All Forum Posts by: Corby Goade

My company manages several properties in Boise, we are hands on communicate clearly and consistently with both tenants and owners. Happy to speak with anyone looking for a PM in the area.

@Nathan Gesner, GREAT suggestion, reaching out to some of my realtor friends now!

I am an investor and also manage properties for other investors. I am looking for unique ways to promote my property management business. I regularly attend local meetups, other than letter or postcard campaigns, what other ways should I be finding other investors to discuss our services?

Hey Edward, I'd love to meet up. Shoot me a PM and we will find a time that works.  Looking forward to it!

@Anwar Selo, that's a tough hill to climb, but who says you have to buy a house? Have you thought about partnering and doing the leg work for someone who is already investing in your area? What about getting together with a few investors and partnering on your first deal? Heck, find an investor who will pay you a commission for negotiating rehab costs down for them. Purchasing, rehabbing and managing properties has a steep learning curve, I don't know how you could do that for your first deal. In any occasion, best of luck- where there's a will, there's a way.

I would be much more worried about doing your first deal remotely than buying a fixer. If you really want to learn, especially as you are getting started, you need to be intimately involved and on site. I'd buy something in your area for your first few deals.

Have you considered using a HELOC to fund your purchase and repairs? Can you get a loan? If you know what you are doing, you could make those numbers work, but you'll have to fund the repairs along the way, and hard money is expensive and terms are aggressive and typically don't work in your favor.

Have you considered that pulling money out of your IRA beyond what you've contributed will result in a penalty?

It sounds like this could be a good deal, but you might not be in the right spot to take advantage of it. I'd seek out a real estate investor's group in your area and start networking. If nothing else, they're a great source for ideas and resources in your area.

Good luck!

I haven't had either done before a deal in quite a while. Typically, we put an inspection contingency in an offer and I will do my own inspection- mind you, I am talking about SFRs and duplexes. Larger multis would prompt me to hire an inspector. I feel confident that I will catch anything of significance that a professional inspector would catch and it gives me an opportunity to really go through the property with a fine toothed comb. After I do my inspection is when we really start the negotiation process.

We typically use the BRRRR method, which requires an appraisal when you refinance, but I know my market well and pull plenty of comps ahead of time. It is not often that my ARV and the appraisal are far off.

Best of luck!

Absolutely- the rent increases we give usually don't even come close to covering the annual property tax increases we see. If you don't, a couple years down the road you'll find you are way behind market, your taxes have gone up $100 per month and all of the sudden you need to give your tenants a 15% increase rather than a 5% once per year- you are not likely to have a tenant balk at a 5% (or so) annual increase, but a big one every three years could cause some real issues.

We have a standard renewal letter that we send to tenants that we want to keep and give them a choice. They choose the length of the lease that they want and that correlates to a specific increase in their rent, usually 3-6%. They feel empowered to choose and we don't have to knock on their door and argue about an increase. We've been doing this for over five years now, and I have not had a single conversation or argument with a tenant about an increase since. The renewal shows up in the mail or my email and it's done.

The payment time frame is on the long end, but not out of the ordinary. If they are paying you on the same date and regularly, you should be fine. Turnover costs vary wildly, but you are right, tenant screening plays a bit role in that.

Online reviews are hit and miss- you are better off to ask your property manager for references from other owners rather than renters. Some renters will trash a place and leave a negative review because they didn't get their deposit back.

All of that said- there are way too many property managers that view their tenants with contempt and as a nuisance. I believe that finding great tenants at every level (A, B or C properties) is possible, but it's just as important to treat those tenants with respect and as customers. A bad property manager can turn a great tenant into a terrible one.

You might sit down with the property manager and review their screening process and acceptance criteria. If your philosophies are way off, ask if they can screen differently for your properties or you might need to find another property manager.

Good luck!