All Forum Posts by: Matt J.

@Jacklyn P., consider one other thing: Being a bit older gives you a unique perspective and you can leverage many years of life experience. I love seeing the drive of the younger folks, but don't discount having a few more years. It means you've had plenty of time to make and learn from a lot of mistakes. Celebrate yourself for going now!

@Jacklyn P., it's never too late, as others have said. The more you learn about different aspects of the business, they better prepared you will be moving forward. 

If I can offer one piece of advice, don't think of real estate investing solely as properties and deals. Often, it's less about the the physical stuff and more about the people. Some say people are responsible for 85% of your success. I believe it. Whenever you consider a new opportunity, think about all the folks involved in making it happen (buyers, sellers, lenders, brokers, agents, managers, renters, contractors, fellow investors, etc.) and treat them really well. They can be what makes or breaks your business. It's the Law of Reciprocity - you get what you give.

Best of luck to you starting out, whatever your age!

Thank you for the current market picture, @Tony Wooldridge! While the unemployment rate is a bit above the national average right now, job growth was over 2% last year, which is great. It's nice to hear your assessment supports what appears to be a trend. 

Have you noticed a change in crime? Some estimates indicate property crime was nearly double the national average last year. Often, this has a direct correlation to rent prices. Granted, it can be a neighborhood by neighborhood consideration, but how do you see it affecting the overall rental market?

Hello everyone!

Does anyone have a pulse on current Walla Walla, WA market conditions? Specifically:

1. Are property prices beginning to realign with rents?
2. Do you find the job market continuing to grow and diversify?
3. Where do you find the greatest need for rentals (2/1, 3/1, 3/2, etc.)?

Thank you for your input and insight!

Hi there @Nate Currier! We're looking on that side of the mountains as well. How did your duplex sell and where did you decide to transfer your capital?

@Jennifer Langford, 

We use VAs for other businesses and we have had relatively good luck. All of them are through Upwork (we no longer use the other main service for many reasons). If you do decide to give it a try, here are some tips:

1. Clearly define the role you need to fill.
2. Develop specific tasks for that role with an objectively measurable end product or goal.
3. Post a wanted ad on one of the gig service sites (you can use CL, but you have more control and recourse with something like Upwork). We always have them answer a series of questions when they apply. It weeds out the less serious applicants.
4. Thoroughly vet all applicants and ask for work samples (ad copy, graphics, research, etc.) and references.
5. Review the work samples to determine if they can accomplish your tasks.
6. If they will be doing phone customer service, schedule a call with them and have some relevant questions prepared.
7. Contact their references! This is very important and will help you gauge things like follow-through.

In your ad, make it clear you want to hire for an ongoing position. However, present the opportunity as a one-time gig so you can get to know one another in a work situation. You might want to test a few of them before you make a decision. Once you decide to hire for the long term, plan to spend time with them. The initial learning curve can be steep, but if you are clear with your expectations and they have specific tasks with measurable outcomes, it will make it much easier for everyone.

One final note, I am not advocating for hiring a VA as a property manager. They can be great for routine business tasks, but save general PM for the professionals.

@Nicholas Q., we have used VAs for other businesses and they can be a viable option, but there is often a steep learning curve and you need to be willing to let go of some of the control and accept a 'pretty good' job. Remember, they are not you, nor do they have as much vested in your business. 

Now, if you don't mind overseeing the operation, you can develop solid procedures and farm out very specific tasks to a VA. Just be sure to work closely with them until you are certain they can perform the task(s) reliably and to a certain level before you set them free.

All that said, it is doable, but I have to agree with @Mitch Messer. "...find yourself a good PM who aspires to be great and then shower your best ideas on them!" Truer words...

@Chris Reel pretty much summed it up. I would add: Consider working with a good attorney who knows how to properly set up these entities. As @Ned Carey mentioned, you can do it yourself, but it's better to have a professional work through it with you. The nominal fee you pay now will more than pay for itself in the long run - especially if a legal challenge arises. 

The others covered many of the considerations for STR, especially @Justin Tahilramani's comment about the legality. Keep in mind, some areas do not yet have laws governing this, but that doesn't mean they won't at some point - just something to keep in mind. 

Also, consider property management. There are services out there that can handle many aspects for you including: advertising, photography, bookings, renter correspondence, cleaning, etc. However, they typically run much higher than PM on a standard rental (think 15-30% of gross). Also, expect to be involved to some degree. After all, you're selling an experience, not just a place to sleep.

@Evan Wiesner makes a great point about buying both properties. It's a simple way of diversifying from the start. He's also right about tax ramifications. Those are certainly a concern on sale. However, if your end goal is buy-and-hold, perhaps that's less of a concern for you now. 

With my calculations, I always look at the cash-on-cash return as one of the main factors. It tells me how effectively I'm leveraging my own funds. Granted, we all want to find amazing deals where we can pull out our cash at the start and enjoy infinite returns. The reality is, you will probably need to keep some of your money in the deal for, at least, the near term.