All Forum Posts by: Walter Key

Start with the "Education" tab on BP and reading over the various forums. As you start to get more information you'll have a better idea of a niche you may want to focus on. Then devote some specific attention to learning everything you can about it.

@Shavonne Justin Your best bet is to talk a someone with local MLS access to run you some rental comps or talk to a couple local property managers in the area. With the information provided and without seeing the property, any price posted here would be just a close guess.

Now, if you only need a close estimate right now, you can search your local Real Estate websites (Zillow, Redfin, etc) for other homes for rent within a close radius of yours and determine the approximate rental value on your own. 

Hope that helps. 

@Sterling Anderson Not to hijack the thread but would you mind sending Donnie Schnekenberger's information my way as well? Thanks much.

9 times out of 10 a bedroom is going to bring more bang for your buck than a dining room. Can you reconfigure a wall to adjust the awkwardness of the bedroom?

Welcome aboard from Jacksonville, FL!

Here are some things I asked mine when I was shopping for the right manager...

How long have you been managing properties? 

How many properties are you currently managing?

Do you own properties yourself?

How large is your staff? ( this relates to how many properties they're managing...are they appropriately staffed to be able to maintain a high level of customer service)

What is your current management fee?

What kind of discount will you offer me if I put multiple properties under management with you?

How often do you physically view the properties you manage? Drive-by and inside check-up.

Do you offer tenants an online payment option?

Do you have an online owner portal?

How would you handle this scenario...(pick a scenario; busted pipe, late rent, late night maintenance call, etc)

Who do you use for maintenance? (They should have multiple people that specialize and are licensed and bonded for the work they do. You don't want "we have a great handy man" kind of answers here). Get contact info for those people they list.

What is your current turn-over rate? You want to gauge how quickly they're filling vacancies since that can really drain your cash flow. However, take their answer with a grain of salt and compare it to the other companies you interview.

How do you feel about me providing my own preferred maintenance company? (I keep home warranties on all my rentals and have written the management contracts so the PM will go through my home warranty for repairs and I allow them to pay my deductible straight to the warranty company then take it out of my monthly income. This gives Me peace of mind and reduces my CAPEX).

What are the main ways you recommend to your clients to maximize their rental income potential?

Since there are numerous PMs in this market, what make your service better than theirs? What sets you apart from your competition?

There may be more questions that you think of as the conversation unfolds but hopefully this has given you some food for thought. 

I interviewed 3-4 different companies in NE beforemi decided on the one I chose.

@Account Closed This is a good problem to have! LOL. You've got a great amount of working capital and multiple options. Traditionally a 4-plex is still considered residential but I'm sure you could find a commercial lender if that's the way you want to go. How much would a 6-10 unit apartment cost in your area? What's are ultimate goal? Do you want to build up more capital for larger deals in the future or are you more interested in building up your passive income through solid cash flow? Once you can firmly answer that question for yourself, I think you'll have a better idea of the way ahead. Sounds like 2016 is going to be a great year for you!

Awesome success story. Congrats and best of luck in 2016!

@Adam L. What's your current interest rate and how firm is your rental projection? I can't add much to what's already been stated, not a great deal for you. However, depending on the rate when you bought and if there's anything you may be able to do with the house to increase the rental value a tad, MAYBE you could REFI and at least get yourself to a break even point. Also, you're quoting a "standard" 10% management fee. Ask around on this. Call all the property managers in your area and ask if they'll manage your property for less. Even 8% instead of 10% saves you another $27/MO.

Breaking even certainly isn't the ideal investment strategy, no doubt. But if selling puts you at a financial loss, maybe holding on to it and breaking even (plus taxes the tax deduction and letting appreciation work it's magic) you may come out ahead in the long run. 

Best of luck to you on this. I've been exactly where you're at now. It sucks.

- Close THREE new deals (Rehab/Flip or BRRRR).

- Teach at least THREE people what I've learned so far.

- Learn something new from at least THREE people.

- Identify THREE portfolio lenders in my areas of operation.