All Forum Posts by: Erik Sherburne

I've struggled with that question as I put in offers and get outbid or don't offer properties because they don't meet my criteria of making enough cash flow. So should I stretch for a higher priced property? Pay more for a property? So I look to the COC return and make my decision from there, plus one of my big factors is, does the property have a differentiator - I consider the biggest risk to be not being able to rent it (not a novel idea).

Soo to answer your question can I go with the ambiguous - it depends?

@Pradeep C. those are most of the questions I use as "starters" and make it a conversation from there.      

I've had good luck with Craigslist but part of my system is to start with the email screening.  When they show interest (respond to the ad) I have them answer questions to make sure they aren't a bot/scan/lookyloo:

-When are you looking to move?

-How many people are going to live with you?

-Is your monthly income three times rent?

-Can you afford to pay first months rent and security deposit at lease signing?

etc.

This lengthens the screening process intentionally.  It helps your vetting and it shows them that you are serious and know what you are doing and won't just rent to anyone.

Good luck!

(Sidebar: I actually had renters tell me that Zillow is good too)

Listen to the most recent podcast with @Scott Trench.  He talks about dollar cost averaging when buying properties.   That totally made sense to me, the way he framed it and gave me new perspective. Paraphrasing:  Buy when the market is up, down, and neutral, continuing to add to your portfolio - same way you would DCA with stocks.

(loosely related)

I just "lost out" on a deal.  I made an offer, got countered, made my "best offer" and they went with the other buyer.   To learn from it I have reviewed the numbers to see if I should've gone higher.  To do so would have gone against my criteria.  Emotionally I disappointed because I really liked the place, but as an investor I'm proud of myself for remaining disciplined.  

Yeah the market is highly but there are still deals that work.  Be patient.  Set your criteria and go for it!

Well said.   And I suppose that it is attached right to the place helps the cause and they aren't wondering through other hallways.   No elevator but it is only one flight

As a tall person (6'4") I agree with the community and also consider that with each generation  is likely to get taller so your pool of people is reduced even more in 10-15 years.

Any feedback from the community about properties where the tenant would have to go up steps right away?   I have a property where the numbers look good, but the townhome is built on the garage.   They park then have to go up steps right away.  For some that appreciate the immediate exercise it isn't a big deal, but it does immediate limit my tenant base to those that can take stairs.  The bedrooms are up another flight of stairs.   

What about a primary residence turned in to a rental property then sold?

Good people of Bigger Pockets-

I'm looking to add another property to my investment portfolio. My strategy at this time in my life is low maintenance properties (condos) and it has worked thus far (I have 2 condos plus our previous SFH that we kept). The numbers work on one I am looking at however in talking with the management company over half are owned by investors, with over 30% with one "entity". Should I be concerned?

Thanks in advance for your time!

-Erik

Great timing, I just got my third property and am working on the listing now!   Thanks for the guide!