All Forum Posts by: Chris Stromdahl

I am going to need to raise the monthly rent on one of my properties this year.

How much up front notification do I need to give my tenants? 2 months, 2 weeks, etc?

What do you think about using email to notify, as long I request some sort of response/acknowledgement?

Thanks, Chris

I don't know anything about the connection costs, but the numbers look good at this point.

Using the 1% rule as a proxy, the price range should be around $410k. It's not a hard rule but does put things in perspective.

Older unit = maintenance and updating 

Those taxes are definitely going to reduce cash flow.

What is the asking price?

What is your exit strategy? Rent or sale?

What is the cost all in?

If rent, what is the monthly rent ratio?

If sale, what are the comps?

For both, will this project create the returns you want relative to the work?

Why are you choosing to go this route?

@Brandon Schlichter

And that is exactly what I found to be the case. 

One factor that I do think needs to be taken into account with my experience is the property management firm I was working with. They definitely wanted me to focus on the greater Columbus area focusing on specific school districts. 

As real estate investing is somewhat personal and relative to the individual, I put heavy emphasis on working with a reputable property management firm, and sometimes cost comes along with that.

In the end though, I think that I analyzed enough properties for myself to be sure of the market in terms of whether I wanted to invest there. And, I made a decision not to.

@Brandon Schlichter

Everywhere besides the southeast.

I analyzed about 100 properties.

I think if you are living there and can self manage, it would make sense. But otherwise between the cost of the property, taxes and PM fees relative to rents it just did not make sense. I looked at Cbus, Indianapolis, Baltimore, areas of Tennessee. 

The risk/reward was not high enough. 

It's all relative though. I settled back in WA, starting my portfolio by buying two SFH in Tacoma. Now that I know Tacoma personally, I know it works. That may be the case here.

Remote investing is always an option, but if I'm only going to cash flow $200 on a $150k house, or even a $70k house, I can do that closer to home. 

I looked really heavily in Cbus about a year ago. My experience in general was that you could buy more house relative to the greater Sesttle area, but the property taxes killed cash flow. Plus, you have the cost of a property management company which reduces it even more. For me, the returns didn't substantiate the  investment.

yes, that's correct 

I would buy in hilltop all day long. I own two sfh south of 56th. The only area I don't like is the western part of pioneer, near the casino.

Other than that, it's all relative.

@Rob Currie

Reserves are definitely a good idea. My wife and I shoot for $5K per unit. There should be, but is no rhyme or reason for this amount. It is what we are comfortable with.

But, if you leverage the VA for a house hack, put enough away to be comfortable in terms of reserves, you can use a conventional loan plus down payment for your next property.

I work with a loan company that will allow for 15% down if you qualify based on your income and credit. You might even be able to use them to facilitate the VA loan which would help in them facilitating the 15% down as you would be a repeat customer.

If you're interested in talking to the loan officer, private message me and I will give you his information.