All Forum Posts by: Joe Funari

If tenant is month-to-month you should be able to give notice to vacate in 30 days. Search the internet for notice to vacate letters. Submit it certified mail and via email. Then go from there. Of course, this applies to Texas where I own rentals. So if your not in Texas better check the laws in your state regarding notice to vacate for month-to-month tenants. In the future when positing be sure to include the city and state your question is about. That way you get specific advise from experts in the area in question. Landlord and real estate laws vary from state to state. So don't let the rest of us assume where you are. The more specific you can get the better.

@Courtney Adams Find out what the "market will bear" in the location of your rental. In other words, what landlords are generally doing in that area with regards to appliances. Here in the Dallas/Ft. Worth area most landlords of SFR's don't provide a refrigerator, washer, or dryers. But landlords do provide dishwasher, range/oven, microwave, and garbage disposal. Furthermore, landlords typically provide maintenance of the provided appliances too. In short, don't provide additional appliances if other landlords in your area aren't. No need for the additional liability and expense if it won't increase your rents. Moving forward when you post on BP be sure to include the location in question so you get specific suggestions from other REI in that area. Don't make us assume your in our area that want to give advise. Words are free......

@Brian Bisdorf After 10 years in the US Army then 23+ years in "Corporate America" and 4 degrees later I was tired of the rat race. I was at a corporate function on a Saturday night (when I wanted to be home with my family) watching other colleagues get drunk and kiss the CEO's backside. So I stepped out to take a break from the shenanigans. Another colleague was outside avoiding the same circus. So I took the time to vent about how I was emotionally exhausted with the whole game. He asked "You ever heard of real estate investing?" This question changed my life. Of course, I answered no. He said "Read Rich Dad, Poor Dad." He further added that he use to buy it and give it to people to read. But they wouldn't take the time to read it. He said he doesn't do that anymore. Because you need to invest in your own financial freedom. I didn't understand his comment at the time. I immediately replied I can afford to purchase a book. But one more great advice he gave me was he told me to read it with my wife. I agreed we do it. So I went and bought one book. Asked my wife to read it with me. So we had two book marks because she is a much quicker reader than me. But what was great about this is she would get excited reading the book. Even take the time to highlight key points in the book. She said lets talk about the points I've highlighted when you get to it. Those discussions were amazing. Looking back that book changed my life and has strengthened our marriage. Within three months we set up our REI company and 2 months later had our first BRRRR under contract. I am by no means a great REI. But what I have learned that regardless of what "gurus" book you read if it strikes a cord with you then you must act on it. There is more than one way to make money in REI. That is why we call it exit strategies for a reason. More than one way to get out of the rat race. It changed my life for the better. Now I have financial freedom, building legacy wealth for future generations of my family, and spend more time with my family too.

@Ivan Cortez I agree with @Nathan Gesner on this one. End the leases for the tenants. Renovating vacant units is much easier. Plus you get new tenants at a higher rate. But I would add that you get one tenant to vacate. Renovate that unit. Get new tenants in at higher rents. Then do it to the other unit. That way you at least cash flowing one unit while the other is being renovated. Also, helps you focus on renovating one unit at a time. You will ensure that you finish the renovation quicker too. Don't get caught up on displacing tenants. They have enjoyed well below market rents for a long time. But at a cost of a poorly maintained property too. So its a push. Treat REI like a business and not a hobby. Like most hobbies (that project car in your garage) they never get done. The tenants have a lease agreement. It expired. So give proper notice to vacate and move on and increase your cash flow. That is more important that displacing tenants. They will find another residence.

@Chad Rappaport @Russell Brazil is absolutely correct. I would add eliminate states that don't have favorable landlord laws since your exit strategy is multi-family or smaller apartment complex. Texas, and more specifically, Dallas/Ft. Worth area have very favorable landlord laws. I would also recommend finding a realtor first. Specifically a fellow investor who specializes in working with other investors buying and selling rentals. I have been doing this for many years. My team that is critical to the success of my REI business becomes my clients team. no sense reinventing the wheel with proven team members that I, and many of my clients, have used for years.

@Mark Kim I would definitely recommend the Dallas/Ft. Worth area. It has been a strong rental market for many years. Its where my rentals are located. I would strongly recommend, regardless of area, you first connect with an investor friendly Realtor. Preferably a Realtor that is a fellow investor, like myself. A good investor friendly Realtor can recommend contractors and PM's too. But first things first is determining is getting your finances lined up. PM's and contractors come later. But first will make sure you know what you qualify for if your financing. Plus, if implementing the BRRR strategy you will need a Hard Money Lender (HML) or cash to fund the transaction. Again, a good Realtor will give recommendations on both. it is important you have "boots on the ground" when investing out of state. A good investor/Realtor will do that for you. No sense reinventing the wheel. FYI, my REI contacts become my clients REI contacts. I have been doing this for years and personally have used and recommended all of those core contacts you need.

@Amran Musaid I would recommend @Kyle Mccaw for property management in the Dallas/Ft. Worth area. Kyle and his team at McCaw Property Management manages all my rentals here for many years now. They are great to work with. Also, their make ready for any property condition is the most competitive I have found here. Hope this helps.

@Christina Venegas I would recommend offering the current tenants a free months rent to vacate the property in 30 days. Then do the make ready and market the property for sale. The reason is why would you only market your property for sale to just other investors. We are notorious for not paying fair market value for investment properties. Also, most investors don't like to purchase tenant occupied properties. Because many investors don't vet tenants properly. In short, don't want to assume another investors baggage. So I recommend you get the tenants out of the property. Then market the vacant property to not only other investors but owner occupants too. This exponentially expands your potential buyer pool. Don't short change yourself. 

@Ade Guobadia I would recommend you find a realtor that is a fellow investor like myself. Any fellow investor realtor will be able to recommend a local PM, lender, landlord insurance carrier, contractors, title company, etc. Plus, an investor/realtor will be able to help you run comps to help you determine cash flow, etc. Hope this helps. 

@Yonit Young The rent comps for that small town will tell you the days on market for a rental. Personally, I love to invest in smaller towns around the Dallas/Ft. Worth area. In the "metroplex" average days on market for a rental is around 17 days. Demand for rentals is very high here in Texas. But in the smaller towns the average days on market may be 20 to 30 days here. Again, not bad. But you expect that demand is a little less in small towns. But the purchase price savings outweigh this in most cases. But if there are active lease listings in the small town in question if they have been on the market less than 30 days I am usually not concerned. Especially if your financing the deal or rehabbing it before marketing for lease. Also, check to make sure those rentals are comprable to the subject property your looking to purchase. In some cases these other active lease listings may not have a 2 car garage. Or only has 1 and a half bath. I always recommend your first rental purchase should be a SFR 3/2/2. Most common build and easiest to rent. Hope this helps.