All Forum Posts by: Ben Thorsen

In particular- how was the process when the tenant moved out and there were charges reported against the Security Deposit?  Did Obligo pay quickly, etc.?

Other feedback appreciated also.

@Matthew Shedd - so how has your experience been with Holistic REI since the purchase of your triplex? I am hearing good things about them and that they have been doing this type of new construction for a while and it is somewhat proven.

Residential mortgages, aka "conventional" can be used for properties with up to 4 units. Also, I believe the due-on-sale clause was removed a few years ago from FNMA backed loans, but generally I've heard the same advice- if you are making payments and in good standing, they aren't going to go thru foreclosure just because you transferred to an LLC.

@Kent Cater... I attend REIA of Oakland. you can find them on Facebook and Meetup, etc. 1 of their contributors (she does a presentation every month on a different topic) is part of a property management team that works mostly/all on properties in Detroit. From the stories I hear, I would have her manage if I had any in Detroit. (mine are all in the 'burbs here, instead...)

Good luck.  No house should sit vacant for a year...

@Mark Fries ... you're killing it.  

@Christian Hutchinson ...  I'm aware of the laws around this, and some strategies regarding it.  I'm also in Detroit area (Oak county).  Do you participate in any networking groups, etc.?

@Nathan G. - thanks for the input.  I will keep it in mind if I move forward in my discussions with the potential PMs.  

@Brent Coombs - sure, I wouldn't have to handle calls from tenants, but I'd still get a similar amount from the PM.  That's how I understand it from a friend who uses PM on his 5 properties-  he has zero interest in doing it, but he never has.  I have done it from the onset, so I'm not "afraid"...

I've been managing the 10 properties for about 5 years.  In that time, I have managed the turnovers, with help of course, and listed/shown the property and selected the tenant.  It's worked out pretty well actually.  In that time, I've hired a realtor exactly twice to list and show.  Both of those times have ended up court, as the tenants have some distinct lower respect for me as the PM/owner than when I am dealing with them from the very beginning.  In the other cases, when I list and show, it apparently establishes a higher level of respect.  This gives me concern in using such services, but I'm not sure I want to keep managing the turnovers as I have been, and thus am looking into alternatives.  I think a "personal assistant" is a good suggestion, and it has occurred to me before.  I'll have to give it further thought.

I own and manage 10 properties currently.  They are all single family residences- 6 houses, and 4 condos.  It is generally ok, and on average my tenants stay 2-3 years.  5 of the properties are within 10 minutes of where I live- and the other 5 are about a 1/2 hour away: 3 to the north, and 2 to the east, so they are bundled" somewhat, which helps.

I am contemplating hiring a 3rd party.  I spoke to 3 companies (Detroit 'burbs) who all offered me similar cost structures:  8% off the top, 1st months rent if they list/show, and then the coordination of repairs is "free" (no management costs tacked on).

The 8% is the part I struggle with.  That's a grand a month to basically collect rent.  In total, my properties probably average 1-2 issues a month (12-20 repairs total, per year).  My questions are:  Is that price structure standard around the country, or are there others?  I would gladly do $25-40/month/property ($250-400 total) for them to collect rent, and then notify me of repair requests.  If I have them get bids and handle the repair, then charge me a fee.  Or, if I take care of it, then they are simple passing on a message.

Am I dreaming?