All Forum Posts by: Jason Snider

Agreed that best case scenario is to have the tents pay as many utilities as possible however we have a good portion of our portfolio on ‘All bills paid’ and they are great cash flowing properties. The key is to make sure to build projected worse case scenario utility cost in when setting monthly rent.

Hi All,

At some point in time I remember someone posting the verbiage used for an email to a seller when making multiple offers on a property.  I think it may have been Brandon Turner in a podcast but do not recall and cannot locate.

I am making 3 offers on a 4 plex.  A cash offer and two different seller financing offers and looking for some friendly verbiage to explain and present the 3 offers.

Thanks for your help.

Jason Snider

I invest in lower end areas as well. I have done well turning 2 bedrooms into 3 bedrooms. Sometimes we turn dining rooms into bedrooms. Other times we turn a finished room in the basement into a bedroom by adding an egress window. I have found the key is going from 2 to 3 bedrooms. If this is not the case, a finished basement is not worth it. Buy cheap 2 bedrooms. Turn it into 3 bedrooms...That is the key.

Any thoughts on using an LLC to set up a lien on the property in essence the LLC will offer you a HELOC or just a loan on the property as a junior lien holder? Then when refinancing the new finance will pay off the junior lien to your LLC. I haven’t done this so I do not know the legalities. Just something that came to mind to get your liens on the property over the threshold you are looking to get cash back out.

Anyone have any luck making direct withdrawals from welfare, social security Ect? Seems like this option would allow us to qualify more tenants, for example if they have a long standing job or social security but poor credit.

Kenneth N. Brown , thanks for sharing. I also invest in a low end area, C- area and self manage the properties. Some of the better areas of Flint, MI. We do stay away from most of the war zone areas. 80% of our properties are rented to section 8 and other government paid rents. We have a few self payers and believe it or not they pretty much all pay on time pretty much every month. Some luck, some good screening. Your plan to get rent deductions from their paychecks is fantastic. Any additional info you would like to share on this process would be greatly appreciated. Do you have a standard form they bring to their employer?

I say good debate question. Your numbers look very similar to what mine do monthly. Similar 30-40k properties. I agree that it may not be worth the headache if you only have 1. Key in these areas is to have a lot. That way when repairs pop up there are simpler answers because they are expected and more frequent. I have grown from 1-28 doors over the past 1.5 years and the problems have gotten easier to handle as more contractors with specialties come into our radar. So my suggestion is if you have one and plan on keeping just one maybe sell. If not use this one to find a good reliable plumber so the cost is not so high and next time you know a good plumber.

Definitely talk to other landlords. I went to a local landlords association a couple months ago. Met an insurance agent and he has written all my policies saving thousands. I have found that most insurance agents do not specialize in investment properties. Find a good one that does. That is one of my lesson learned over the last few months. insurance is one of those things that seems like it is good habit to shop around every year or so.

Does anyone have advice on what number of doors it is important to move to one of these platforms. I currently own with a partner and self manage 28 doors in a lower income area with probably slightly higher than average service calls, although not by much. We offer higher than average quality rentals in the area. I have planned to double in 2019 and keep going from there. My background is Realtor for 20 years now but moving more into property management within the last 1.5 years during the time I have accumulated the rentals. Plans for 2019 also include better systems. If all goes well maybe take on investors in 2020-2021 and syndicate going forward. At this point I am managing with spreadsheets for each property, rent rolls, and calculations on returns. The issue is each month I am spending more time placing invoices, pictures, and other documents in folders, all which could and probably should be automated. Although reviewing these items keeps me up to date, it may be time to move forward. All aspects of the rentals are going well and cash flowing good but I feel I am going to hit a ceiling shortly continuing in this manor. I have thought about Stessa and also looked into rent manager. Very different cost basis. Does anyone have any other suggestions or comments on these two based on my comments and personal experiences.

I used to lean toward the no charge-help someone out strategy however I have learned that does no good. I have been taught through experience over the last few years that this only encourages repeat behavior. Last call I received section 8 tenant was in jail. Jail lost his keys and did not return when he got out. (Who knows). He did not have the money to pay the $20. Finally 2 days later he arranged for his mother to pay and I dropped the keys off to the hospital where he was at the time. (I do not know the back story). Point is he has to go to his mother for the $20 which might encourage him to be more responsible next time. Sounds harsh but helps teach a lesson. I’d rather charge the $20 and donate it back to a worthy cause than encourage repeat bad decisions.