All Forum Posts by: Drew Sygit
Drew Sygit has started 42 posts and replied 9782 times.
Post: Property management contract question regarding legal feels
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
@Jayne Florez you will find this clause is pretty standard across the country.
As @Nathan Gesner stated, the PMC is held liable for what they do wrong.
Also, the contract most likely states you will have to add the PMC to your home insurance as "Additionally Insured". This is because it's VERY difficult and expensive for a PMC to get liability (mostly slip & falls) coverage on a property they have no ownership interest in.
Post: Furnished Single Family Rentals?
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
@Charles Clark it depends on your market.
What will attract people looking for an alternative to a hotel?
Post: Out Of State Investing
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
@Semaj Dorsette $80k will get you a decent rental in Detroit or Pontiac.
We think the Midwest is a GREAT place for OOS investors to consider!
YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!
Many OOS investors set themselves up for failure because they don't truly take the time to understand:
1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.
2) The Class of the PROPERTY they are buying - which is relative to the overall area.
3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.
4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.
5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.
6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.
7) That OOS property Class rankings are often different than the Class ranking of the local market they live.
8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.
9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.
10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.
11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.
Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?
Good luck with whatever you decide😊
Post: Turnkey property for first-time international buyer
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
We think the Midwest is a GREAT place for OOS investors to consider!
YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!
Many OOS investors set themselves up for failure because they don't truly take the time to understand:
1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.
2) The Class of the PROPERTY they are buying - which is relative to the overall area.
3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.
4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.
5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.
6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.
7) That OOS property Class rankings are often different than the Class ranking of the local market they live.
8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.
9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.
10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.
11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.
Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?
Good luck with whatever you decide😊
Post: Inherited Tenant - Switching from One Payment Method to Another
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
@Paul Sanchez what does the tenant want to do?
Why are they paying manually?
Worst case, wait until lease renewal and require online payments then.
Post: Survey: Best LTR Property Management Online Portal
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
We use Propertyware, have experience with Buildium and have played with Appfolio and RentManager.
Buildium is for smaller companies.
The other three are tied, the differences being how much automation & customization you want to do.
If you don't see yourself growing beyond 150 units, go with Buildium.
If you're not very techy and plan to grow over 150 units, we'd recommend Appfolio.
If you're techy and plan to grow over 150 units, we'd recommend Propertyware or RentManager.
Of course, schedule some demos, take GREAT notes and them make your decision.
FYI - there are MANY new options on the market, RentRedi, TenantCloud, Apartments.com, Hemlane, Rentec. The unknown is, will they survive?
Post: Limitless Kris Krohn
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
@Bill Zarzecki he's selling TOO MUCH BLING for this to be anything but another Fortune Builders - who is usually more concerned with selling your programs than mentoring you.
Join a local REIA group and learn from actual investors.
www.REIAofOakland.com
Post: Looking for OOS investment opportunities
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
We think the Midwest is a GREAT place for OOS investors to consider!
YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods: https://www.biggerpockets.com/...
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!
Many OOS investors set themselves up for failure because they don't truly take the time to understand:
1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.
2) The Class of the PROPERTY they are buying - which is relative to the overall area.
3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.
4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.
5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.
6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.
7) That OOS property Class rankings are often different than the Class ranking of the local market they live.
8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.
9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.
10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.
11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.
Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?
Good luck with whatever you decide😊
Post: Greetings from the Great Lakes state
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:
Post: New to All of This and Any Tips would be Great
#2 All Forums ContributorPosted - Property Manager
- Royal Oak, MI
- Posts 10,079
- Votes 6,934
If I had to start all over again, I'd look to acquire a 2-4 unit property with an FHA low-down payment mortgage.
Getting it under market value would be a bonus.
So, would using an FHA 203k renovation loan, which would allow me to buy something unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.
Hopefully, I would increase the value of the property in 1-2 years and be able to refi out of the FHA mortgage. I'd also learn a lot about maintenance and managing tenants.
Then, with my hands-on experience, I could decide if I wanted to repeat the process or target 5+ units - which my experience would help with lenders.
Good luck with whatever you decide to do!