All Forum Posts by: Wayne Kerr

There's a few guys I like to watch - Graham Stephen used to be a lot better - it's all marketing, they realize they make more money from the classes/mentorships/paid subscriptions than actually investing in real estate, so they go for the clicks and the views over everything else. 

That being said - I think there is some truth to the RE market dropping, we see it happening in real life (at least in my local area). Now I wouldn't say the sky is falling...for most people, but there's gonna be some people that lost big time buying at all time high prices (you just won't hear about them publicly)

I would suggest starting out by doing a little reading

This was just not a well thought out post by you OP

 This x100 

It's going to be making sure your deal has plenty of extra room and making sure you have all the desirable STR bases covered

 Same here - the competition from local investors and just regular people moving out and renting their old house out at opposed to selling it seems to really be increasing in my area. On top of that we have a few purely rental neighborhoods being built - I think one is 150 homes to rent between 1700-2100 with all the amenities of a nice neighborhood (pool, park etc). We have expensive homes being built and all the "cheaper" homes are becoming rentals. I think a lot of people don't realize what they are getting into. My neighbor actually bought his house for 189k, then put in new roof, driveway, gutters etc. Gotta be 210k plus in that house - I have rentals in the neighborhood that rent for 1100-1300. He will hardly be able to cover his mortgage. I bought a foreclosure across the street from him for 135k and put 30k into it (granite countertops, new flooring, big backyard shed etc). 

I see a lot of people just buying houses at market price then renting them. They are not good deals, not even close. 

Don't know how you can 100% blame the tenant for that one, I'd lean more towards the plumber honestly. He should have turned the valve off since the toilet was leaking. Good luck getting him to pay for it either. 

I had a plumber leave the bathtub faucet on and turn on the main water valve at the curb. The water flowed for I don't know how many days at 2gpm. I actually thought someone had broken into the unit - went to check on everything and heard water flowing in the sewer pipe down the side of the house. Had the police come over and clear the house so at least I wouldn't be the one plastering someone all over the walls. Long story short - plumber said it wasn't him. Still haven't gotten a bill for the water either. 

@Michael Mackney

Could of things - how did you budget for maintenence/Repairs and Capex?

Personally I feel it's a really bad idea to run your numbers at "increased market rent" rate. You should run them at whatever the current rents are, because that's what's realistic. Need to make sure it cashflows currently.

You see it with gurus all the time..."ah well I just bought the property and increased rent to market rate". Yea give me a break. Don't count on this method, the least reliable one of them all.

Did you spend anything to rehab the property tk make sure it was in good condition after you bought it? I typically budget at minimum 5k on top of everything else, because stuff will invariably come up that you don't know about.

To answer your question: Some of them I would live in, others I would not (due to varying factors, location, neighbors, condition, my stage in life)

It also sounds like you are wrestling with a morality thing - no problem with that, but this is a business to me personally. I keep my buildings in good shape and the units in good shape - my job is to provide a decent place for someone to live - not to "help" them. 

My tenants have different wants/needs from me - some want an affordable place, some want to live near the college, some downtown - I on the other hand want a yard for my family/pets, want a bigger area for my shop & home office.

Additionally it doesn't make business sense for me to strive for perfection in my rentals because tenants will invariably mess something up - they don't care about your house like you do, so they won't treat it as you would (this is a case by case, but generally speaking this is what I have found, I do have some that do awesome - fix small things, mulch the flowerbeds etc). I like my house nearly perfect (this is just personal preference). I think you underestimate some tenants living/life choices in lower income areas as well. 

The question: Why is it okay for others to live there but not for you and your family? - This is a borderline entitled socialist question - I'm not even going to start going down that rabbit hole this morning. I don't like "slum" houses anymore than the next guy - but if you are following the law/codes then that is fine and that is what you're required to do. 

I'm interested in the outcome of this thread - planning to start a direct mail campaign once I move and get my new office set up here in a couple months

My theory is this: It works because people do it - although you WILL need a marketing budget. 

And I can't tell you how aggravating/amusing it is to get mail from other investors trying to buy my properties. It'd be even funnier when they see how much rent I'm getting and how much I bought them for (not true for all properties, but I got a couple amazing ones for an absolute steal)

@Michael Mastantuono

Depends on the property. Ask your realtor to ask the listing agent first. Then budget and come up with an offer accordingly

Go look at the property also. Should see separate electric, gas, water meters

 What zip report site did you use?

I just invest locally so I know the area - but that is some badass data that census provides. Another good tool to screen properties more thoroughly