All Forum Posts by: Karl B.

And this is why I don't invest in areas where I don't have boots on the ground. I learned early on that the PMs in my main market are inept. 

There are good PMs out there I'm sure... but I would rather self-manage with boots on the ground as every multi-family I've ever purchased was done so at a discount due in part to the seller being fed up with bad PM. 

Hello. My first multi-family property was a 4-unit, which turned out great. Aside from learning everything you can about real estate, make certain you know all of the numbers on any potential deal. 

You're going to want to cash flow $100-$200 per door (or more) each month.  And you'll want some cash reserves (especially when you get a new property) for improvements and repairs that will undoubtedly appear. 

If you can buy a property that's not run well and is partially vacant you can experience a good deal. Don't be afraid to lowball - especially if the property needs work. 

And finally, make certain you hire a good inspector - you can try to get credits from the seller (based on repairs the inspector finds) plus it's essential to know what you're getting yourself into, property and repair-wise. Hope this helps.  

Hi, definitely have a rental agreement as well as a background/credit check (many apartment associations provide both which is great). You can charge a deposit - it's not as essential as a standard rental where a tenant can trash the place without your knowledge - but a smaller deposit to cover damage won't scare a room-renter off. 

And based on experience, make certain the potential tenant has the same hours as you. I had some guy rent a room in my house and he failed to mention he worked nights - I quickly realized this when he'd arrived home at 5 AM making too much noise. 

Awesome. I'd network like crazy at local RE events, post an ad in the local apartment association newsletter (if applicable), get a website, optimize it for SEO, get some testimonials and online reviews once you've had some happy clients, and make certain the tradesmen you use are reliable and fair. And get systems in place for organization, speed and to make certain things don't fall through the cracks (staying ahead is vital). 

Related, don't nickle-and-dime your customers, respond to them in a timely fashion, and do the right thing and you'll quickly rise to the top.   

I don't... but I'm not investing in a hot market. I can completely understand if someone was investing in a hot market and using it as a tactic to lock the property up quickly. 

Though  if someone comes back to me weeks/months later wanting to sell I have lowered my offer. 

All off-market deals I've done were sellers with inept property management who wanted out. I've had the best results talking sell price over the phone. That's the time to remind them of their pain points and tell them why you're offering what you are. 

Your local housing authority likely has a list (whether physical or online) of the available Section 8 apartments and homes and you can be added to that list. If for some reason they don't have this, tell them to do it! 

And of course, you can also post in your online rental ad (Zillow, Trulia, Hot Pads, etc.) "Section 8 accepted". 

 Now that's what I like to hear! A penny saved is a penny earned and you just saved between 200,000 and 675,000 pennies! And definitely seal the exterior ground/wall as well. Trapped water (whether in walls or between the foundation and interior wall) can cause mold issues. 

Hi. This is a great idea (as long as the numbers work). In the past I've told my siblings they should use this same strategy (for their college-attending kids) but it hasn't yet been done. 

In the event you're having trouble securing a loan you could have a parent or family member co-sign the loan for you (if they have both good income and credit). If this is an option the loan can be secured on your behalf whether it's a FHA or traditional loan.

Hello. Welcome to BP. Aside from online reviews, I would attend a local real estate meet-up and ask RE investors who they use as their CPA. Likely, there will be some recommendations, and as mentioned, you can vet those names online using review websites. 

I believe it's much easier (enjoyable and fruitful also) to talk about real estate/success/etc. with successful people, whether it's family, friends, etc. I'm more likely to offer financial numbers when I'm talking with someone who is in business or real estate and the energy from the other person is good. 

For example, I remember seeing a friend of a friend  (when we all met up in a group) and he owns some real estate - he and I caught up and talked about how the other was doing with our properties and when he asked numbers I told him the numbers on a new accusation. And he grinned and said, "I like that deal...."

With unsuccessful people, ever notice that some tend to LOVE to hear about the struggles (this is where they ask questions, ask what I'm going to do, give their .02, tell me how being a landlord must be awful, etc.) but get annoyed when they hear about the positives?

Some people literally change the subject to something else (and as the OP mentioned, it's not bragging - I'm not telling them about money coming in or anything of that nature - it's often something as simple as saying I filled a vacancy or made an improvement to a property). Can anyone relate to this? :-)

When I meet people I really don't go into specifics unless folks ask (I've had people who want to get into real estate, ask lots of questions, light up and get excited - I LOVE talking to these people and offering them books and sources (like BP)).