All Forum Posts by: Jesse Kindra

Hello Fellow BPers,

I am based in the Seattle area but many, many years ago went to school and worked in the Chicago metro area. With that said, I'm looking to invest in the Chicago market. Have any of you worked with PIP Management as a property manager? They also sell properties to investors. I would appreciate any input on experience or reputation of the organization. 

Thanks!

I tried AHS a few years ago on several properties thinking this might be a clever solution for managing repairs in my units. What I found was this, they tell you that they respond in 24 hours, however, that is the company actually rgetting back to you and then actually getting someone out there can take a much longer time. In my instance, my tenants dishwasher was not completely draining and it took about one week for them to get there. When they did arrive, they had to come back twice and the problem still was not solved. By this time, I was feed up with how long it was taking (and the multiple calls to AHS) and why their vendor couldn't quickly handle a simple item. I called my go to plumbing company and they were there the same day and fixed the problem immediately. Did it cost me more? Yes, but this was a good reminder that you get what you pay for.

@Nahum George - I think everyone has given you great advice on appreciation vs cash flow. I have properties here in Seattle (around Tacoma area) and I am looking at out of state options because it's very difficult to buy at the right price and have cash flow here. What I have learned is that your team (Property Manager, Contractor, Realtor) is the most important factor as I have relied on all of them at various points over the years. Make sure to keep that in mind when making your decision to purchase either Turnkey or BRRRR properties. Happy hunting.

@Joe Fairless - Very inspiring. Thank you for sharing your wisdom. I also enjoy your podcast so that you for that as well!

While the 1% rule is tough to find, it does exist. One way is to create it in this market such as finding a property that is not necessarily financeable and bring cash and then fix it up. Also, there can be opportunities to increase value by creating/adding more rooms or finishing a basement for living space or even utilizing a basement to add storage units, and coin operated laundry. Also, a detached garage or carport can be added and rented out for additional revenue. Others have done this and many more creative things!

Happy hunting.  

Hello @Collin Wisdom - By MFH, I assume that you mean 2-4 units? If so, I can say from recent experience that there are still deals to be found. Even though Tacoma is hot, I just closed on a Triplex today in Tacoma and after some repairs and properly managing the property, we will be well over the 1% rule. I suggest building relationships with realtors and others that have access to off market properties. Best of luck!

To everyone that gave some great suggestions, I thought I would follow up and let you know what happened with working to get insurance in place. I called a few of the companies suggested (and others) and having a fire claim prevented most of the companies from wanting to place insurance on the property. One company stated that I have too many rental properties. I ended up contacting an investor who has an extremely large portfolio in the Seattle area and was able to come up with a company that will cover. So, phew... that is now taken care of!

So, if I can help folks in the future (and hopefully you don't have a fire or other major issue with your rental), I have done the homework.

Thanks again all for the suggestions.

Thanks for the suggestions of Fraley Insurance and Amica - I'll reach out to them as well.

@Account Closed

Good to know, thanks for sharing the info on Safeco.

With the claim I had on the fire, the insurance company was also coming back at 50% of actual loss. After some back and forth, I was able to get them to cover the actual loss. I guess I was lucky!

@Christen G.

Hi Christen - I just sent you a PM. Would appreciate an intro to your peeps at Safeco. Thanks!