All Forum Posts by: Dan DeMott

Hi @Nathan J. , 

I totally agree with your thought process, but it has become very common for property managers to have additional charges for tenant placement and renewals. 

As an investor myself, when I started my property management company I wanted to change the compensation structure to be better aligned with my clients.  I recently wrote an article about this very topic, you can read it HERE.

Hopefully more investors will educate themselves before hiring a property manager and understand that they can, and should, negotiate the property management contract to better align interests of the manager with their own.

Good luck!

Hi @Rocco Grossi ,

Welcome to BP. You will find lots of great resources here. 

Buying a duplex to owner-occupy was my path into real estate investment and one of the best financial decisions I have made. Since then, I have been able to utilize the savings to buy additional rental properties. 

If you need any advice, feel free to send me a message.

Good luck and keep us posted.

@Ryan Tyler welcome to BP. I am just up the road in Boynton Beach/Lake Worth. 

I started with an owner-occupied duplex and it was a perfect stepping stone to real estate investment. 

I would highly suggest utilizing the resources on BP to learn more about financial analysis (running the numbers) so you can understand what you're looking for. After that, get in the car and see some real estate. 

I am always looking for opportunities to meet for a lunch or coffee (lots of great spots in Delray). Send me a message and let's meet.

Good luck and keep us posted.

Hi @Alma Ferrer , I'll send you a message. Would be glad to help you with your analysis.

You should also review this article from BP - http://www.biggerpockets.com/renewsblog/2014/09/28...

Hi @Joseph Jackson ,

Great post and topic. Your line of thinking regarding how fees incentivize your property manager is spot-on. In fact, I just wrote a blog post about this very topic

HERE: One Key Concept for Hiring a Property Manager

Give it a look and if you enjoy, or have any other thoughts, please leave a comment. 

As a property owner, you have every right to question all of the fees you are being charged and negotiate them.

Like @Dawn Brenengen , I own my property management company and have decided to make my pricing model different. I own investments for my own account and knew what I would look for in a property management agreement. 

If you are looking to replace your manager, I would certainly suggest considering independent real estate professionals who may have greater flexibility to adjust pricing and service to your expectations.

Good luck, and keep us posted.

Hi Jacob, 

Welcome to BP. Lots of great resources here, be sure to click on the "Learn" button at the top and review some of the materials. 

I got started by buying a duplex in which I owner-occupied one unit and rented the other. After that first buy, I took the savings created by not having a rent payment and bought additional small multifamily properties when funds would allow. 

I continue to build my portfolio now, though more of my resources (time and money) are focused on growing my property management company. 

What are your RE investing goals? Share some more about yourself. 

Hi @Carlton Kohler , this was my path (FHA instead of VA) into owning investment property and it has been a huge benefit for me.

When looking to owner-occupy a multifamily property I would be sure to pay particular consideration to the unit types. You will want to be comfortable in the unit you choose to live in and the other unit(s) should be desirable for tenants you want as neighbors. 

The townhome question will come down to the numbers. You need to look at the HOA fees (and what services they include) and compare those numbers to the non-HOA properties you are considering. There are some great analysis spreadsheets on this site that will help, or send me a message/email and I will gladly share mine.

You should also familiarize yourself with the HOA documents and determine if there are any restrictions on rentals and what, if any, oversight the HOA has on tenant approval.

Good luck, and keep us posted.

Hi @Bob Lowry , I also started a property management company after being dissatisfied with the service I was receiving from PMs I had hired. The more investors that become PMs, the better reputation we (as PMs) will have. As you said, the key to good management is helping your client reach their investment goals; including cash flow, asset preservation and value creation. A good PM can easily create more value for their clients than the cost of their fees, over a reasonable period of time. 

As @Account Closed mentioned, I think professional communication and transparency are top characteristics for a property manager. It is shocking how many people in this industry struggle to return calls and emails to their own clients. 

I just did a blog post on One Key Concept for Hiring a Property Manager - https://www.biggerpockets.com/blogs/5644-rentpros-...

I welcome your comments or feedback. Let's keep in touch and Good Luck!

Hi @Trey H. he is an expert in your market and always has some interesting properties. In fact, I think he has an off-market triplex right now that could be interesting.

Good luck, and keep us posted.

@David Rodas , welcome to BP and real estate investing. 

Have you considered buying a duplex or triplex and living in one unit while renting out the other(s). Owner-occupied multifamily properties (2-4 units) can qualify for FHA financing and be purchased with limited down payment.

That's how I got my start in real estate investing and it was one of the best financial decisions I ever made. I have lived (nearly) rent-free for 4 years and the savings allowed me to buy other investment properties. 

Feel free to send me a message with any specific questions. Also, always glad to meet for a lunch or coffee. 

Good luck, and keep us posted.