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All Forum Posts by: Mark Whittlesey

Mark Whittlesey has started 2 posts and replied 217 times.

Post: Self-managing rentals from out of state

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91

It's all about boots on the ground. I have self managed for years. These are SFRs so easier to rent and much more stable than apartments. I would not try to do this with apartments.

I have a realtor who does nothing but fill vacancies. She markets the property, screens the tenants and submits the application and lease and other paperwork for my approval.  Then she is out of the picture. Her track record is flawless. At this point, all of my tenants are hers except one. All have are now multi-year, no problem tenants.


I have excellent trades people who I KNOW will show up on time the 1st time called and fix the problem. A plumber (who is also a handyman who does light roofing, light electrical, paint and flooring). He does most of the work for my make readies. Most of the time I just tell the tenants to call Jon. He is VERY familiar with all the properties. I  have been using him for more than a decade. It's a VERY good relationship.

An HVAC person and an appliance re-seller. An attorney who does nothing but tenant-landlord law (eg evictions).

They don't come up often but when they do I dig around to find a licensed roofing contractor, licensed electrician and a landscaper, termite company.

In the past year, everything went automated. My tenants transfer the rent into the business checking. The mortgages are auto-debited on the 16th. Most of the tradespeople will take a credit card for repairs. Occasionally, I still have to mail out a check.

Post: Is market softening? How does your local market look?

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91

No. Not softening at all in any of the 4 markets I am in. Sales are down because there is no inventory. If there were more houses for sale, they would SELL. Still multiple offers, above list price. Many all cash.

Post: SBA EIDL Loans are ELIGIBLE for Rental Properties

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91
Originally posted by @Shefali Rai:

@Mark Whittlesey thats great! Which date did you apply on? 

Sorry. Just saw this. I initially applied April 3. 

Latest update is that my loans are ready for the next step (this happened Thursday night/Friday morning). I was "offered" 68K. I needed to create an account and accept the amount and terms (30 years, 3.75%, 12 months deferred on payments, payment of 330ish a month). You CAN accept/request less if you choose. My applications are now being processed. It sounded like they have not necessarily been approved yet. (On the form, there were also places to confirm your identity and how payment will be received- both of which I had already done).  Not sure how long till a decision will be made/funding will happen but it seems like the wheels are moving fairly slowly. 

Post: SBA EIDL Loans are ELIGIBLE for Rental Properties

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91

I received a 2K advance. Came yesterday. Direct Deposit.

Post: SBA EIDL Loans are ELIGIBLE for Rental Properties

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91

A little info. I applied for EIDL not PPP.

My loan application confirmation number started with a 3 (which I am assuming indicates) EIDL

Not 2 which I guess means PPP.

I was able to get through to the SBA today, got a live operator in under a minute.

She said that their "check status" portal was down and being worked (since the process- for PP I assume- had changed). When the PPP ran out of money. They wer trying to get it up today.

But since I had applied for EIDL I did not need to do anything. I did not need to re-apply. I was just waiting for a call back from one of their loan officers. That was sort of re-assuring- in that I dont need to do anything. But also sort of not since I cant do anything and Im not sure how much faith I have in ever getting contact from them

Post: SBA EIDL Loans are ELIGIBLE for Rental Properties

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91
Originally posted by @Natalie Kolodij:

A few quick notes....

You shouldn't be putting any thing for COGS- rentals don't have this. This only applies to businesses with inventories. 

The applications ask for lost rents- that's what relates to you. 

Also worth noting- no one has received this loan advance/grant yet. Contacts at the SBA are saying 2-3 more weeks. 

Also worth noting there's no guarantee you'll receive $10k as a non -repayment grant. The wording in the act notes the advance is "Up to $10,000". It is totally up to the bank how much they approve. 

Thank you for this INFO! Four absolute gold nuggets of info for landlords (of which there are clearly MANY) reading these forums right now.

Post: SBA EIDL Loans are ELIGIBLE for Rental Properties

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91

Im guessing the answer is going to be no... But does anyone have any idea what the time frame for these loans would be (even a guess on units.. such as days, weeks, months) would be ok.

Also, if we need to amend our application, is that at all possible?

TIA

Post: Coronavirus and late or no rent payments

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91
Originally posted by @Danny Grey:

I think the general public has a perception that rental property owners are largely a bunch of wealthy fat cats flush with cash who can weather any economic storm, and if landlords still demand rent at times like these it's only because they're greedy. 

They average person probably doesn't understand just how much rental property is leveraged, much of it highly so, and if rent isn't paid, debt on those properties isn't paid, and we simply a see a line of debt dominoes falling into the abyss. This isn't news to any of you, but talk to some renters and you'll see this is a fairly common sentiment.

Whatever the "solution" for all this is, it needs to involve help for all parties from tenants, to property owners, to the owners of debt on those properties.

As for what this does for the overall market, it doesn't seem like much yet. I've seen a FLOOD of new homes hit the market this past week, but not at reduced prices. It just looks like folks trying to sell before the inevitable dip. The dip will come though, eventually.

 I agree with this.. but it's also more complicated than that. You can be under-leveraged but still be at risk. Equity is NOT spendable. And the monthly payment is based on the original loan regardless of how much you have paid or how much the property has appreciated. I am talking about being equity rich and cash poor.

Post: Coronavirus and late or no rent payments

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91
Originally posted by @Alyssa Dyer:
Originally posted by @Mark Whittlesey:
Originally posted by @Alyssa Dyer:
Originally posted by @Arthur P.:

@Brian Boyd I am actively looking for out of state investment but having a hard time finding good information and everywhere I look seems overpriced. I’m in FL now and trying to learn the area. NY investments I’ve had for years now and provide a great return but I’m thing I have to change my expectations or wait a year or two. I think this is the beginning of the next recession.

Oklahoma might be worth a look. 60-80k purchase price, 8% cap rates and Forbes called us recession proof in the last downturn. Might be worth some exploration!  

The problem with Oklahoma are the property taxes and the hazard insurance. Both are CRAZY high. But if the deal makes sense even with those 2 costs factored in.... then yea.

Taxes are actually pretty low in Oklahoma! We're typically seeing 1% of the purchase price annually for property taxes. Maybe you're thinking of the taxes in Texas? Our insurance is higher than you may see in other markets. We're generally right around 1% of the purchase price annually for insurance as well, but if you drop below 80k it creeps up closer to 1.5% annually. We're generally getting 8% cap rates with those things factored in.

I am actually comparing them to AZ. Taxes are 3x in OK for a property with a FMV of 50% more than what I have in AZ. Hazard insurance is a little more than 3x what I pay in AZ. Im sure there are other states that have higher property taxes but they are not bargain in OK.

Post: Coronavirus and late or no rent payments

Mark WhittleseyPosted
  • Real Estate Investor
  • Encinitas, CA
  • Posts 225
  • Votes 91
Originally posted by @Jay Hinrichs:
Originally posted by @Stephen Keighery:

@Arthur P. Get them to file for unemployment ASAP

I dont think unemployment benefits will handle all the bills for most folks..

Correct but... Chuck Schumer is pushing what he calls "unemployment  on steroids". If enacted it would pay 100% of someone's salary for 4 months. Let's hope McConnell gets on that train.