All Forum Posts by: Ken Musial

I second the use of the Schlage Encode.  It's a good lock that doesn't require a hub (direct wifi access through an app).  Replace bottom lock with a closet door knob.  

I had a local bank provide a 1031 without fees.  Could be an option in your area.  

I self manage 3 STRs in the Outer Banks and it's really not very difficult.  The biggest key is to find a good cleaner/pool guy that can handle minor maintenance things, like changing lightbulbs and batteries in the wifi locks.  I recently took advantage of the strong real estate market locally and 1031'd two LTRs into STRs for the reasons stated above.  It works because I'm less than 2 hours away but I would not want to have to travel more than that to help manage.  Property management fees would destroy the returns.  

Don't let the dramatic replies on here from actual property managers scare you.  You guys can do it.  Granted I only self manage 7 doors, but I don't work 50 hours a week (including my full time job).  It's great that your husband is handy, so he can be your general maintenance person.  In addition, and as someone mentioned above, have good plumber and HVAC techs on hand as these are your more specialized and time-sensitive repairs.  

Most importantly, learn to screen.  The first thing to know is how to look up Texas public court records.  If someone wants to apply and you see an eviction, you can simply delete the inquiry.  I've had good luck with only scrutinizing Income to Rent ratios and no prior evictions.  I don't care about credit. My best and most long-term tenants have had luckluster credit, which likely keeps them from buying a house and minimizing your turnover. Also, learn how to navigate public real estate records.  This comes in handy when verifying rental history from an applicant.  A lot of times, an applicant's prior landlord is fake.  I've denied applicants a few times by tracking down the real landlord who just so happens to be in the process of evicting them.  80% of your applicants will be lying somewhere on the application.

Good luck and keep us posted on how you're doing.  

Ken

I also don't charge a fee for the same reasons as Filipe mentioned.  However, I like doing the background checks myself, especially if the applicants are local.  It's easy in Virginia to figure out if someone has been to civil court, which is a deal breaker for me.  I also get a sick sort of fun finding all of the evictions for applicants they claim they never had.

Ken  

If the stair piece you are referring to is to cover the bull nose of the tread, be very careful with doing that.  Most home inspectors will flag it as a hazard if it were to ever give way and cause someone to fall, not to mention the liability risks.  I had this done with laminate once and I got rid of it after the first tenant moved out.  Fortunately, nothing happened, but I wasn't comfortable with it.  

I had the same situation recently here in Virginia and served a 30-day non-renewal letter.  State laws require the tenant to provide proof that A) He lost his job due to Covid, B) is paying the most that he can and C) fill out the necessary forms.  My tenant did none of that and thus I am meeting the sheriff at the property this Thursday.  

I'm going to buck the trend on this thread.  I'll take lackluster credit with income and no evictions over the "perfect" tenant any day.  There is no way this tenant will stay at your place for very long with 21x the rent.  It just doesn't happen.  Your biggest expense is turnover. Thus, you want that good paying tenant who will have a hard time qualifying for a mortgage to stay for multiple years.  Using this strategy, I just had tenants move out after 10 years and have two others on year 5 and 3 respectively.  

Ken

Both debt and cash have their pros and cons.  It really comes down to your strategy.  If you are younger and are trying to build wealth, debt will deliver better IRRs.  If you are older/looking to retire, you want more income, which can be easier obtained via cash. It's the same philosophy when your 401k is originally tied up in small cap stocks and you gradually shift to bonds as you age.  

Hey All.  I'm going through and eviction process and have decided to garnish the tenant's bank account.  Yes, I realize this is a gamble with crappy odds.  However, I felt it was my civic duty to document this scumbag's credit history and, at the very least, protect a future landlord from doing business with this dude.  Does anyone have any good success stories as a result of doing this?

Thanks,

Ken