All Forum Posts by: Detra Harris

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $95,000
Cash invested: $35,000

Simply lovely, remodeled condos - 3 bdrm, 2 baths, refinished gleaming hardwood floors, kitchen w/ loads of maple cabinetry, black granite countertops, black stainless steel appliances. Granite top bathroom vanity, Master bedroom has a glass-enclosed shower and walk-in mirrored closets. New window treatments, in-unit laundry, central air, secured off-street parking, storage locker in-unit, and lots of space. Near the New Obama Museum!

Wow, what a great conversation. Lot's of good comments. I'm a native of San Francisco and I also live in the Bay Area, therefore, this is a hot topic for me. I purchased my first investment property out of state because of the price point here in California, which is often more than $800K for my asset class. I didn't want to bring in a JV partner on my first deal, purchasing out of state was best for me. It's very expensive to get in this game in California unless you have deep pockets or bring in a JV partner. It took me three years to afford to buy a rental property in California -- right here in my own backyard. It's crazy! Covid-19 is hurting us, several of my colleagues that own market rental properties in the Bay Area have reduced their rents to keep their units occupied. The vacancy rates are increasing daily and it's very scary right now. California is definitely tenant pro, which I'm in favor of, however, when analyzing a rental property, you better be sure it pencils and increase your vacancy rate 5% to 7% on your proforma to be on the safe side these days. Memoratiums have been extended up to another 90 days in many Cities, ouch. I noticed no one made a comment on @Jorge Torres suggestion to take a look at the Dayton, OH market. I've had great success with buying rental properties in Dayton, Fairborn, and Cleveland, OH. I love the OH market, obviously. Regarding hot markets, your experts report hot markets all day long and investors buy into it all day long. For instance, Columbus, OH is on that hot market list and now purchase prices have gone up. Listings last an average 9 days on the market then gone. This is typical -- whenever our experts report a hot market, every investor in town moves into that market and the prices go up. I own rental property in Texas as well, and the prices have gone up there too - I may as well purchase here in California. You gotta make sure it pencils in any market. I'm checking out Philly and Florida right now, thank you to those who mentioned these markets!

Hi Micheal, I partnered with a Broker to get started and obtained my RE license. I own and manage my rental properties as well, however, I still have the option of managing other investors' properties carried underneath my partners Broker's license.  I agree, check with the DRE to understand the requirements. It's usually standard DRE requirements, you will need a Broker's license to manage other investors' properties. The additional cash flow is great for investment purposes. Best of luck.

Hi JP.  I hope you found what you are looking for. It's been a few months. Joe and Stephen gave you some great resources.  You can also visit the Housing Authority website closest to the property location and you will find landlord requirements and responsibilities, AMI Limits, Rent Limits, and Utility Allowance requirements which are very helpful when qualifying section 8 applicants. More importantly, tips to be sure your unit passes the required inspections.  I have found great tenants when advertising on GoSection8.com, a great resource!

Hi!  The Money Talk Expo has been rescheduled to May 29, 2021, due to Covid-19.  We apologize for any inconvenience.  We will open registration on December 1, 2020.  We hope to see you there!  Stay safe.

Detra

My pleasure.

Hi Wadd.  This can get tricky depending on the age and condition of the property, none-the-less, I typically use 1 to 3 percent of the property value and 3 to 5 percent vacancy loss, depending on how long it will typically take to turn and rent the unit (according to the rental market).  If the property is occupied at purchase with a long term, good-paying tenant, I use a 2% vacancy loss.  I hope that helps!

Hi Tri.  When I first started out I used free software.  There are a few on the market such as Cozy.com.  You can google a few other software companies that are super easy and user-friendly for your tenants to use at no cost to you. Your tenant can pay rent online by cell phone or computer. The rent payment will go directly into your bank account within a few business days. Your tenant will have the option to pay by ACH or credit card. You can also use the software to track property expenses and maintenance requests. You may also want to consider establishing a PO box for tenants to send rents by check or money order. Giving tenants a few payment options makes it really easy to collect your rents.

Good luck!

Detra

For Sponsorship Opportunities & to Register Visit:

https://strivewealthbuilders.com/Events

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Dayton.

Purchase price: $136,000
Cash invested: $42,000

LARGE MULTI-FAMILY BUILDING. SPACIOUS 2 BEDROOM UNITS WITH LOT OF CHARACTER. EACH UNIT FRESHLY PAINTED, NEWER WINDOWS, ORIGINAL HARDWOOD FLOORS IN 2 APARTMENTS, 2 APARTMENTS WITH CARPET. 4 CAR GARAGE BEING USE AS ADDITIONAL STORAGE.