All Forum Posts by: Kameron Ballentine

Thanks for the feedback @Ericka B.  I was going to avoid the absentee mailer lists because I feel like everyone uses those lists.  However, this thread is making me rethink it.  I'll have to figure out how I can make sure I am available to answer the phone (My day job doesn't always allow for me to answer my phone).  

I have looked into eviction lists and tax delinquency lists, both of which are hard to generate.  I may start with the absentee list and see what happens. 

@Ericka B. and @James Ritter What list did each of you mail out to?  I am about to start a direct mailer campaign, and I am curious to know what lists people use, and what the response rate is?

BTW, I loved this thread.  Answer your phones, and keep your appointments.... It seems so simple and yet it's just crazy enough to work!

Welcome to the community. I would recommend you start attending the local REIA meetings. There is a monthly BP meet up as well. The monthly BP meet up is the first Thursday of the month at 6:30PM. It's a networking activity only. The meetup is held at the Huddle (Fort Union Blvd and 2400 E.) and it's free to attend.

Another thought, you may want to get additional references from previous landlords.  My personal opinion is that the previous rental history is the most important source of information for potential tenants.  I'm not talking about their current landlord (the current landlord may feed you a line to get rid of the bad tenants), but the previous landlords will tell you the real story.  I had an applicant with bad credit (not horrible credit, just bad credit) apply for tenancy.  I made him provide me with additional references from previous landlords, and he did.  I got 3 more references, and all of them were great.  I stilled verified everything else (no evictions, income verification, etc.) but that particular applicant was able to prove to me that he would be a good tenant.  

I bought a duplex in the Salt Lake City last year. It wasn't a "deal", but it provided the best rate of return for anything I could find. I spent 3 months looking and analyzed 50 or 60 properties on the MLS and did extensive research on rent prices in the Salt Lake Valley. This property provided the best Rate of Return of anything I could find. The only way I could have found a better deal was to find something that needed extensive renovation, and picked it up cheap. Or if i had cash I could have found a better deal.

It cost $200,000, and already had 2 tenants in it.  It rents for $1,530 per month.  It needs a new roof, but I can replace that myself this summer.  Other than that, it's in reasonable condition.

I don't know if the market in Ogden is similar to Salt Lake County, but if it is, you'll have a hard time finding a "turnkey" property that meets your 1% rule.  Your best bet is to work with a wholesaler, or find a deal yourself that needs some work, fix it up, then rent it out.  If you can get the property at the right price, and your willing to put some work into it, then you should be able to find something that meets your 1% rule.

Hope this helps.

Great thought. I am new to the real estate investing market, and I'll be attending the various REIA meetings to network.

I would love to know the time as well.  It would be great to come.

I agree with Douglas.  Utah is suppose to grow significantly over the next 40 years.  It's not just short term growth, but sustained growth over a long period.  People are having lots of babies, and there are plenty of people moving here.  

Utah is also becoming more diverse in its economy.  High Tech has been growing (Abode and others) and manufacturing (Dannon yogurt and Boeing).   This is a business friendly state with lots of potential for growth.  

I have worked on floodplain maps in the past, and can tell you that flood insurance is not a typical business because it's administered by the federal government.  If flood insurance is required, it is pretty expensive.  Typically flood insurance costs range from several hundred dollars per month to a few thousand dollars per month depending on what type of floodplain the house is in.  If you going to buy the property, make sure that you know how much the insurance is going to cost, and that you've factored it into your analysis.  The fact that the property is in the floodplain decreases it's value significantly. 

Flood insurance is required if your going to get a federally back loan (basically, all mortgages are federally backed).  If you decided to stop paying flood insurance at some point along the way, then the mortgage company can foreclose on the property.  Furthermore, if you get the required flood insurance it will only cover structural damage, but will not cover incidentals (T.V.s, personal items, etc.) To cover the personal items requires a separate policy that can be very expensive.

In answer to your question, I would look where the house is in the floodplain (i.e. is the house on the edge of the floodplain or does it extend well beyond the property).  If its on the edge of the floodplain then the risk may not be as great, and you probably wouldn't need to require the tenant to get a separate policy.  I would get them to sign a document that states that you have notified them of the fact that they live in a floodplain and they are aware of the risk.  They can then make the choice in regards to insuring their personal stuff.

I love the suggestions.  I currently go to home-depot and pay about $10 every time I want to re-key a door, when a tenant turns-over.  But it seems like there are better ways (and cheaper ways) of re-keying doors.