All Forum Posts by: Jeff Schemmel

@Michael Di Giovanni it might help if you elaborate on what you're referring to.  What exactly are you looking for in a worksheet?  Deal analysis template?

choose at least 3 lead gen activities that are free and block two hours every morning to do them.  Do not do showings, look at social media, or set up meetings during this time.  Do it every day, track it, and stay consistent like your life depends on it.  I didn't do this until over a year in (i still struggle with it), and I experienced some real highs and lows that got to me, mentally.  Staying consistent will keep the leads coming in a steady stream and avoid you being rich and poor and riding a wave that's out of your control.  Whatever # of leads you think is "enough" triple that :)

being greedy is never a winning prospect, and will not make you friends in this business.  along with that, those friends are what will make your business over time.  Without the friends I've made, and helped, I would have floundered when things got tough and I needed help.  Anytime I feel myself even being a little selfish or even thinking a selfish thought I think about this.

Just came here to say you should tap your investor-sphere for lenders who are also investors to get direct and specific answers to these questions.  Even if I were a lender, I don't have the information needed to answer your questions with what you provided - I know because I just had this conversation with @Tim Swierczek literally a day ago and I look to him for answers to questions like this directly because I know he's lived it and we can talk directly about my property and my financial situation.  

Aside from that, I would take a hard look at your return on equity for each asset and let that be the deciding factor.  If that is still high, and higher than you'd get with another acquisition, then maybe being patient is worth it.  There is such a thing as being over-leveraged, and as you said your cash position is a bit limited having just acquired two properties.  I certainly understand the drive to acquire another property, though, I think that just never goes away.

Well, if you don't need the cash for DP then your mom taking a HELOC shouldn't make much of a difference. however, she could act as a co-signer for you to get into your first deal. This is possible, but you'd need to discuss it with your lender to see if it would help you get your first deal. a HELOC could provide additional cash for you to invest together and put some sweat-equity into your first deal OR to help you be more competitive but I would try to do your first deal without someone else's money if you can :)

 I don't know if I agree with this statement even though you emphasized "usually".  I just think it's the wrong sentiment to have about people who rent.

that aside, I have personally experienced a few of these things as a landlord and as a tenant and have had to pay for the resulting consequences as well.  Here are some steps I took:
1.) i use stone countertops because the laminate ones are just so easy to ruin.  I try to invest in an option that is heat resistant.  Some might say this is unnecessarily expensive, but they are almost guaranteed to be ruined quickly and I don't feel like taking extra vacancy during every turnover to have it replaced every time someone snags something and snaps it off or cuts on it with a knife or sets a hot pan on it or stains it with spices. 
2.) I take every opportunity to replace failure points with plumbing.  shut-offs, hot-water supply lines, and toilet internals.  That stuff is just so easy for a tenant to neglect and I don't skimp.
3.) I chose to avoid garbage disposals altogether for similar reasons to the fridge ice maker, and I also chose not to put a dishwasher in the upper unit of my duplex because I want one less failure point for water intrusion and I didn't need it to have a competitive rental in my area.
4.) I chose an LVP with a decent wear layer.
5.) the exterior of my duplex does not have a water spigot, so no tenant can go crazy watering anything or cleaning cars all the time on my dime (for example).

that are a few things I can say helped me.  I can't really recommend paint, I just assume I have to do it no matter what, although I tend to not cheap out on paint and I offset costs by doing that stuff myself.  I don't have a ton of units at this point so it's not something I have viewed as time-taxing yet.

I wouldn't see this as a deal unless there was explicit agreement in the purchase agreement that the seller would non renew the tenant, clean the unit to your expectation, and the unit will be vacant on your closing date.  I especially wouldn't see this as a deal if I didn't have to cash to deal with the problem myself.  I don't know many people who would want to inherit a tenant like that even if they did have the cash to take the risk.

In any case where I write a purchase agreement for an owner-occupant client, I always (always always) make sure that the purchase agreement says the unit must be vacant and free of owner and tenant belongings.  If the seller sees that as a problem, or takes another offer as a result, it is what it is because you as the buyer need to be protected from risks like this.

Hey @Cody Turner you're in the right place.

1.) look for a local lender who's also an investor and have a conversation about what your goals are.  repeat this until you find someone you think is a good match for you that has started and scaled a rental business themselves. 
2.) repeat step 1, but instead find a local realtor who's also investing in some capacity.
3.) learn how to analyze deals in your market, attend local meetups and meet other investors like your life depended on it and run your analysis by others who are investing like you want to.  they will help you refine that analysis to the point where you can trust your own numbers and you will learn to spot deals in neighborhoods where they make sense.
4.) Getting a 4-plex would be great, but don't get hung up on it or cash flow.  Focus on finding out what deals make sense in your area and after talkin to a lender find the best mortgage option to fit the deal that makes sense for you.  You just have to get a property and start, it doesn't have to be a perfect deal.

hope this helps.  at some point when you get your first deal make sure you upload it here so we can check it out :)

take a look at unfurnished vs. furnished rental demand, prices, and vacancy in your area.  I recommend utilizing rentometer for unfurnished, and Furnishedfinder or airdna for short-term, mid-term, or long-term furnished rentals.  If cash is no issue, It's probably worth your while to invest in some nice furnishings and connect with a local cleaning crew and turn that house into a sweet mid-term furnished rental you can rent out to traveling project managers, nurses, etc.  This assumes there's demand for it and that's what I like using AirDna to understand.

I suppose I should mention you should keep it and almost certainly it doesn't make sense to sell.

edit: I should make the obligitory "research your local rules and regs around short-term rental restrictions or licensing requirements before doing this".  They will usually state how long a lease must be.  just work around it if there is something.

I never drive buyers around in my own car.  they always drive separately so I just text them the address and we just meet like we would a showing.