All Forum Posts by: Jeremy M.

LOL, glad I could make you feel better!

@Filipe Pereira  @Laticia Braxton  thanks for the feedback! You both make some great points! And so much is just simply exercising some good ole fashioned common sense.  :)   I especially like the comments about (1) not incentivizing a landlord to keep a tenant - didn't think of it from that angle. (2) setting realistic and proper expectations (and being adults) 

Follow up question - would you like/dislike having the owner involved in property maintenance for things that do not require licensing?  It something I still enjoy and I have about 20 yrs experience in about all elements of the residential construction scene, new construction, rehab, have worked on houses of about any imaginable sort and size. I'm thinking of working out a deal with a PM where I do anything that falls into any predetermined categories of maintenance and they handle "tenant stuff"  and major issues. 

@Ami Sapir inspiring to hear your story. Congrats on being honest enough with yourself to start digging your way out. It takes a shift in mentality and enough maturity to be willing to defer luxury. I've been there and am still working on it. (that's why I still drive a '98 truck)  :P  

@Ron Flatt has some good advice on the credit card thing IMO. Credit cards aren't inherently bad, they're just mostly used wrong, enabling the financially immature and/or uneducated. Keeping a card or two open and using it properly will maintain that good credit score that you want as as investor. I just view them as another tool in my box. You mentioned that one of your life currencies is travel. So is mine. I personally manage and use 12+ (I won't tell you how many) cards for the cb/rewards. This started some years ago when I had more time to maximize it than money. Cash is still king when it comes to discounts and such but any other expenses are paid with cards. This little side hobby has allowed me and my wife to enjoy many almost free trips internationally over the years.  Cheers and the best of luck!

Does anyone care to share some ideas on incentivizing my contract with a property manager. I am admittedly fairly uneducated in dealing with PM's but from what I've picked up, it almost seems like they get paid more/better on tenant turnover than not. Seems like a definite conflict of interest from where I stand. I am still in the brainstorming process personally. I'm thinking along the lines of a trial period where after a certain period of time I'd offer some kind of quarterly bonuses based on lack of turnover/rents paid on time ect ect. Something to create "buy in". Would love to hear what's working for you.  

I would especially like to hear from PM's themselves...

(1) Who are the types of owners you love to work for?

(2) Who are the ones you dread picking up the phone for?

(3) What are the obvious things that owners miss that you wish they could understand? 

(4) Anything else....

thanks!

Does anyone have any recommendations for a PM for an 8 unit in Thomasville NC?  Good communication and a good attitude are important to me. When those are present, we can figure out the rest.  

Thanks!

@Michelle Romano  I compared HD with RTA for lower end flip.... I ended going with these guys  

https://www.rtacabinetstore.com/

Was very happy with the product and the service. IMHO cabinets are lightyears ahead of the HD product and it really sets you apart from all the readily recognizable generic HD and Lowe's stuff. Opened a PRO account and it turned out to be cheaper too.

@Andrew Johnson  @Wayne Brooks

Thanks for the insights and the questions. Helped me think through the process a bit better. 

It's a buy I wanted to make work and I should probably just walk away.

According to my "definitions" ARV=actual assessed value after my rehab versus the currently inflated market value.

And it's quite possible that my logic is all wrong. This is just the differences that I had made.

@Andrew Johnson Ok, I see what you mean. I'll try to clarify. By "market value" I'm referring to what the comps are selling for currently. My line of thought is that currently comps are selling for $120-130K. This one is listed for a little over $100K and I think I could buy it for around $100k mark. The primary reason for this selling less than the comps, is the existing lease and rents that are below market. According to my agent and to the best of my knowledge.

The only justification to me is the potential that would lie in - Upping the ARV and the rents Gaining on cash flow and depreciation in a really good market Buying and having a tenant pay down a mortgage vs sitting on my cash. In this particular market the comps are selling at 60-100% above assessed values. How is this sustainable?