All Forum Posts by: Jesse Danzig

stitcher doesn't have all the episodes which is kind of a bummer. it goes from episode 96 to 55, then stops at 49. 

i live in LA and during the recession just about everyone i know negotiated their rents down. it happens. 

just make sure your numbers work and that you have some downside protection, especially if you think we are at or nearing the top. a lot of people who bought between 2010 and now have no complaints about riding the market up and are happy to share their success stories, but a lot of people who were destroyed by the crash may not even be on bp. if you are buying on thinner margins, make sure your numbers are sound, you have some protection and enough reserves to weather a storm. 

@Shea McCavit even if you only make $5k-$10k on it, sounds like a great learning experience. and at $10k you still made 10% on your money which isn't anything to be upset about. congrats on going for it and making it happen. 

thanks for the feedback everyone. 

my general concern is that as with a condo hoa per say, the strength of the hoa is paramount, there is a board that needs to be managed, there could be special assessments which could end up costing you money, and there could be rules regarding rentals, etc. 

@Daniel Dow - without the HOA fee, wouldn't the tenant be responsible for trash and snow removal, along with the other costs of maintaining the house?

we are looking at $75k-$100K+ sfr's in indianapolis, and many of them come with hoa dues for snow removal or if they are in communities that have a pool, club house, etc. we are generally pretty skeptical of hoa's, but would love to hear your thoughts on them: not a big concern (other than increasing expenses), or something to be avoided, etc.

thanks in advance for any feedback. 

a few comments:

-i think property management in indy is typically 10%, but if you already have it lined up at 8%, then great

-most people i talk to put vacancy at 10% as well

-are you putting any additional money intoimprovements? if yes, it would affect your CoC, if not you're good

-are you taking any money off the top for future capex? if so (and you probably should), it should be factored into your numbers

i can't estimate the rent without knowing the address or cross streets, but i'm sure the combination of your property mgr/agent/internet can help confirm. 

hope this helps, and good job!

@Scott Trench seems to me like you're already pretty well diversified. as mentioned above, if you have extra money to save/invest, consider continuing to build your cash reserves or pay down existing mortgages. you can also always find a tech company or startup to invest in too. 

thanks @Kayla Lyon!

what property management company does morris invest use? their own in-house shop or do they outsource it?

thanks for sharing @Matthew Schroeder! important news to be aware of.