All Forum Posts by: John McDonald

This is tough. My suggestions are just that- Food for thought.

Explain the situation to your insurance provider. They might have protocols for such scenarios or could offer a temporary solution until you gain access to the property. 

Your attorney might be able to help you obtain a court order. This order could potentially grant you access to the property for inspection, considering the insurance requirement.

If the current insurance policy is unfeasible due to access issues, explore other insurance options that can provide coverage under these circumstances.

Keep a detailed record of all your attempts to conduct the inspection and any communication with the tenant, the insurance company, and legal entities. This documentation can be valuable in legal proceedings and dealing with the insurance company.

If you haven't already, a professional eviction service might offer additional strategies for dealing with difficult tenants and can coordinate with law enforcement to ensure safe access for inspection.

Hiring private security for a short period post-eviction can help ensure safety. They can monitor the property, especially during and immediately after the eviction process. Cameras are a must.

Consult with your attorney about obtaining a restraining order against the individual.

Without divulging too much information, let the neighbors know about the situation. They can be extra eyes on the property and report any suspicious activity. 

There are usually specific laws about how to deal with tenants' belongings post-eviction.

Quote from @Danny Bennett:

In the year 2024, I have within my strategy to flip 2 properties. During this time, I will be in an area not suited to investing. However, I will be looking to invest in my hometoen where i have been able to build up a foundational network to facilitate a flip. What systems would you create to make it go smoothly? Who would you recommend on your team to make it run well? What barriers can arise when investing remotely?

The best advice i can give you for flipping remotely is to focus on your local team, first. Id have at least two solid contractors with verified referrals before your start any project as they'll be the first to make it burn to the ground. They should be willing to work with you through your startup phase and help you avoid costly mistakes. A good GC can manage the project for you remotely. A bad GC will ruin you. 

Good luck. 

You do have the legal right to take pictures. Just make sure the pics are only of anything that breaks the lease or has significant damage. Do not include pictures of an entire room that shows their belongings. Each pic should be zoomed in on the damage. Make sure to notify the tenants that you may be taking pics so they can prepare and you can address their concerns ahead of time. 

You need to look at this from their perspective. You will want to avoid negative reviews at all costs once they move out. Personally, I would take pics before they move in. There is no need to do this during inspections unless you plan to show the pics to a contractor to get a bid.

I'm coming to a bit of a crossroads here - I'm considering self-managing my rental properties (or my wife rather). She's been pushing to work from home lately and the properties are generating enough in management fees (between placement and the 10% a month) to make it a possible option. It would be nice to have that money stay within the company.

You already answered your question. This is a personal decision, not a business decision. Happy wife, happy life. If it becomes too much for her, then you can always hire a company to take over. Do you have kids? Then it's a win-win. How much time it will take can be answered by your current management company. Most likely, the set up is the only full-time part.

Quote from @Mark Koontz:

Good evening, 

I am currently flipping a ~550 square foot house in a low income area. Population is ~50,000. Median household income ~$41,000. The house is a total gut with an entire new floorplan. I decided to go with a 2 bedroom layout which greatly reduced the living space. My thoughts behind this is with the location and buying power of buyers in the area, the bedroom count is more important than the extra living space. Also, 2 bed comps are a bit higher than the 1 bed comps. 

Does anyone have any insight on bedroom count vs living space in low income areas? 

Thanks in advance. 

2 bedrooms is a solid choice in this demographic.

For a cool $2.9m, this bad boy can be yours. The comps in the area are selling for between $1.1M and $1.5M but are all on less than 5 acres.

https://www.realtor.com/realestateandhomes-detail/249-Croton...

https://nypost.com/2024/01/10/real-estate/overgrown-westches...

Here's a link with more photos

https://www.secrethike.com/post/the-eerie-remains-of-david-a...

Quote from @Abdel Bah:

I know this might be a reach, but does anyone know of someone (private/hard money lender) that can fund my fix & flips? I am considering both fix and flip, and BRRR. I am mainly interested in Raleigh, NC and one hour radius of Raleigh; but I am also interested in the CT market

I have recently (4 months ago) closed on my first investment, a triplex. Now, I am looking to start doing fix and flips but I don't have the funds for it. I am a fulltime mechanical engineer and I have a consistent W2, I also have a great credit score. I just don't have enough funding to start since I've only been in the workforce for 1.5 years (straight out of college in 2022). Thank you all in advance!

100% is a tough ask. I'd suggest that you JV your first deal or, as @Jay Hinrichs mentioned, try to pull a little equity from your tri plex. Or, if you have a great property, but can't pull off the financing, wholesale it to another investor. 

Good luck. 

As mentioned already, the DSCR won't allow you to live in the unit. I would first find out what loans you qualify for and how much you can borrow and then go from there. If the amount of $ you qualify for doesn't allow you to buy a multi-family then start with a smaller home and flip it, working your way to the larger unit with you living in one of the units. If you do qualify, for enough then def. go for it!

A possible option is buying something near a major hospital. You take the master bedroom and then rent out the other rooms and bathrooms to traveling nurses, or you convert the garage. You get the point. Be creative and figure out a way to make it work based on the feedback you get from the VA loan specialist.

Hi @Dayna K hicks. Good lessons to be learned here about keeping your eye on tenant needs and keeping the units current, which both keeps tenants happy and paying on time. 

Great work. 

Cheers,

Hi @Dee Sivad maybe check out RentRedi. Might be a good fit. 

https://rentredi.com/

Cheers,