All Forum Posts by: Bill B.

I’d be interested in collecting an opinion or two from people that have made this choice before...

I've collected about a dozen SFR rentals and I'm considering selling one. They've all had the same tenants over 3 years and most have 1-3 years of lease left. So I have good financials and history for them.

If you were going to sell 1 would you sell it to a future homebuyer thinking you might get more money? Or would you sell it to an investor thinking they might be more interested in the income numbers than paint color or other nit picky things? Can I get as much from an investor or at least close?

My fear chasing the homebuyer is I have to kick a solid rent paying tenant out at lease end, probably do some make ready, then live without rent while marketing and hope the sale goes smoothly. That alone could cost $4-5k in lost rent alone. 

Thanks. 

2 bad examples out fo 3k don’t sound so bad. :-) (since I’m sure those we’re the only 2 you could think of.)

@Jay Hinrichs

Man Jay, you’ve worked with some scummy people. Hopefully it’s just because you’ve worked with so many people. You certainly don’t come across as jaded. 

Cash flow per unit before and after Managment isn’t going to be affected by the number of units as the fees are per unit.  They’re idealing going to take a percent of rent (8% in Las Vegas) and maybe a placement fee ($300 given to a realtor in Las Vegas). I managed the first 5 myself just to know what should be involved, what to look for and so on. I have 13 now and only manage 2 that have been with me for 5+ years. 

They’ve paid for themselves in my situation in reduced stress, raised rents and more importantly. Enforcing and collecting late fees. (They keep half.) in 15 years with 13 properties they had to start 2 evictions. One moved out before court date the other paid all the fees for being late and filing. 

Are those rent reductions usually apartment related? I rode through the Las Vegas market "downturn" and never stopped raising SFR rent every year. This was "middle of the road" housing going from low $1100's to $1300's $25 - $50 per renewal.

My father in law had to start and run the local rural water association in MN farm country when a few square miles of houses/farms all had their wells run dry the same year. They had to run water from a lake 26 miles away and split up the costs or abandon their homes. (A few couldn’t wait for the project to complete and literally walked away. My father in law bought another home outside the drought to get by until it was finished.)

Personal wells don’t have this problem but any rental, especially mobile home parks can suddenly be required to meet stricter epa rules since your providing water to unrelated people.

I've done all SFR but today's paper reiterated that Las Vegas was again the appreciation leader of the country. So buying today may be rough. I'd love to go to fourplexes, but not here. I buy less than 20 year old houses, with stucco siding, with garages, pitched roofs, in decent neighborhoods...

Las Vegas fourplexes are about the opposite in every concern. If I was serious about them I’d hit up @Terry Lao and take him to lunch/dinner. He’s an oos Las Vegas 4plex investor. 

We have non-factor weather, no income tax, low property tax, cheap flights, we favor landlords and have good llc laws including series llc. But it's not STR friendly in the least. You could buy for the reason I bought my MN lakefront rental, I plan to live there some day. If you want to live in Vegas when your old and crusty buying now can be part of you're retirement plan.

I've had the income approach required and considered when applying for a mortgage on a strictly investment SFR because they'll add 70% of that income to help qualify for the loan and for DTI ratios.

I’d be on your side Thomas except this is the third thread in a row I’ve read today where you’ve copied and pasted the exact same respone about the poster looking up the answer and getting PM. (At least I hope you are copying and pasting and not just posting the same thing over and over.)

If you’re not going to add to the thread why bother posting at all? Maybe she was hoping a Wisconsin landlord would spend 30 seconds helping? More than 90% of the posted questions on BP could be answered with one response, “look it up” but then what’s the purpose of BP?

Ps.   pocketsense.com says...

“In Wisconsin, landlords may evict tenants during any time of the year, including during the winter months. Landlords must, however, provide written notice to the tenant providing an adequate notice period prior to filing a summons and complaint in the county clerk’s office. After providing the tenant with written notice, serving the tenant with a complaint and summons and receiving a judgment in the landlord’s favor, the landlord can proceed with eviction through the local sheriff’s office.”

Leo, @Terry Lao should be able to tell you if a maintenance person is required, but I doubt it.