All Forum Posts by: Keith Jablonowski

I agree on the taxes. Make sure the tax number you are looking at does not include a senior exemption or homestead exemption. As a rental property you will lose these. $6500 for a $405K home seems a little low for Cook County.

They do have written leases with the tenants.

They never said they wouldn't do a contract between owner and them, they just suggested that they do not do this with virtually any of their current clients.

Yes, would be interested.

All good feedback, thanks for the replies. I definitely didn't think it sounded right. Just wanted to reinforce my gut feeling.

What are your thoughts on a Property Management company that operates without a contract between them and the property owner?

Was inquiring about a property and the current property management company stated that they work on handshake deals for 95% of their clients. They do currently manage 500+ doors.

Their selling point was the a contract would just end up protecting them more and doing nothing to protect the owner.

This gave me a very uncomfortable feeling. I don't understand letting a 3rd party deal with the tenants, maintenance, etc in a building YOU own without a single thing in writing detailing the terms.

As I have never hired or worked with a property manager before I am interested in hearing other peoples thoughts on this.

Brady,

Not sure what your long term goals are.

I agree that your time is worth it's weight in gold. My personal opinion is that you are spending too much of your own time rehabbing your properties yourself. You are really good at what you do.

If you just did this work full time as a contractor on other people's properties I think you could make way more then the $40 profit in 2 years (+ free living while you do it).

Or continue to do flips but oversee the work on yours and several properties at once and leverage that skill into more profit.

Just food for thought as to how you can take that passion and skill that you have and make it work for you even more.

Looks good. I think you need to add in the $10K rehab cost for your cap rate calculation though. Still over 10.5%.

Looks great! I assume the $20K repair number is not factoring in you/wifes time. How many hours total do you estimate you spent on this rehab repair wise?

Thanks Carl, I meant to state I was looking for replies from buy/hold investors mainly. I do know this is all subjective and that's the interesting part of my question. Want to see what it is for each individual that makes a deal one to walk away from or one that is a home run.

I suspect there will be a very large range of numbers even from investors in similar types of properties.

I see a lot of advice about how it's not important to hit a home run with every deal. String after string of single and double deals with score lots of runs and success over time.

In terms of cap rate and COC return on a a particular deal (considering the market you invest in and your goals) what ranges would you classify as an single, double, home fun or strike out (hopefully avoiding these completely).

I know some investors are happy with a 6% cap rate while others won't touch a deal unless they think they can do 10% or higher so if you want to qualify why you set your range how you do that would be great too.