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All Forum Posts by: Jeremy Horton

Jeremy Horton has started 32 posts and replied 923 times.

Post: Losing my sanity , should i sell or hire PM

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

Likely nothing but a bump in the road. 

OR

You made some bad deals. 

I personally would never be a property manager but I love my property manager - if that makes sense. I probably love her because I would hate doing that job and she does an awesome job

That being said - this is a long term game. 10 years is short term. So think long - think loan paydown - think equity - think cashflow. Yes you will have some big expenses from time to time but if you have ran your numbers right and you spend a little up front to get the property right - you will be in good shape. 

Post: Thoughts on the 1% Rule

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

When you are talking about general LTR residential properties say, SFHs or multi family (2-4) I think it's a good general rule to work and screen from. 

My first few deals I screened using the 1% rule and they are working out good - some initial deferred maintenance/Cap Ex to get the properties right. They are properties in affordable areas that cashflow well. 

Then you have some unique properties - maybe they come with an extra lot, ADU, unfinished room etc - there is something unique about the property that makes it more valuable. So initially it may not cashflow well - but if you change a 2/2 into a 3/2 or finish that basement/attic you'll find that the unit cashflows well. So it may not initially fit the 1% rule but with some well thought out changes it can still cashflow well.

Then you have markets that may be growing but the properties are just expensive relatively - they don't fit the 1% rule but you can anticipate appreciation based on population growth, job growth - something driving people to move there. So maybe you don't get the cash flow but you get appreciation. This can be borderline speculation - works ok for big companies that can take the risk and the loss (worst case scenario). It seems like most mom and pop landlords invest locally and end up getting appreciation based on luck and location. They're simply investing close to home and the place ends up appreciating down the road. 

It comes down to your strategy - personally I need the cashflow as a security net. Does this mean I'm buying every 50k house that I can rent for $650/mo - no because it's junk. I'm buying good properties in neighborhoods (even if they cashflow a little less) because these will be desirable easy to sell properties in the future. Say a 130k place that rents for 1100/1200/mo

So you don't "need" to follow the 1% rule - but I find it works pretty well as a general metric for screening  cash flowing properties. 

Post: Self managing multifamily from a distance.

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

I would develop a plan first 

What kinds of problems have you ran into in the past and what kinds of problems do you expect to run into?

Who will solve each of these problems?

You need a PM or leasing agent or someone very close on site that can be your eyes/ears/problem solver. I think with 20+ units this would just about be like taking on another job

Post: Will you rent to this tenant?

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

Is there anyone else available?

If her history is any indication of future performance (it usually is) you are just finding out the problems you will be having to deal with ahead of time. 

I would pass. She has been staying with family members since her eviction...that tells you all you need to know right there. 

Post: Before I start, does anyone have any turnkey companies that they

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

Why turnkey?

Not saying there's anything wrong with it, just wondering how you came to that conclusion?

Also not trying to be rude but you have 1 post, likely not much RE education other than the 1 seminar you attended and you and focused on the first shiny thing you see. Look around a little bit, learn about more and get exposed to more before you make up your mind - that's all I'm saying. 

Post: Getting Started & Optimizing for Cash Flow

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

Gonna be honest here - I think you need more realistic goals 

15% CoC return on a fourplex near Austin under 500k - not really going to exist

Post: How do you handle late check out requests? Military discounts?

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

Late check-out only if the next day is not booked - I generally would say no. It's just such a slippery slope...but conditionally I could say ok

Military discount is up to you. I personally don't offer discounts for anything other than immediate family. It's just easier if I am black or white about something than make exceptions. 

Post: Tenant wants a dog because he says it is a service animal

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

Treat him exactly like you would every other applicant - then just go with another applicant. 

Do not give him a reason for not getting accepted. "We went with a better suited applicant" and then cut off all communication

Post: First Smoky Mountains STR - Advice

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184
Quote from @Luke Carl:
Read a book called Short Term Rental Long Term Wealth. Everything you need to know! 

 Gonna have to second this - very well put together and tons of good info. Just about every one of your questions will be answered - then it's through experience that you will run into "issues" you will need to solve 

Post: Wholesale or Flip? New to Real Estate Investing

Jeremy HortonPosted
  • Rental Property Investor
  • Somewhere over the Rainbow
  • Posts 949
  • Votes 1,184

If you need the cash then flip it...don't need the cash then renovate and hold it as a LTR...

I usually only wholesale if (1) it's something I don't really want - this could be for any reason - location, size, cost etc (2) too much of my time being taken elsewhere