All Forum Posts by: Zach Scheirer

Max Smith I don't even fly in when I purchase a new place. My sister lives there and rents a place from me. She can show properties, if needed, and I can knock a little off of her rent for the help. I handle everything else from Texas.

Thanks for joining the conversation @Scott Reed

Not necessarily a garbage disposal or dishwasher but I always include washer/dryer, fridge, stove/oven and maintain them for the tenant. I feel this brings high rents

Currently I am in the process of purchasing another one in West Peoria and had a vacant one for the last two and half months (OUCH!!!) so I have been setting up showings and answering potential tenant questions and processed 6 applications before finding a suitable tenant for that one. My sister showed that house around 15 - 20 times and I got inquiries from about 75 people. Buying a home takes time as you know also. In this situation I would say I spent probably 15-20 hours a week on the business. When things are going smoothly and no purchases are in process and no vacancies I would say I spend less than 5 hours a week. Myself and my sister handle all of this with the help of a couple contractors I use. My sister rents a house from me so sometimes I waive her rent for her help.

I have really picked up my buying of long term rental properties in the last 3 years. I am doing that because interest rates are low and I feel like even if I don't get a rock bottom price on it, I will be ok based on the low interest rate. When the interest rates go up I think I may be slowing down due to home prices having very little fluctuation in my market.

What is your strategy? Consistent buying regardless of rates ? Do you agree with my above comments? Other thoughts on the current environment and the future of buying long term real estate?

@David Cruise - Can you ask? I may not be interested today but if I plan on growing this is going to be a key component to that since I can only handle so much from down here (I may be reaching my limit). If I can get an idea of what a property manager actually does and the charges that would help me with my planning into the future.

Great to hear others out there in my situation and it appears very few are doing it the same way I am.  I have considered a property manager before, especially when things get messy and I get stressed out. I struggle with the cost of property management but as I get more properties the cash flow may be getting to the point where I am more comfortable. I do have a contractor that I have been friends with since high school that owns his own business. He has been a blessing the last several years (getting properties ready to rent, lining up other contractors to complete work he can't and he has even found me a tenant or two!) but when he gets big jobs it can be tough to schedule him. In that case I have some other folks but no one as skilled as him so I end up paying someone that I don't really know and it can be more expensive. Not sure how many more properties I can handle from here but it is getting to be a lot, especially when I have contracts pending to buy other properties and dealing with vacant properties as well. I appreciate your responses....

So the comment about knowing then what I know now is specifically related to my housing experience in Charlotte, not my rentals in Peoria although I have obviously learned quite a bit managing these over the years as well but the "opportunity" has never been near what I missed in Charlotte.

That is exactly right. When I moved to NC I knew I bought my house cheap. There were 3 other houses for sale in my neighborhood at that time. I bought in 2011 and sold in March of 2015 at a 25% premium. After talking to some old neighbors, if I could have waited another 12 months or so that premium could have been 35%. You don't see that type of appreciation in Peoria unless you steal a dump and turn it into a prize. That is probably the advantage to investing in a larger market, higher upside in a shorter amount of time but you have to be knowledgeable of the market.

Houston is a large market. I just haven't gotten into it. I moved to Charlotte,NC in 2011 and I should have bought 10 properties. I would have if I knew then what I know now. My friend's mom just sold her Peoria condo today and it was on the market for less than 24 hours. Maybe the market ain't all bad in Peoria :)