All Forum Posts by: Jeremy Zindel

I would agree with @Bill Fennelly .  A bedroom that also doubles as a hallway is obviously not ideal.  And I would think that an end buyer would not put the same value on that type of 4 bedroom layout.  Run the comps on 3 bed vs 4 bed in the area and see what you find.  Keeping in mind that your house's layout as a 4 bedroom is less desirable so probably on the lower end, all other things being equal.  I would think that buyers in a yuppie area would place more value on larger bedrooms and more closet space, unless that is what's typical in that area.

Sounds like it's time to put your realtor to work on comps and get a few contractors through to get bids on each option to help make your decision.  My gut is that larger bedrooms and more closet space would be more desirable versus smaller bedrooms and closets in a poor layout.  Especially since some buyer will likely consider the walk-thru bedroom as unusable for a bedroom anyway.  The big kicker is whether you can swing the layout change at a price where it makes sense to do so.  Good luck!

I'll second @Bill Gulley .  Plan on building your own pro forma.  In my market it's the same way, very limited information on the listing.  Sellers want to make sure they have a serious buyer before they start divulging all their financials on a property.  And even then, as was already mentioned, you will have to sift through it to find out just how true the information that they give you is.

@Cecil Russell  I think if you are just starting out you should spend some serious time and energy focus on your “Why”.  Meaning why are you pursuing or drawn to real estate and what is it that you hope real estate can accomplish or provide for you?  You can spend a lot of time chasing a deal just to realize that it was not in line with your Why and you are not any closer towards achieving your goals (even though you will still learn from that experience).

Once you have discovered your Why, you will have a clearer idea of what your next steps should be.  I spent my first nine months (+/-) in real estate pursuing wholesaling and lease options with absolutely nothing to show for it.  Then I finally realized that building wealth and passive income through buy and hold was what aligned with my personal Why and that’s when things really started to happen for me.  I got focused on activities that were going to move the needle for me and I was motivated because I could see the dots connecting as I went.

It’s easy to feel overwhelmed with all that real estate has to offer so find the strategy that aligns with your goals so you can focus on that and not get burnt out.  Good luck as you continue on the road to you first deal and stay motivated!  Two months is a relatively short time to try to break into real estate.  You’ll get there if you stick with it and have clarity on why you’re doing what you’re doing.

If you are just starting out and looking to buy off the MLS you will definitely want to find a good buyer's agent to represent you, as they will bring a lot of value to the transaction. Pay attention and ask a lot of questions and you will learn a great deal. Finding one who understands investment property will be the difficult part.

To answer your specific questions:

1.) If you are buying of the MLS you will need an agent to represent you. If you are buying from a private seller you are able to do so without an agent.

2.) In general, you, the buyer, will not pay your agent's commission. Their commission is paid by the seller via a commission split (i.e. if the typical commission that the seller pays is 6% of the sales price, the seller's agent gets 3% and the buyer's agent gets the other 3%). This is fairly typical in most markets as far as I know, but maybe not in all markets. You can double check very easily by calling a broker's office. The only situation where you, the buyer, would pay your agent's commission was if you enlisted there services to represent you when buying from a private seller (i.e. a FSBO).

@Paul S. my municipality isn't quite as bad as @Patrick L. 's but it's close, $150 fine for city-order mowing.  It's definitely a little ridiculous but I enjoy the motivation it provides my tenants!  :)

And yeah, I think you could definitely make a lawn care business work at $150 a pop!

Dwolla is a fairly simple and very cost effective way to set your tenants up to pay online via ACH.  It's what I've just started using and the only platform I have experience with.

@Marvin Stewart One suggestion when you do need to turn the property over would be to use an ozone machine.  I do not allow smoking in my properties but I've bought several fixer-uppers that were previously smoked in and while they were being rehabbed we ran the ozone machine.  They have worked wonders in my experience and have saved me a lot of money vs having to use an oil based primer to cover up the smell before painting.

Good luck and congrats on getting your property rented!

I second your argument @Patrick L. 

It's much easier to find and train tenants to handle it themselves than to run a lawn service company inside your REI business.  Subbing it out to a third party still takes up your time and is one more bill to pay.  Even if you could justify providing it with increased rents (which I personally think would be a far stretch), it's not going to be a profit center.  Extra effort on your part as the owner for a break even venture? No thanks. 

The only argument I can see were it would make sense would be reduced vacancy.  I don't see it correlating in my market but everyone would have to make that determination on their own.  I asked several other landlords in my market when first I got started so I could make an informed decision.

My tenants are responsible for keeping up the yard at all of my properties. It's pretty much expected in my market that the tenant will be responsible for taking care of the lawn in a SFR. I've never had a tenant even question it.

As far as making sure they keep up with it, I just emphasize it when signing the lease and remind them that any fine from the city will be passed on to them, per the lease.  Also, in my municipality, if it gets too bad the city will come out and mow it and send a nice fat bill for doing so.  A reminder of this usually gives lazy tenants the motivation they need if they are slacking.

Hey Anthony,

I'm in the same boat, getting ready to start looking for one more property to pick by the end of the year.  I just finished the rehab on my most recent purchase and got it rented so I haven't really ramped up my search yet to have any potential leads. 

If you are able to get 30 year fixed financing, I would lean towards a multi-unit just for the sake of maximizing the number of units you can acquire with your ten fannie/freddie loans. That being said, in Decatur, multi-unit properties are few and far between to start with and then trying to find a good one out of the minimal options is very tough, which is why my last four properties I've picked up have been SFR. I just can't find a multi that can compete with the cash flow of SFR without making huge sacrifices in neighborhood.

Champaign-Urbana is definitely a different type of market than Decatur so I'm not sure if you will find the same thing there but just my two cents on my market.  Not sure how seriously you are considering buying outside of your home area but if you are I'd be happy to provide more insight on Decatur.  Price point will likely be lower here for similar quality/neighborhood houses so just something to keep in mind if that plays into your situation at all.

Good luck on finding your next property!

Jeremy