All Forum Posts by: William S.

@Austin Farsai

I've always bought in my own name with an $1 million umbrella insurance policy. I never had partners as well. Your mortgage rates are better this way too. I never acquired so many homes to need an llc (commercial loan).

@Clarence Patrick

You are always going to have competition. There is no "diamond in the rough." I would explore areas on your city that are not inflated with rental homes. My best properties were in mainly home owner neighborhoods.

@Matthew Costello

If I did it all over again my first deal would be a duplex house hack with the following criteria.

1. Desirable part of town (restaurants, bars, cute neighborhood, etc)

2. Cosmetic renovation. Just enough to bring up rents but not get over your head

3. Good tenant pool. This comes from #1.

It may not look great on the spreadsheet in the beginning, but the debt pay down that your tenant will do is key. Also being in a good area will have better appreciation. Why? If you decide to sell you’ll have a good margin between purchase price and debt. Also you can always refinance to pull cash out to add value to the property.

@Lawrence Barnes

I have not done any partnerships. I’d seek out a professional on this.

@Matthew Costello

I purchased a turn key single family in a c-class neighborhood. Big mistake. I thought it’d be a good entry into the game. Back then I solely thought about cash flow and minimal work. Wrong! You need to think what works best for your personality and lifestyle, also what your ideal tenant is.

Another tip... I recommend having a service agreement with a local hvac/plumbing company. It prevents problems down the road but is also an extra set of eyes for you. These are 2-3 visits a year. It also demonstrates that your a taking care of the property and not a “slum lord.”

@Will Sifert

Documenting before tenant moves in is key. The biggest issue is actually collecting for damages. I always get my deposit back for this, but often it can exceed the deposit amount (1 months rent). I suggest increasing the deposit amount. Don’t forget other things that aren’t as visual. Verify the plumbing, mechanicals were working correctly before and after the tenant.

@Will Sifert

I have seen this experience for housing on the market, especially when covid hit. I would suggest the home being staged for this. They need to imagine what the home could be (bedroom size with beds, etc). In the past I've used photos and recorded videos of a walk through. I think it is an excellent way to show the property. In addition, it shows that you are a professional.

@Taylor Gant

If I am house hacking a duplex. That was my favorite by far. I bought a nice duplex in a very desirable area near bars, restaurants, and a medical campus. My tenants were nurses, or med students. It was smooth... When you combine a hot part of town, solid pool of tenant, and you're onsite it can't be beat. You can invest in renovations for your rental and your own home at the same time as well.

@Bruce P. Bellott

Have you tried to get pre-approved yet? Find a local bank and see what they can do for you. Do you have family members who can help you out with the loan (co-sign)? 

@Josh Fleenor

I think this starts with the property itself. Like I mentioned above, having a property in a desirable area that looks well kept is key. In regards to the posting, make it look as professional as possible. High quality photos, good description, etc. Keep in mind who is your ideal tenant. What do they want?

@Will Sifert

I’ve began online marketing “coming soon” before someone moves out, however not showing the property in person while the current tenant is there. You are correct. Loss of 1-2 months rent plus rent ready costs. The turn around time is typically quick 1-2 weeks. I haven’t had a problem getting a unit rented. 

If you insist on investing out of state you must set extensive expectations upfront with the PM. For example, tenant criteria, approvals, costs, etc. Expect things to go wrong and prepare for the worst. Eventually something bad will happen. If you are prepared mentally and have procedures in place you’ll handle it better.