All Forum Posts by: Rick Bassett

@Mike Wiesenhart after the numbers make sense (it pencils out), and before we place an offer.

@Patricia C. If you’re looking for good cash flow you might want to consider properties in some of our cities as there are a lot of housing voucher clients looking for housing and the some of the programs pay reasonably well. Take a look at New Haven and Bridgeport. Your target purchase price is probably too low. you’re probably looking at around $125 to 140,000 per door. Other areas to look at are Bristol in Torrington.

@Ed Lopez 

Many good points in this thread.

A few things I was thinking about when reading your posts:

1) At $500/month in rent with annual turns it is going to be nearly impossible for the cash-flow math to ever work. Maybe look for a different type of tenant that doesn't leave every year or sell the place if it isn't meeting your other investment objectives.

2) As PM's we always seek prior authorization for expensive turns or capital projects, even though the estimates given to our owner-clients are often ball-park numbers. It keeps everyone on the same page.

3) The downside of using a PM who has their own maintenance company is that you might end up with larger bills as it is a profit center for them. The appearance of these conflicts is the exact reason we have chosen not to set up a separate maintenance company.

4) As others have said some of these might be security deposit issues.

Best,

Rick

@Mike H. I started investing in real estate back in the late 90s and only bought a few until about 2009.

Most of the deals from the early 2000s until about 2008 just did not pencil out and while I was anxious to build a portfolio. The numbers simply didn’t work so I stayed disciplined and resisted buying bad deals while it seemed like everyone was jumping in feet first.

Today’s climate feels like that.

Sure there are some deals out there that pencil out but there are so many other investors competing for the same deals now.

I am optimistic that things will turn around, even if it takes several years, as real estate tends to do that.

@Alex Zweydoff - yes, we have converted about a dozen STR's and MTR's to long-term rentals under our management within the past 12 to 18 months. The demand in our area has been dropping off for quite some time.

@Engelo Rumora we would thank them for the opportunity and then elaborate the terms in which we would do business with them, while pretty much ignoring everything that they’ve asked for.

@Engelo Rumora – we would thank them for the opportunity and then elaborate the terms in which we would do business with them, while pretty much ignoring everything that they’ve asked for.

Much to do about nothing as President Biden is now a lame duck, and nothing new is going to happen for the rest of his term.

@Amy Lin - If it were me I would have an experienced attorney start the eviction process immediately.

They are probably going to hang on as long as they can rent free as they have the closing proceeds.

They might care about their credit if they do plan on buying another place, so you might have some leverage there.

@Jesse Santos whenever a prospective tenant wants to negotiate I tell them: “sure we’re always willing to accept more”, and then I don’t say another word.

As a rule of thumb, if you enter into the negotiating game with a prospective tenant early on, you will be living with that their entire tenancy on all their maintenance requests, late payments, pet requests, etc.

They have already shown you who they are as you thought the initial negotiations were over and then they brought you to round two. Remember, this is a 24 round (month) adventure.

By the way – was 24 months your idea or theirs?