All Forum Posts by: Devin Slone

 Sorry Devin, I'm not great at getting on here and updating - it's going well! The next one is 11/9 at Oscars 5-7pm. Come by if you can!

 Hey Devin, going great man! Like David said, I also don't get on here to check my notifications very much. I am swamped right now with my rental renovations & furnishings I am finishing up plus I typically work late, so I haven't been able to make it much lately. Either way, it is a great group of guys and you should come to one of the meetups if you can make it. 

Find an agent that deals with 2-4 unit investment properties. 

Understand 95% of agents are clueless about how to work with investors.

If you know an agent, see if they will search MKS for all 2-4 unit sales in last 12 months, with listing & selling agents, in a csv file.

Then you can sort by agents on both sides of the transactions to find the ones that have listed/sold multiple 2-4 unit properties. These are the agents you want to network with. They may be also willing to connect you with other investors they know.

If you don't know an agent willing to assist with this for free, you may need to offer a few hundred dollars as an enticement.

@Devin Slone you should still be able to use your network (or learn how to develop one) and knowledge to find a 2-4 unit in an area that is acceptable or improving. 

@Devin Slone, given that you're still in college, house hacking your first deal should be your top priority. Read, "The House Hacking Strategy" by Craig Curelop to understand the concept. House hacking from one property to the next is a powerful momentum builder to scale your portfolio. Do not undermine this strategy. 

If you can't find a deal in a good location in your hometown, then how are you going to find one OOS?

 @Devin Slone

Buying local is so much better than out of state… if for nothing else because you can manage your rental yourself. Property management costs you 10% of your GROSS rent.  You can’t emphasize enough how big a deal that is.  On a financed property that likely represents an extra 33% profit per month.  So $300/month instead of $200 on a $1,000 rental.  That’s an extra $1,200 a year you get to keep!  

We self manage 37 rentals.  Granted, it’s our full time job… but even with 37 we seldom have more than 1-2 tenant interactions a week.  So you can extrapolate what that would mean for 1-2 rentals.  

Understand that your location is not about what it looks like. It’s about how well it rents.  Almost all our rentals are C+ class rentals.  Few are in stellar areas.  But for where they are at, they are fine.  

Your focus should be on profit, first and foremost.  Obviously you don’t to be in neighborhoods that that are D class (drugs, dilapidated, dangerous, etc.  but after that, it’s about profit.  Profit lets you keep your unit.  It lets you repair the unit.  It makes you want your next unit.  Without it you are spinning your wheels maybe trying to wait for appreciation.  That can be a tough ask if you are barely breaking even.  

So buying locally gives you a huge advantage over out of state, plus it makes you a better landlord.  You can do silly repairs yourself… like figuring out the batteries in the thermostat are why the AC won’t turn on; that it was a tripped circuit breaker even though they swear they checked them.  All those little things cost you hundreds of dollars in unnecessary repair costs when you own an out of state rental. It will also help you in dealing with a property manager if you ever go that direction.

Hope it helps! 

Randy