All Forum Posts by: Blake C.

What kind of things are you needing done. Scottco isn't cheap, but they tend to do quality work. Ive used them before, but my feeling is I could have got the work done cheaper with a smaller crew. I have a landlord friend that has uses Perry Hawkins at 806 674-5442 and really likes him. I haven't needed to use him yet to verify this. There isn't many of Amarillo active here. Best of luck.

@Jason L. Hey i thought this link might help you as your seeking valuations. Shawn is a local wholesaler. Right now he doesn't have any multi properties, but at times he does. He has stuff all over the city. I figured this might help you get an idea of prices. I don't see anything currently thats a home run, but its worth looking at. If you talk to him, let hime know I sent you. He is a buddy of mine. He's fair and honest. In fact, the last rental I bought was from him.

http://www.amarillowelcomehomes.com/page05.html

@Jason L.

What I know of the area and can see online says most the the properties in this area as "class C." Typically I have been able to find properties on the low end of class B that meet and slightly exceed the 2% rule. I have avoided this neighborhood in town because the hassle factor (lack of payment, vandalism, and tenant turnover) tends to be a little higher than I would prefer. If I was going to invest in this area, I would want to cashflow more than the numbers you posted to get me motivated to do this deal. I would want this one to exceed the 2% rule to get me engaged.

With all that said, I know some very successful people have been able to do well in this area. The numbers work on this one, but for me, I would like for them to be sweeter to get me rolling on this deal. Therefore why not shoot a low number and see if he bites. I saw on zillow that the current owner has two other homes near by that he is also wanting to sell. PRAD shows he has owned them for a while. This means he likely has a good equity position and might just be looking for an easy exit. Figure out a low ball offer that works for you and swing. Worst he can say is no. I wise investor once told me, "if you aren't embarrassed off your offer, its too high."

Rick Reed for what it's worth, going for a long term hold in the $170k range in that area is going to limit you cash flow. I'm not suggesting you get super low end and become a slum lord, but I would suggest expanding your area to find a property that's in the 80-120k range. You can likely beat the 1% rule and find a quality tenant that is unlikely to be tons of hassle. While 170k is the price of homes right where you are at, start looking in the same place the guy who makes 40k as a teacher who wants to live near you would look to buy his first home. I used to live in Colleyville. We didn't buy there because of this. We bought in Hurst 8 miles away. This might increase your cash flow and Capitol investment issue. Instead of a heloc, have you considered a cash out refi on your house? The rate would be low and have little restrictions against how you use the money.

I found this older thread and I was wondering if anyone has a solid answer to these. There are two properties in my area listed like this right now.

Originally posted by @Elizabeth Colegrove:

@Blake C. There is no need in my market because everyone kind of "expects it". Most of my houses are "pre-rented". Therefore my tenants were shown in the house by another tenants and so it continues.

You make some great points. Every prospect expects to view one if its occupied. When they do that, I will make sure to communicate that we do it in as gracious and non-invading as possible, but that they will likely be on the other end at move out. I think expectations play a big role in this business. Creating the right ones can pay big dividends down the line. Thanks to everyone for the advice. I might need to give a small incentive to those that didnt view a property like this since the expectation isn't set, but with future tenants, I can refine my process and eliminate the need for this in the future.

@Roy N. I was talking about an incentive to exiting tenants to aid in the process of securing new ones. This would help them leave the house in great condition, put the word out with high quality friends, and working easily with showing times. To me, its part of the value proposition your talking about. Getting them to do the above is a hassle that to me is above the norm. Many landlords just prepare and show it while vacant. Therefore a small incentive $100-150 could help add value to the tenant for this very valuable benefit to the landlord (no/limited vacancy). It seems that many landlords here have varying opinions on this incentive.

@Roy N. do you accompany that with an incentive program?

@Bill S. You have made some good points about the open house vs. scheduled showings with respect to occupied units. Open houses have been gold for me when I need to get in and do work to a property. It has allowed me effectively manage my time and pulls in a large number of tenants. Filling occupied units is going to take a different strategy. My tenants might have been more adapt to view scheduled showing as favorable over an open house. Thanks for the head start and insights on developing that.

@Bill S. You opened my eyes with the window shopping concept. I have done open houses the month of. This is where I'm getting my viewpoint of my area's tenant pool. I have experienced some far out window shopping via emails in Craigslist. I haven't been able to lock any of them down as sometimes I didn't market far enough out, or just didn't get the right tenant. My houses are recently remodeled and therefore already appeal to the best tenants of the area... but its still not a class A area.

Would you mind sharing some of your marketing plan? May be this is where I need to add in something along with expanding my move-out notice to 45 days.