All Forum Posts by: Account Closed

Buy a note.

Yes, you need a PM ASAP until you learn the ropes, if you want to self manage the property later on. 

The PM is going to know the laws, how to vet tenants, show the property, collect the rent, help in evictions (if needed) etc.

I have an annual rain cutter service, termite, and property inspection done on all my properties. Had a roof badly damaged due to a clogged rain cutter.

Also, I have one septic tank serviced every 3 to 5 years with tenants using septic tank cleaner.

Another 1970 baby! 

Just turned 50 myself at the end of July and my rental properties' income should allow me to have some wiggle room to semi retire when I turn 53 in 2023.

My pension will be between $3,000 - $3,200 a month for my life time and my wife's life time. Our residential property ($250K property) will be paid off as well in 2023.

Looking to have a nice round number of 10 rental properties in my portfolio, cash flowing at least $5,000 to supplement my pension that will take a hit from inflation. 

Right now I'm at house #5 with plans for house #6 in July.

I'll probably never fully retire, but work at least part time. 

Good luck to you and your journey sir!

No problem with self pay with any of my lenders. 

I actually self pay all my insurance premiums in full at the beginning of the year for a discount with my insurance company because I bundle. 

It takes a little effort with the lenders, because they are not used to clients doing this and you have to make sure they are not still taking money out for insurance with your monthly payments. I still want them to take money out and hold in escrow for the taxes.

I had one lender after I communicated to them that I was going to be paying my insurance in full for the year up front and that I no longer wanted them to hold money in escrow for insurance, close the whole escrow account including the money held for taxes, and they sent me back all the money that was escrow, in which I had to send right back saying I still wanted them to hold money for taxes.

It took a few phone calls to get that through to them.

I was in the Cleveland market for 4 years and got out. 

Speaking from my experience only, the turnover killed me. 

I had a 1952 Cap Cod 4 bed 1.5 bath 1,600 sq. ft home with garage $900. a month in the Warrensville Heights area. 

We had 4 different tenants those 4 years as they were always moving on, leaving me with over $5K a pop on the rehab when I had to get the property ready for the next one. 

Also, the city loves to nickel and dime you with landlord and occupancy tax, plus their own inspectors come out to your property and find things for you to fix. 

Every year it was something that was a violation. 

My PM would say to me yea they pretty much just want the check in the mail.

Insurance and taxes kept increasing as well.

Sold the property back in Feb. the first week I put it on the market to some guy in Oklahoma. 

I'm staying in the south from here on out.

Technology today makes it so easy to look at all the markets and find what you are looking for.

I own a SFH in East Point less than 3 miles from the airport, right next to the Perimeter (I-285 with a MARTA stop on the street, plenty of shops nearby.

The house was built in 2018 has over 2000 square feet 4 bed 2.5 bath 2 car garage and it rented the week I put it on the market and has had the same tenants ever since. 

It rents for $1,470 a month with the tenants signing a 2 year lease that is due at the end of March.

I've thought about the short term rental approach for this property due to the location, but my tenants have been so good in up keep and paying the rent on time and the fact that they don't want to leave, it might be awhile before I have that option :)

No cash reserves at that amount, one big repair away from dead in the water.

100% 

I've yet to have a tenant not pay in full through this whole event. 

I've been lucky that all my tenants with the exception of one are in the medical profession, and the one exception is in construction.