All Forum Posts by: Andrew Frowiss

@Greg Kasmer I used to manage a 20 unit apartment complex and we had space heaters in one of the storage units for this exact scenario. It's the way to go to keep your Tenants warm until you can get the Vendor out to help. 

I would also recommend getting an after hours phone answering service at some point. I use AnswerFirst to take calls from Tenants, and have been very happy with their service. They can use scripts you give them to collect all the info you need, and have some knowledge about what is considered an "emergency". That way you are only getting the call if it's something that can't wait. If it's something that can wait then you would simply get an email to follow up during the next business day. This is something that will help you scale your business.

Just my thoughts!

lots of good tips in this thread! I also would like to point out the potential to "Tenant proof" rentals. I don't like carpet since it retains a lot of the pet smell in the home, and it stains. Consider putting down a hard more durable type of flooring instead of carpet. Most of our landlords chose to put a 20 pound weight limit on pets, and charge a non refundable pet fee in addition to pet rent and deposits.

@Wendy Busa I agree what Nathan said. I'm a Property Manager and we actually do work with home Warranties if our clients have them, but I don't recommend getting one. They are super difficult to work with, and on more than 1 occasion the work took forever to be completed. In 1 situation they weren't able to get any of their vendors to pick up the work, and the HW company allowed us to find our own vendor to do the work. After calling around I quickly found out that the vendors I was talking to refused to work with HW companies as they pay as little as possible. 

Lots of issues, and I've never found a company that did a good enough job to change my mind.

Hi @Shiloh Lundahl GREAT post! I've been on the BiggerPockets platform for a number of years now, and I have always had these same thoughts. I'm a Realtor and Property Manager in Austin TX and I have clients ask me how they can replace their income with passive cash flow. My answer to them is when are you looking to achieve this goal? Austin isn't a major cash flow positive city like I've heard others say, and a "good" deal in Austin in the current market is a break on cash flow. I know that doesn't sound like a "good" deal to others reading this, but you make your money on the appreciation and loan pay-down. I tell my clients that their plan needs to incorporate a secondary market. Austin is a good wealth building market to stack equity. Every few years 1031 your funds into bigger purchases, and in 10 - 15 years or so (whatever fits your plan) transition yourself into a different market with higher cash flow and lower appreciation. There are other markets in the US that are more cash flow positive.

I think goals are good to have, but you need the right path to follow, and you need to be realistic with your timeline. 

Also having a great Realtor/Property Manager helps too! :)

@Marlia Stone For self managers with 1 or a small number of properties it's a little more difficult to run applications and do all proper checks necessary. Talk to some Realtors, property managers or other landlords you know (maybe visit an investing meet up) and see what kind of criteria they use to screen their applications. Take notes, create your own list of criteria each Tenant must meet, and never deviate from it.

I'm not sure what would be the best option for you to run your background checks, but I used buidlium in the past. They seem to be a good option for investors starting out with their portfolios or new property managers. Another service you could look into is https://www.mysmartmove.com/. 

I would call your utility companies and see if you can open a landlord utility account. This way utilities roll back into your name automatically when Tenants terminate service upon move out. 

Avoid taking vertical photos if you can. 

Consider getting your carpets professionally cleaned! If you do so you could require that the Tenants professionally clean the carpets upon move out. This should continue with your future Tenants. Ask for receipts!

While going through this process make sure to take diligent notes as you go along! Create a written move in/out process that you can follow and track each time. As you go through this process more you will find areas you can improve on and tweak your process. If you only have 1 rental then you will only be doing this once or twice a year depending on your Lease term so this is important. 

If you use Buildium or Appfolio to manage your properties you should get access to property inspecting software. This is super important for security deposit deductions at the end of the year as well as creating your makeready punch list. If you don't use these services then try and find something that you can use on your smart phone. Without an app on your phone or something like I'm describing it's harder to stay organized and do things consistently. Ideally you should be doing 2 inspections. 1 for your makeready punch list, and another for you to compare to your next move out inspection.

Just my thoughts on the topic! Best of luck to you!

Hi @Chad Hack thanks for posting! This is a great question, and one that I'm sure others reading will have their own opinions on. Out of any strategy are there 1 or 2 that stick out to you the most? If you pick a direction and run with it, you may change your mind and pivot in a new direction after a deal or two. When my clients ask me this question I get them on a zoom call to go over their options and analyze some deals with them. Sometimes what a client wants and what our Texas market can provide are 2 different things so it would be a good idea to reach out to specific Agents in the markets you are most interested in. You may find that after talking with them your strategy may need to be adjusted to fit a particular market, or perhaps you need to look elsewhere. 

Just don't get caught up in the "Analysis Paralysis" part of it. It sounds like you have learned a lot in preparation for this, but some things you will have to learn through going through the motions. 

Reach out to other investors, buy them a cup of coffee, and ask them about their business. See how it's going, what issues they are experiencing, common pitfalls, and ask if they would do things differently given a fresh start. You can learn a lot from other investors in your area.

Just my thoughts on the topic!

Hi @Robert T. here are my thoughts about your situation.

I'm a property manager in Texas, and in my experience when a Tenant violates the Lease Agreement (whether they are not paying rent or raising animals you didn't agree to) you need to talk with them about it right away. If they violate the agreement, and you allow it to happen then one can argue that you are setting an expectation that this is ok and it's harder to go back in the other direction. It sounds like there are a number of issues that you have with these Tenants and that things could turn sour quickly. Keep a log of all your communication with them, and stick to email. If one of our Tenants is late on rent we immediately reach out to them to see if there is a bigger issue we aren't aware of. We also serve them a written notice informing them of the unpaid rent + late fees, which will get Tenants call you if they are the type to avoid your calls. 

If this was one of my rentals I would not renew their Lease. 

@Jonathan Edmund I have to agree with @Joe Villeneuve in his reply. I would side on putting down %20 and using your funds on getting your next deal. Having cash allows you to do other things like finance flips for other investors. If you have money after you can use it on your next deal, or partner with other investors. It all depends on what your investing goals are. I don't try and get rich off 1 deal, and instead am always looking for the next one as this wont be my last.

@Ryan Guffey I didn't have to look on Bigger Pockets to find someone. I partnered with my Broker since he in an investor as well. I'm sure he wasn't the only one in the office that would have partnered with me. If you happened to get a deal under contract and told investors in your area (hopefully ones you know and trust) I'm sure you could find someone. I know crowds/meetings are not a good idea with this Covid 19 pandemic, but before the virus I would go to investor meet ups in my area. At the end of the event they would offer the floor to anyone who had a deal to pitch to the room. Meet ups are also a great way to build relationships with investors in your area. 

I would just make sure to partner with someone you can trust, and someone with experience. Ideally find 1 person who checks both boxes! 

Hi @MarieChele Porter,

I would recommend getting a home inspection. I once got a deal under contract, and found it had foundation issues (we had a foundation machine on hand). We got a home inspection during our option period and negotiated the price down even further because of the issue. The money we saved negotiating was more money than the home inspection.

Always, always, always get a home inspection!