Anyone free to help a fellow newbie out?

[Julien S.]

Hey everyone,

My name is julien and I would like to start off by thanking you for taking the time to read this post...

I am a beginner investor interested in investing in multifamily homes (3-4 units) in the Boston area (North and South shore). Although I am excited to begin my real estate journey, I do have a FEW questions for those with experience in the game:

Question 1: What is an efficient way to perform a property analysis? I have "practiced" with MFP I've seen on Zillow and Redfin and my numbers never come out the way I want them to...Two metrics I tend to have issues with are estimating rehab costs and utility costs.

Question 2: I, and probably most other beginners, have never run a background check on tenants. How would I go about doing this? What are some pros and cons to look out for when choosing the right tenants? 

Question 3: When creating your leasing agreement what are some important things to add and what are some things not to add? 

Question 4: When should I consider hiring a management company to manage my properties? 

These are all the questions I have for now. If any other questions come to mind, I'll be sure to reach out!

Thanks,

Julien

[Lien Vuong]

Hi! 

Hope this helps you to move forward! Best of luck!

Question 1: What is an efficient way to perform a property analysis? Utilities costs are public info, you can call the city for water/sewer and the utility company to find out the property's average use bill. Rehabs you can pay a GC to walk through a property to get local pricing and use those figures from there. 

Question 2: I, and probably most other beginners, have never run a background check on tenants. How would I go about doing this? What are some pros and cons to look out for when choosing the right tenants? You can use tenanturner.com or other sites that do tenant screenings using the credit bureaus, these are typically paid for by the tenant and part of the cost of application. A good tenant has consistent rental history (3+ years in one place) with equally stable income and sound credit. Finding that right of mix allows you to have a long term relationship with the tenant and create trust. 

Question 3: When creating your leasing agreement what are some important things to add and what are some things not to add? Automatic lease increases are very important, add lead, property condition, and deposit receipts in all leases so everything is recorded. 

Question 4: When should I consider hiring a management company to manage my properties? Previous history, units under management, fees and a la cart items, how well staffed they are, and if they currently operate in your local area.