All Forum Posts by: John Leake

Hello BP members! I am looking to find a good software to start doing rent collection on. I've had a few tenants request a way to pay with a variety of applications or a ACH. I currently have tenants pay at the bank where it is deposited into my account. I took a look on the property management tab: https://www.biggerpockets.com/... I was wondering if anyone is using these and what is working well for you. I currently have 16 units. Ideally the tool would be able to collect rent, send reminders, include late fees, and do accounting reports.  Another consideration I have is that I should be completing a storage unit in 2022 and would be ecstatic if the tool could accommodate the billing for those 40-50+ units as well without breaking the bank.

Thanks in advance

John Leake

I didn't see this in time to make it but may be interested in the future!

If you claim your tips you'll be in a much better position for the purchase since your income will be more accurately reflected on your tax returns. I would strongly recommend the house hack route because you'll be able to get better financing for owner occupied and get some experience having and managing tenants. I also agree with @Suzy Sevier I've had great luck on the few deals I've done, working with my local banks and credit unions.

I've never done a large deal but I'm guessing that's going to be very dependent on the bank itself and the deal. If the deal makes sense the deal makes sense. When I spoke with my lender I asked a similar question and his response was we wont finance a deal that puts all your eggs in one basket he said ethically to loan someone money on a deal that has strong potential to hurt both partners doesn't make sense.

@Michal Kolenda That is the plan yes I currently do not have any renters my property needed a bunch of work and i'm planning to list it as available this weekend since two of the units will be ready this next week sometime. I plan to put all reserves into the savings account and keep minimal money in the checking. I also worked with my bank and tenants can pay at the bank and directly deposit the money into the checking account since its only a few blocks from the building I bought. My plan is to build a welcome packet with enough envelopes for each month of the lease term prefilled out so all they will have to do is write their check and drop it off at the bank or put a stamp on it and mail it in. I want it to be as easy as possible for them to be able to take care of it!

I believe I heard about the wecome packet and envelope on one of the podcasts if you don't listen you should start!

When I was looking into this I met with my local bank that I got the loan for my property through. I set up a business account with that same bank so that I can begin building that relationship for future deals. The transparency that comes with serving you loan and business all in the same place cant possibly hurt when it comes to the next deal! I set up a business checking and savings. I also read that deposits do not have to be in an interest bearing account if your property is under a certain number of units. I purchased a 4-plex so very similar to yours. Will definitely try to follow this post and chime in if I can help!

@Lauren Apicella I currently live in normal and have seen several houses be bought and sold we have lost a bunch of jobs in recent time. Illinois is also having people move out of state for whatever reason but I feel like there is real potential in the town for student rentals. I see new apt buildings going up all the time. I'm still working on building my business for managing tenants. I finished Brandon Turner's book "The book on managing rental properties" and I have a lot of small things that I need to have set up but it should make it so much easier to scale over time and my next purchase will be in town if at all possible.

@Lauren Apicella I bought I fourplex in a small town near Bloomington Normal and while it is still undergoing renovations the market is fairly strong for rentals in my area there are several colleges in the area if you want to cater to that market I'm going to wrap this one up and look for a 5+ unit closer to town to see if I can capitalize on the student market.

Welcome to Bigger Pockets! I've gotten a lots of good advice and information from the folks on here I'm in the Central Illinois area and have visited Chatham several times its a nice area! 

You might see if you could get two at a time and work that angle still going to need your percentage down and a lender willing to work with you but it might be an option.

Good Luck,