All Forum Posts by: David Moore

@Max Peterson

I think the 50% rule is a good tool for analysis, but it is a bit on the unrealistic side.  I don't invest in properties that only get a 1% return.  There is not enough there, there.  

@Nathan Platter

I checked out marketplace, and all I see are a lot of old, outdated ads.  

@Tony Kuschel

I am hosting our first West Metro meetup in one week.  It would be great if you could come.  Check out meetup.com for our group.  I saw your comments about St. Cloud.  While I've seen a bit of multi's coming on the market in St. Cloud, it is not the area I invest in.  As recently as 18 months ago, a good looking 8 plex came on the market in Shakopee.  I think Shakopee is a great place to invest, if you can find a property.  My personal opinion of St. Cloud is to consider that enrollment in state colleges have been on a decline recently.  I think there is some risk  there.  And rents in St. Cloud are not as good as the metro.  

Read J Scott's book on Flipping Houses.  It is good at helping you find your key acquisition market.

@Erik Sherburne

Good comments on this thread, but there is another play.  The value add play.  Let's say you come across a duplex that based on current rents, is $200.00 per unit below market.  And a four plex same situation. Same value add, right?  Not necessarily.  For instance, in a duplex, it is not hard to imagine separated utilities.  But in a four plex, in nearly all the owner pays water.  In a duplex, I would assume you would have washer and dryer in each unit.  In a four plex, a common area pay washer and dryer.  By separately metering water, and having a washer and dryer tenants pay for, the extra income is tops for the four plex.

In a four plex, you also may have two added garages.  It gives you another revenue play...charge $50.00 a month for the garage.  

The more doors you have, the higher the exponent on the value add.   Also, in the Twin Cities, the ratio of duplexes to quads is staggering.  Four plexes in the metro sell at a good price.  They are close enough to commercial to be marketed as such, even if comps are still a factor.  

I will only look at duplexes if it is a screaming buy.  

@Patrick C.

I have one property with a section 8 renter. What is not commonly known is that some section 8 applicants work, but just have an income below what is needed to support their family. My section 8 tenant gets about 25% of her rent paid for by HUD. She is a great tenant.

I screen her just like any other applicant.  The prior landlord, who I know a little bit, told me she was a good tenant, and she had been there over 4 years.  Just check them out.  

@Amie D.

First, I've read through most of your posts, and to me, you sound like you know quite a bit about real estate.  I also will adopt the excellent suggestion of the $75.00 fee for not doing a showing.  I disagree completely with @Nicole A., on showing the unit while still occupied.  The best tenants you can get are ones that plan ahead, have a checking account, at least ok credit, etc.  But a planner, someone who is looking for a place and can coordinate it two months out is a good tenant to get.  

You are not wrong showing it.  But I have a couple suggestions for you.  First, why not do this in South Bend?  Been through it, you've got a major university in town, and it's a nice town.  You even have a Costco, though getting there was a hassle.  To me, I think you've got this...get rid of the PM, and do this yourself.  Manage it yourself.  Instead of a PM, find a realtor in Kentucky who will show it.  Give them one month or 1/2 month rent to find your tenant.  Many realtors have an existing list of potential tenants who are already vetted.  This is how I fill.  When your realtor shows the property, assure them your team will make the place rent ready.  Ask the realtor to set this up.  

Collect the monthly rent through Cozy.  Build relationships in Kentucky, especially with a good realtor, who owns rental property themselves.  I have four properties 100 miles away, and I fill vacancies through a realtor.  Works very well. 

@Kyle Baron

Don't do this on your own.  Farm it out.  PM me and I will give you the number of a company I hire for such things.  However, one piece of advice.  Send them a notice that unless x is paid by date xyz, you will file for eviction.  You may see some movement.

@Brad Schaeppi

Will you share on this board, or PM me what your flat fee is?  While I do have a company that does this, I'm always looking for other options.  

Hiring a lawyer is just too expensive for most tasks.  The profession needs to identify some level of legal practitioner closer to $100.00 an our, than over $200.00.

@Kyle Baron

Definitely evict.  I have the number of a company that will do this on your behalf.  Your situation is more difficult, I understand, because you live next door.   Also, I've heard the same scam about Hennepin County Emergency assistance.  Doesn't make sense that they would pay for Anoka County residents, now does it?

@Heidi Pliam   I certainly hope you are wrong and Hennepin County sticks with housing court.  The sheer caseload there makes it highly necessary.  Not too many investors can easily afford an attorney to represent them.  

@Maria Walker

We are starting a new West Metro Meetup this month.  We are on meetup.