beginning but I haven't stopped looking for properties. I just plan on being more selective as well as raising my reserve amount to hopefully weather a larger storm. This is for the long term right? Housing is also a necessity and I personally like cash flow rather than appreciation so I'm not too worried

@Bjorn Ahlblad That is the ideal situation. Did you contact them in the event of a missed rent payment?

@Jason H. I am just starting out with just the 1 property. In a perfect world I would like to focus on growing my portfolio rather than dealing with tenants as I have no problem paying a PM. As @Peter Tverdov said I'm trying to find the fine line between micro managing and being well informed. It sounds like this would be a case by case basis depending on the quality of a property manager, with some difficult times right now I don't want to bombard my PM with unnecessary questions as I hope they would be able to handle a tenant who was unable to pay rent. 

Thank you both for your input

1) Do you check in with your PM monthly/quarterly/annually or just whenever there is an issue?

2) If you receive the monthly statement and it shows the tenant has not paid rent do you immediately get on the phone and contact your PM or do you hang back and try to let them do their job?

Bought my first turnkey property in January, tenant was unable to pay in April, May is currently up in the air

@Clayton Mobley I appreciate the input. I've heard a lot of different opinions on this topic, so would you recommend flying out to take a look at the property as well as meeting the PM maybe the seller/company the first time or two until you can create a solid relationship with them?

@Corby Goade I have heard a lot about Boise! I have no moral obligation to the midwest or any cities in particular, I'm just looking for a few cities that fix my plan and budget

Thank you everybody for your input! It is much appreciated. I'm definitely going to look more into turnkeys here in the near future.

And @Larry Fried Great article!