All Forum Posts by: Drew Sygit

@Damiete Horsfall thanks. Be sure to leave a vm!

@Diane Tycangco despite media stories that rents are still going up, we're part of NARPM, where many members are having to lower rents recently.

Sounds like the property is Class C based on the requirements.

In our experience, a lot of Class C applicants seem to have a hard time paying application fees, submitting accurate applications and all required documents. Often takes 2+ weeks of followups to piece together enough VALID info to make an approval/denial decision. 

Suggest you book 30-60 minutes with your PMC to go over in detail some of the applicants they've denied, so you have a better understanding of their efforts - or lack thereof.

@Henry Peñate you need to be careful as tenants can claim they never gave you back possession and you stole their things they left behind.

Recommend sending an email asking if she's giving up possession of the property and any remanining personal items or paying you August rent.

@Damiete Horsfall been doing this for 25+ years. 

You should look into local RE investment groups: www.REIAofOaKland.com. www.MREIA.com, etc.

@Matt Robinson

1) Documents - you should have required these at the closing. Once closing is done, seller and PMC are not required to provide you with anything. They might still do it out of professionalism, but we would charge a fee for the time and effort.

2) Security Deposit - Why are you asking such a basic question, yet terminating the current PMC? That's like firing the pilt and kicking him out with a parachute, then asking someone how to fly the plane yourself.

3) Lease - Again, a basic question you should already know the answer to.

Highly recommend you buy and read some of the management books here on BiggerPockets. 

Of course, you can also keep doing it your way of learning on the fly and asking strangers for advice, hoping you don't make any critical mistakes.

@Bill Wells why are you trying to avoid getting a license?

@Chris Geer don't panic, they rarely follow through. Just tell him to have his attorney contact you, so you can put them intouch with your attorney.

Also, highly recommend hitting this tenant with every fee in the lease!

Plan on evicting this tenant as they are only going to get worse.

@Tommy Cheng are you living in the property 2 of last 5 years? If so, would definetly sell to take advantage of taxfree sale proceeds.

Otherwise, you shouldn't sell until you are CONFIDENT you can reinvest elsewhere for better return. 

Read advice below:

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.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

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😊

better than the first

keep buying