All Forum Posts by: Brandon Vanderford

Hi Chi, as a property manager local to the Raleigh area, I will second what most of the other folks have said. With you being several hours away, hiring the property manager is probably a good move on your part. (Fwiw, the rates sound fair to me. I usually charge 10% of collected rents and a 50% leasing fee, so it sounds like you are getting a good deal, imho.)

Hey Rea, some of your strategy will be dependent on whether you are aiming for immediate cash flow or long-term appreciation. I see that you are posting here in Raleigh. I am very optimistic for future appreciation in the area. However, the prices are high, and your immediate month-to-month cashflow might be better elsewhere. 

Another Wake County specific tip. The Raleigh area tends to have far fewer multifamily homes than the average, similar-sized city. You might look at Durham, instead. That will open your options a bit. 

If I were in your shoes, I would probably act sooner rather than later, if the numbers on the house hack make sense (just because I like to take action rather than wait). Of course, I cannot predict what the house market will look like in 12 months, so there might be some advantage in waiting. 

I second Adam. Percentage of gross income tends to be more effective, as it incentivizes your property manager to minimize vacancies. 

I have managed about two dozen STRs in the past, and have charged a 25% management fee.

I could not have rehabbed my investment property without a HELOC. Massively valuable tool.

Right, thanks for the feedback! A default is a major red flag. My main concern is verifying the expenses to income ratio, and confirming how much the student loans cost the holder on a regular basis. That is not reflected on the report that I received from Zillow, unfortunately. 

I received an application from a tenant who is otherwise qualified, but the credit report shows over 100K of student loans remaining. I am concerned about the monthly payment required to pay these loans, but the applicant states that she only has to pay $275/month. Is this temporary (a type of COVID-relief measure)? Does anyone have experience renting to tenants with high student loans?