Investor · New York CIty · Member since 2020 · 19 posts · 18 votes
Hey everyone,
I live and work in Manhattan and have been interested in getting my first out-of-state rental for over a year without action. My focus has shifted a bunch of times between FL or maybe more local like the poconos. Anyone in a similar situation and interested in meeting up for drinks / coffee, after work / weekends? I figure with more people in the same situation, we can help each other out and have some sort of accountability.
Metro Detroit offers many options for meeting the 1% Rule and relatively high ROI.
Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...
The two most common mistakes we see investors make, over & over again, are:
1) Not understanding and running their own ROI numbers
2) Not having a clear understanding of the type of asset a property is
In our opinion, your best team member should be your Property Management Company (PMC). They have to deal with any property you buy every month until you sell or terminate them. Everyone else on your team will be transaction-based and not really involved after a purchase.
We're in the Metro Detroit area, so you may want to follow our blog here on BP, but at least read the following posts:
1) Learn to "Maintain to the Neighborhood", not your personal standards
2) Tenant-Proof everything you can
Hard surface flooring, not carpeting (too easy to trash)
Same basic paint for everything
No garbage disposals for them to break
Only spring-type doorstops also with plate on the wall
Glue rubber mats under sinks to prevent water damage
Sheet aluminum on walls around stovetops, for easy grease removal
Towel racks - screw 1x3 to wall studs, then screw rack to that
Install low-profile downspout ext, not aluminum that always disappear
Plan on cleaning gutters and leaves up in the fall as tenants won't
Avoid garage door openers
3) Have a great application screening process:
Check credit for evictions & convictions, utility collections
Focus on employment/income stability
Require bank or debit card statement - you'll be surprised what they spend their money on!
Make surprise visit to their current home to see how they treat it - that's how they'll treat yours!
Deliberately have a few challenges in your screening process - it will weed out "entitlement mentality" problems
4) Allow payment plans, but create system to track when payments due, so they don't keep falling further behind
You will need to call them on due dates or they will fall further behind
Be prepared to give a strong NO when asked if you will change rent due dates to "make it easier" for tenants to pay rent based upon their SSI or paycheck dates. This shows total lack of budgeting and is a sign they will only fall further behind with more excuses.
5) Have a defined eviction process, but allow 3-5 days of flexibility for inevitable slow-pays.
6) Find handymen that live in an area only 1 Class higher than your property. Sending a Class A handyman to a Class C or D property will waste your money. Send Class B to C and Class C to D. They will also get along better with the tenants.
Hi Eric, I would be down for meeting up. In the past I owned 55 units in Detroit, with the battle scars to show :) Next week I am closing on a Chicago foreclosure, so we should have plenty to talk about. Do you want to jump on a call to discuss or plan to meet in person?
Metro Detroit offers many options for meeting the 1% Rule and relatively high ROI.
Follow our "Deep Dive" series we're doing about Metro Detroit cities and City of Detroit Neighborhoods: https://www.biggerpockets.com/...
The two most common mistakes we see investors make, over & over again, are:
1) Not understanding and running their own ROI numbers
2) Not having a clear understanding of the type of asset a property is
In our opinion, your best team member should be your Property Management Company (PMC). They have to deal with any property you buy every month until you sell or terminate them. Everyone else on your team will be transaction-based and not really involved after a purchase.
We're in the Metro Detroit area, so you may want to follow our blog here on BP, but at least read the following posts:
1) Learn to "Maintain to the Neighborhood", not your personal standards
2) Tenant-Proof everything you can
Hard surface flooring, not carpeting (too easy to trash)
Same basic paint for everything
No garbage disposals for them to break
Only spring-type doorstops also with plate on the wall
Glue rubber mats under sinks to prevent water damage
Sheet aluminum on walls around stovetops, for easy grease removal
Towel racks - screw 1x3 to wall studs, then screw rack to that
Install low-profile downspout ext, not aluminum that always disappear
Plan on cleaning gutters and leaves up in the fall as tenants won't
Avoid garage door openers
3) Have a great application screening process:
Check credit for evictions & convictions, utility collections
Focus on employment/income stability
Require bank or debit card statement - you'll be surprised what they spend their money on!
Make surprise visit to their current home to see how they treat it - that's how they'll treat yours!
Deliberately have a few challenges in your screening process - it will weed out "entitlement mentality" problems
4) Allow payment plans, but create system to track when payments due, so they don't keep falling further behind
You will need to call them on due dates or they will fall further behind
Be prepared to give a strong NO when asked if you will change rent due dates to "make it easier" for tenants to pay rent based upon their SSI or paycheck dates. This shows total lack of budgeting and is a sign they will only fall further behind with more excuses.
5) Have a defined eviction process, but allow 3-5 days of flexibility for inevitable slow-pays.
6) Find handymen that live in an area only 1 Class higher than your property. Sending a Class A handyman to a Class C or D property will waste your money. Send Class B to C and Class C to D. They will also get along better with the tenants.
@Eric Ng. I live and work in Manhattan as well. Spent a lot of time exploring TX market, but then decided long distance investing was not for me (at least for now, till I gain some more experience). Last year, started investing in Albany, NY which is about 2.5 hours drive. I own 7 doors now. I drive down there about twice a month. Happy to connect.
@Eric Ng hey Eric. I am too from NYC and just started my first out of state invesment in Cape Coral FL. Nervous yet excited - let me know fi you want to connect or search cape coral here and youll see a few post on new SF building invesment
Hi everyone! I encountered @Eric Ng's post and found myself in a similar situation. I am buying a condo in NJ and work in NYC. Would it be okay if I join the meeting on 2/17?
Hey. I'd like to connect as well and see if I can provide any value. I live in Brooklyn and work in Manhattan. While I'd love to invest where I live, the point of entry here is high so I've also been exploring other markets. Specifically update NY.
I live and work in Manhattan and have been interested in getting my first out-of-state rental for over a year without action. My focus has shifted a bunch of times between FL or maybe more local like the poconos. Anyone in a similar situation and interested in meeting up for drinks / coffee, after work / weekends? I figure with more people in the same situation, we can help each other out and have some sort of accountability.
Thanks!
Eric
Hey Eric,
I was in a similar situation as a W2 working full time, doing self education, and realized I needed to take some action. Finally I closed my first deal 44 Unit in KS in December 2020 and this is a post I put up in Biggerpockets thereafter. This gave many beginner friends some idea as to where to start. Hope it helps.
Also, I'm planning an out of state multifamily investors in-person meetup in Manhattan sometime in May and already have a list of about 30 people who want to attend. Let me know if you want to be on the list so that I can notify you later for more detail. Yosef
I live and work in Manhattan and have been interested in getting my first out-of-state rental for over a year without action. My focus has shifted a bunch of times between FL or maybe more local like the poconos. Anyone in a similar situation and interested in meeting up for drinks / coffee, after work / weekends? I figure with more people in the same situation, we can help each other out and have some sort of accountability.
Thanks!
Eric
Hey Eric,
I was in a similar situation as a W2 working full time, doing self education, and realized I needed to take some action. Finally I closed my first deal 44 Unit in KS in December 2020 and this is a post I put up in Biggerpockets thereafter. This gave many beginner friends some idea as to where to start. Hope it helps.
Also, I'm planning an out of state multifamily investors in-person meetup in Manhattan sometime in May and already have a list of about 30 people who want to attend. Let me know if you want to be on the list so that I can notify you later for more detail. Yosef
hi Yosef im interested in the meetup. please share details when you get a chance
I live and work in Manhattan and have been interested in getting my first out-of-state rental for over a year without action. My focus has shifted a bunch of times between FL or maybe more local like the poconos. Anyone in a similar situation and interested in meeting up for drinks / coffee, after work / weekends? I figure with more people in the same situation, we can help each other out and have some sort of accountability.
Thanks!
Eric
Hey Eric,
I was in a similar situation as a W2 working full time, doing self education, and realized I needed to take some action. Finally I closed my first deal 44 Unit in KS in December 2020 and this is a post I put up in Biggerpockets thereafter. This gave many beginner friends some idea as to where to start. Hope it helps.
Also, I'm planning an out of state multifamily investors in-person meetup in Manhattan sometime in May and already have a list of about 30 people who want to attend. Let me know if you want to be on the list so that I can notify you later for more detail. Yosef
hi Yosef im interested in the meetup. please share details when you get a chance
