All Forum Posts by: Account Closed

@Joshua McMillion

2021: Buy 2 more single family homes in Indiana before my first child is born in August. That would make a total of 4. I’m behind the 8 ball though. The deals are getting harder and harder to come by.

@Ian Kisbert Yes it’s normal, that’s what you’re paying them for. Aside from the names on the leases, I don’t even know who my tenants are.

@Daniel Fitzroy Congrats! Being debt free is the best feeling.

@Tony Holloman I’ve heard of investors that buy these on private land, and then put them on a permanent foundation so they qualify for conventional financing. It immediately increases the value because now it can be accessed buy buyers using a 30 year fixed.

@Misael Carlos Vera I lose motivation on a daily basis. But I hold on to my discipline. I think of motivation like an extra boost. If I wake up feeling motivated then I say “today is gonna be easy.” If I’m not motivated then I rely on discipline to get me through. Motivation is an emotion, and emotions are always temporary. You can’t anchor your goals to the ability to stay motivated, because it’s not possible to achieve a permanent emotional state.

When someone says something negative just ask yourself, is this person wealthy? If they’re not, their opinion doesn’t matter. They don’t know what they’re talking about. They are speaking solely from their own state of fear that has prevented them from achieving wealth. 

@Spence Kal

Market yourself as our “boots on the ground.” Know the neighborhoods and rental rates. Build relationships with contractors, PM’s, and wholesalers. Find us off market deals and handle the rehab process on properties that need work. It’s a lot of work but remember we are repeat buyers. I have agents in two different out of state markets. Both of them do this for me. Like @Corby Goade said we’re easy because if the numbers work we buy.

@Jim K.

I round everything up, and then subtract the difference. 50+30-5 = 75

@Jason J. I’m with @Jaron Walling. Buy a classic! Best of both worlds. Cool car without the depreciation, and they’re super easy to work on if your into that kind of thing.

Honestly, I’m probably not the person to ask because I’ve never had experience with a huge PM company. Every PM I’ve worked with (3 so far) has been a smaller outfit with a handful of employees. Other investors have told me they prefer the smaller operators. 

One thing I would ask them is how often they do inspections. If they don’t have a definitive answer to that question, or if they hesitate like the question threw them off guard, that’s a problem. It means all they’re doing for their clients is collecting rent. My PM has it IN WRITING that every 6 months they enter the unit, and inspect the property. A report with pictures is provided to me.

This is a huge deal to me. In lower priced Midwest markets, repairs can destroy cashflow. The profit on a leveraged SFR in a typical Midwest market is $200-$300 a month. One neglected leaking roof or pipe will put a whole year of cashflow down the drain, and on top of that appreciation isn't making up for the loss like it will in higher priced markets. You can tread water for years. It's the little things that when neglected turn into big $$$ a few years down the line.

@Norb Schneider

I own two in Indiana, and I couldn’t fathom doing it myself from 2,000 miles away. I guess if you had a relationship with a handyman that could be available 24/7 at a moment’s notice it could work. But it’s not like that person would work for free, so it’s all the same.

Something I’ve learned the hard way is when looking for a property manager, ask them if they have “in house” maintenance. Property managers are not going to do repairs and maintenance themselves. If there is a minor repair they will pick up the phone and call a plumber, painter, electrician etc. This gets expensive. 

My PM has a handyman that she pays hourly, and she charges me around $20 an hour or the work. Only the big stuff gets out sourced. But you need to watch them and make sure they’re not constantly “finding” things that need fixed, if you know what I mean.