All Forum Posts by: Jim Goebel

We just got back from a vacation.

It was really stressful before we left and we had some conflict over the vacation, too - 

However, things seem to be more under control and I feel more relaxed- however, we have wondered if it feels easier to manage our time, as we scale and grow our portfolio.

I can see the financial results but it still feels at times like a constant struggle to get reliable help.  This puts major time pressure on us.  What to do?

A few questions on this subject.

I already have a fledgling engineering practice with 1 good intermittent paying repeat customer.  It's nice and I really enjoy working with them.

What has worked for you?

Has anyone vertically integrated?

If so, what are your side businesses?

How does one go about prioritizing time when there are a bunch of things that hit at the same time?

We aren't in this situation right at this instant, but foresee this coming up.

Just wondering if you all have a good framework for prioritizing this stuff and / or do you have intermittent resources that can help?

Just looking for some general thoughts on how you incent a good GC for an aggressive remodel process.

If I could figure out a way to separate myself a little bit from the active management of these projects, that would be great.  We haven't been successful in doing that, though - and keeping the resources engaged throughout the duration of the project.  Just wondering if anyone has any good incentive scheme or rules of thumb here!

Thanks!

So the post title says it all.

Recent rental inspector said he would require to get a 3rd party licensed HVAC diagnosis out to check out the system.

There are other numerous issues at this property as well, but it all boils down to a real lack of consistency in what we are told to do to navigate the rental inspection process. 

I've considered writing letters to the mayor or other channels, but am scratching my head on this one.

How do you stay sane and navigate this stuff for others that have been through it?

So we have one property that's in a 'less' desirable area of town.  It's a decent property and currently produces about $300-500/mo in cash flows, not including deferred maintenance allowance.  The property is rented out with 5 separate living spaces currently, more as an apartment than a house.  The house has the size and layout to support this.  However, all of our other rentals are single family homes or a duplex that we have rented outright to one tenant effectively.  I can tell that the house in question is taking more wear and tear, and although we have an on site property manager, I can also tell that it's taking more of my time on average than the others.  We estimate that the free cash flow if we converted it to a single family home rental, would reduce possibly by $50-150/mo, and we may have costs of about $500-1500 for the turn (vacancy and other deferred maintenance items that could wait but we would fix if we had the turn).

Further, this property is different than the rest.  Most of the rest are either newer, only 3 bedrooms, or have some type of specific architectural appeal that separates them from most and helps command higher rent.  This one is just a very large house, basically - in a so-so neighborhood.  So it doesn't fit just right, and requires some special attention.  However, we're building equity, and it cash flows decently.. What would you do?

We sketched a graph that was kind of the groundwork for us evaluating trade-offs for selling vs renting.  We understand that there are numerous qualitative considerations, but I'd be interested in what people have to share on how you decide - whether to flip , and sell - or whether to rent.  I know most people have a strong bias in one direction or another - for us so far it's been renting - however especially for those that can operate either way and have a good model/approach for making these decisions... How do you do it?

We are taking on the most aggressive rehab project to date.

I'm an engineer, licensed, and have practiced electrical engineering and some limited structural engineering.  The upcoming project, I'm told - all permits and plan reviews go through a 3rd party engineering company.  Hopefully, I will speak their language and we can navigate this without adding any un-needed costs.  My wife told me to be diplomatic, but other regulatory items have come up and I would not share that same opinion on our ability to keep un-needed costs as low as possible, especially when managing rehabs that are very aggressive and involve some systems type of work.

So far, our experience with cities and places that have 3rd parties (Ankeny) have been very good.  There has been good rapport and a focus on efficiency, is my candid feedback on that, as compared to in house regulators.  I wanted to get any and all feedback on people working through 3rd party reviewers, either for a rental certificate, or if any plans need to be reviewed.  I can share more info but I think anything beyond this would be best tailored to a 1 on 1 type of conversation.

We are based in central Iowa and are considering a move out of area, at some point in time.  At this point it is more of just an outside thought/longer term option, under consideration.  However, we are active in rehabbing homes and have a small rental portfolio.  I want to hear the good, bad, and ugly, and any tidbits of advice to most effectively manage and keep up these investments over time.  We currently actively manage our own portfolio but would consider bringing in a PM with the right fit.  

We are new to owner financing but own a property under a self directed IRA and are considering all options. One that we have been discussing is owner financing. Who here has some experience with offering owner financing. We are looking at a sale price likely in the 180-215k range depending on how the market holds up. We are unsure what the place might rent for but that is also an option - our range estimate is currently at $1350 to $1800/mo. If we do offer owner financing, the justification would be that as we understand it, it may make an easier closing process. There are a couple items that although wouldn't likely completely gum up the financing process, might give a buyer with a bank/appraisal/etc some leverage that we wouldn't prefer they have! So, anything and everything relevant would help, including where we should start going to gather information and make an informed decision on this!

Thanks in advance.