All Forum Posts by: Adam Tafel

Thanks for sharing @Bill Dean ! Some short-term discomfort (living with tenants) for the long-term gain! I'm in the middle of the discomfort phase at the moment, great to get some inspiration this morning. 

@Justin Youngblood - I would document everything and plan to operate without their rent for a while. Focus on things within your control, unfortunately this situation is not one of them. If someone can't catch up being 1/2 month behind after almost a year, they aren't going to be able to catch up any further. 

I don't think that knocking on a door asking for rent would be productive, but maybe a handwritten note on their door, asking them if they need assistance with anything? You want them to be on your side, getting them to empathize with you and finding some common ground will go a long way. I would give them some space, but you want them to realize that you're both struggling together through this difficult time. You know that the government is about to send them a check, but you can't guarantee that they'll sign it over to you. 

@Ean Bass - welcome to BP! Nice work getting a jump start on REI. You'll need about 2 years of employment history to qualify for most loans, so the best thing you can do is get to work. I'm assuming you have a job, try to get employment within the same industry when you move for school.

There's always a way to reduce living expenses by leveraging yourself, you'll need to get creative. Network with investors in your area, attend meetups, keep saving cash. Maybe you'll find an owner willing to consider seller financing/contract for deed? Maybe an owner would let you rent rooms out on Airbnb, or manage a building for free rent. If you're already posting about this kind of stuff as a senior I don't doubt your ability to get creative. 

What market are you in? 

Welcome to BP Greg! I grew up in Eau Claire, I've been investing on the other side of the river for a few years now. Reach out if you'd ever like a hand analyzing a property, happy to help!

@Sandy Sciales - thanks for sharing, I'm going through a similar situation in Minneosta. I'm trying not to be too reactive - life wasn't this extreme 2 weeks ago, I'm going to wait and see what happens before listing anything. I also had a wave of cancelations, followed by a second wave of new medium-term bookings. I still don't plan on being very profitable in April (all Airbnb properties).

Coronavirus aside- I highly recommend trying the mo/mo furnished rental. Operating costs are much lower which offset the loss in revenue; I find that many of my properties cashflow better this way. Craigslist, zillow, and facebook are obvious choices. You can also lengthen your minimum stay on Airbnb/VRBO and price your homes to be competitively under what your competition is charging, that's my strategy right now.

As for property #2, why not list it for sale and rent simultaneously? There are plenty of families in tight situations, offering flexible lease/closing terms would play to your advantage.  

@Griffin Ahrendt - welcome to BP! I wish I had thought of house-hacking at 21, nice work getting ahead of your peers! Here are my thoughts-

-you can usually charge more when you rent by the room. Check out rental comps for private rooms in your area - you might find that it doesn't make a huge difference, but in my market (Twin Cities) you'll get considerably more. You might consider furnishing one of the rooms and giving Airbnb a shot, where you can net quite a bit more. 

-you are right to run numbers on 3 and 4 rooms, since you want this property to work as a rental property after you house hack. When you're done with school you'll be looking for a job, and you probably don't want to be stuck in your college town. It's gotta cashflow once you move out! You also want to make sure the househack is worth it, and that you'll be breaking even while you live there. 

-repairs and cap-ex can be the most challenging aspect for new investors, there are no standard rates that will work across the board. $200/mo is a safe bet for a SF of this size for cap-ex, and your repair estimate looks ok. You'll be renting to college students who (no offense) aren't always the most gentle tenants. An experienced agent will be able to look at the structure and mechanicals and give you a good idea of what to plan for. 

Feel free to reach out if you have any further questions, keep utilizing the BP forums. Good luck! 

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Can anyone with an economics degree weigh in on the long/medium-term effects of all this deferment? Rent, mortgages, other business/personal loans, various industries "bailed out", the fed "injecting" money into various markets. I have a basic understanding of macro economics, but my brain cannot wrap itself around the potential consequences. 

Is money just a make-believe social construct, and we can essentially take a holiday from responsibilities and everything will turn out fine, assuming the smartest guys in the room are babysitting everyone? If so I'm 100% on board. 

I realize this is a bit off topic, I've been drinking too much coffee and reading too much WSJ for my own good. 

I don't think that advertising the eviction moratorium is in anyone's best interest. "Hey guys, you realize that you don't have to pay rent, right?"... I plan on dealing with non-payments if/when they occur, but I'm not doing anything proactively. I'll work with tenants and try to be as helpful and generous as possible if I need to, just hoping for the best at this point.

Like @Evan Kraljic, I'm taking the opportunity to fix up a few properties and focus on organizational work that I've been neglecting. April might not be great from a revenue standpoint, but I can still do plenty of valuable work. I am a little concerned about my tenants ability to move out on 4/1, but I'll cross that bridge when we get there. 

@Kyle Nelson - I'm the same way, resisting the urge to micro-manage is tough. If you invest locally you might as well self-manage if you have under 10 doors or so, you can still use leasing agents/handymen/software to make things easier. 

@Kevin Zolea - I think that's a smart approach, keep us posted