All Forum Posts by: Dustin Beam

Thank you, and yes I agree. I couldn't think of any reason I could get in trouble over it, but thought I'd pose the question. 

So this is the second time I've been asked this, so it may be common for school districts in my property's area. Not to mention, I know that the school district divide is very, very close to my property.

Anyway, I have a tenant that previously lived there with her child. She got married and I'm guessing her wife has a child also because I'm being requested to provide a letter stating that the two children live there. She told me she had a spouse moving in, so that's not an issue. I also don't have problems if a new child moved in too.

My question is whether or not the tenant simply telling me another child is there is enough for me to write a letter about it? This doesn't seem like that big a deal to me, but don't want to get into any "trouble" by overlooking anything. 

I don't have any reason to distrust this tenant BTW, just wouldn't have any idea how to verify a child is living there or not.

 That may be too. I'd say the exact thing to a manager as I do my contractors: "I won't tell you what your time is worth".

But since I manage my own at a small scale, I have some idea. From the threads I've read, there's lease up fees, re up lease fees, extra fees for contractor work, fees for collecting late fees...to the point that I'm not sure what the 10% is for. But again, I don't tell people how they should determine their work's value. I'm just hoping I can handle it until I have a salaried employee at a fixed cost to handle the busy work.

 That's not at all what I said.

They moved pets in without following the rules. That's cause to evict. You also may be able to reason with the other tenants. They are going to be paying half rent instead of 1/3 soon enough. They may be willing to pony up his rent to avoid an eviction on their record.

I'm small enough to self manage, but I don't like hearing extra fees like these. From my perspective, you pay 10% for doing nothing more than cashing rent checks. Then extra fees when actual work is involved. 

Seems like the 10% would be  paid to deal with the headaches, but in reality it doesn't seem so. You pay 10% for the good times an extra for the headaches.

However I know managers essentially become a necessity. My goal is to hopefully self manage until I can hire my own manager as an employee. Ideally that salary would be closer to 5-8% of the rents. Time will tell if that is feasible for me.

I have them and got that letter. They were inherited so to speak, so I haven't signed anything with them. I need to review their terms

I wondered that too, but I'm thinking he meant $750k?

You're probably mostly right about that. When my property got appraised, they used both comps and income to evaluate (they are fourplexes).

However, I bet if you spoke with a broker that didn't mind sharing, they probably have a good idea what the cap rates are in your area. So if you know what you can get your rents to,you can find your ARV. Or a good approximate anyway

This is what cap rates are for.