All Forum Posts by: Brian Wolfe

About 6hrs to Phoenix and a long ways to Texas.  If I go to Texas it is usually part of a trip for education activities as a part of a real estate mentoring group out there, and I'll fly out.  But there really is nothing you can't do by phone if you've got a trustworthy competent group on the ground locally that you can turn to.  If you're renting to lower middle class and up, that also helps with minimizing issues and management time.

I have 9 SFRs in 2 different states, AZ and TX, and I live in California.  I also have a 4plex in California that is professionally managed, as it is in a tougher neighborhood to manage.  But we manage the AZ and TX properties ourselves - we have a really good leasing agent and leasing criteria, and focus on screening tenant, so generally we have great tenants, and they are responsive, prompt payers of rent, and let us know immediately if there is an issue at the property.  We've worked and developed relationships with really good contractors in both areas, and for larger projects over $500 get at least 2 bids, usually 3. 

Unless you plan to do the work yourself, there really to me is no material downside to managing the properties yourself.  I know there are good property managers out there (we have one in San Diego), but the cost of property management really eats away the majority of your cash flow in the long-term, and ultimately no one is going to be as focused on your property as you are, even if you are long distance.  I visit the properties once a year, but also talk to contractors that go in and do work about how things are looking periodically.  Hope this helps.

My general rule is no evictions, period. Though I know some folks who do allow for people with evictions, but they charge double or triple deposit, and generally that is acceptable to the tenant as a cost of doing business.

hi David, we are mostly in converse, though have a few in other parts of San Antonio.  We have a great leasing agent that we work with to make sure we are in good rental areas before we commit to a particular property

I like Randy's criteria, though I'm in San Diego and buy in San Antonio .  If you screen tenants well, it should be very low maintenance for you.  We buy houses between 90k and 120k, w rents between 900 and 1200.  Seems to be a good demographic.  I am a lifestyles unlimited member that is Texas focused and Houston based.  I would check out their case study and 2 day course, very worth the money to get you oriented

Great call Gino!  I am looking towards something similar, in a place with more steady prices and cash flow.  How did u decide on Jacksonville? 

For my 2 cents, I own SFRs and a 4-plex, and I see multi-family as a great way to go, though it seems there are factors coming online that might make it challenging in the next few years: peaking rental rates (historically high as I understand versus income), lower cap rates, significantly increased construction for apartments in most cities where I am looking (which will eventually trickle down in impacting rents from A to B to C class), and the nature of commercial real estate loans (relatively short term, eventually adjustable, and it seems they can only go up in rate). 

I really like the multi-family model, but difficult to get in at this place in the cycle - just my opinion.

That's a great issue to have Tim!  I suppose it all depends on your philosophy and investing style, but Swanny's approach really resonates with me - realizing that equity gain in a tax deferred way through 1031 exchange and reinvesting in stable cash flowing properties in other states is the approach I'd seriously consider.    

Thanks a lot Michael for sharing! I am definitely going to take note of this and look at it more closely.  We have a few other properties we're looking to 1031, and would be open to this possibility. 

 Very much agree on a meet up / coffee.  I've been to a few REIAs in San Diego, some good, but would be great to have some focused conversation with like-minded investors that aren't selling...