All Forum Posts by: David Hutson

I'm with John, provide addresses, asking price, current rents....  I may interested  also.

@Shonnie Burnell,

Welcome to BP. I'd recommend attending one of the local REIA meetings. There are a few of them and they meet once per month on different days. There is also a meetup locally that Al Williamson puts on. That is usually quarterly.

Those will be the best places to meet people that have the same goals you have. 

Yes, unless you want to deal with a lot of issues stay away from 38127.  There are lots of properties.

@Curt Davis

 I'm about 55%-45% that I have bought myself vs turnkey.  It's been difficult finding good homes that are correctly represented and then getting agents/sellers to follow through and call me back or hold up their end of the agreements. 

I have been buying a house a quarter out there and it's difficult to continue while working and taking care of my properties in CA so turnkey has been more appealing. 

I often pay a little more for the house but if all the work is really done, meaning to me that there is no deferred maintenance and the rehab looks good to a well qualified tenant, and is in a good area it is less work and stress down the road. 

I'm definitely keeping my eyes open for good homes on my own but there is almost always an issue.  I recently bought what I thought was a good deal through an agent in 38128.  The house had a new tenant with a two year lease and a large deposit.  While pricewise I got what I think is a good home in a good area, the tenant moved out a month later with no notice,  Disappeared overnight.  He didn't destroy it but I had to spend about $500 to clean the carpets and the house, cut the grass and misc small stuff.  It was just rented again to a new tenant at a lower rent and a cost to me of a half a months rent up fee.  I'd do it again in a heartbeat if I saw a similar home though.

Some of the turnkey companies out there just make it so easy for me, give a very good return and I don't have to worry about repairs every month or two so I'll continue with those when I can't find other homes.

I agree with Stephen.  Look at the others also don't go with the first one you see.

I have talked to all of them I know of out there and actually drove around town with a few of them. 

Bottom line is you need to complete your due diligence and find the company that meets your requirements.

@Juan Calvo

Afternoon.  I have two houses with them, am in the process of buying one and on their waiting list to buy another.  I really like the quality and standardization of the final product.  They have a team who is experienced and knows what they are doing.  I strongly recommend them for a turnkey home.

Send me a message if you are interested in more info and I can provide you all the details you would like. 

@Johnny Khoury

I have three houses with Crestcore and they do a very good job.  Dan is also who I talk to. 

@Jason Bolton

Congrats on taking steps to move forward with real estate. We have two REIA's in Sacramento which hold their main meetings once per month. Google Sacramento REIA and you will get NorCal REIA and Sac REIA. I have heard of a new group, either REIA or meet up in Roseville. It's fairly new and I don't know anything about it except there is a group.

There is a local meet up of BP people every three months or so.  Watch for that.  It's been held downtown for the past 3 meetings.

Good luck,

David

In Elk Grove it is a two minute request on the phone or in the office and it comes automatically every month when they send the tenant their copy.  Mine is exactly like theirs except it states "COPY" across the front.

Afternoon,

I am in Sacramento and Elk Grove. 

I have all of my SFR units paying their own water. Most of them are metered. For a few tenants where the water bill is part of the overall utility bill I provide them with the water portion so they can see I am not making up charges, if they ask.

In Elk Grove I require all of the tenants to go to the water district office and sign up in their name and have the water district send me a copy of the bill each month.  I am liable for the water bill if the tenant doesn't pay so I do not let them get behind and do not provide them their full deposit upon move out until the water bill is settled.

I find that I can get a higher rent as they usually think about their rent separate so they don't consider the overall cost.  I do tell them what the water bill averages and that it will depend on how much they use.  Overall I think I get $20-30 more a month overall in rent due to this.

@Minka Sha,

As far as the PM forgetting about you and not increasing your rents, that's highly unlikely.  They run reports and can see what everyone is paying in a complex.  Why would they choose someone else and not you to get more money?  You could ask some of your neighbors that your are on good terms with about their rents, if you comfortable with that and can talk to them.  You can also look to see what vacant units are listed for, if there are any.

As for who to talk to at the PM company, I would talk to the most senior person you can get the attention of.  There is no one set person who determines the rent increases, it's different across the companies, often determined by the size of the company.  For the properties I manage for other people, it's usually me who suggests a rent increase as the PM.  I usually get a feel for or discuss the owner's desires and tolerance for rent increases along with my opinions of the market at the time.  Some owners are happy with the rents and don't want to take a chance on turning over a unit that could cost $1,500 for a $25 increase if the tenant decides to move.  Others want an increase every year and are happy to have the rent increased whether the tenant moves or not. 

A lot has to do with the market and supply and demand.  If there are many available units in an area I strongly recommend against an increase unless the rents are already low or the area supports it.  If there are not a significant number of available units available or rent hasn't been raised reasonably then I recommend it.

Currently, I see a lot of for rent signs when I am driving around downtown so if they decide to raise the rents you have a lot of options.  The PM should know that it will take time and money to turn the unit over so unless they have a waiting list or other people who are willing to pay much more it may not be worth it to give you a large rent increase since you can find another place to live fairly easily.