All Forum Posts by: Mark Kelley

Is this a property local to where you are? If so, you might shop at at a couple local / regional banks to see if they can do better. Could also help you over time to start or continue building bank relationship. 

If I were in your place, I'd go for the 30 year. It gives you options. You can pay down mortgage faster if you want by contributing more to principal, or you can invest, or you have more room if forced to lower rent in a downturn and still hopefully cover PITI.

I manage my own properties and have no experience using a property manager, but it seems from all I read on BP that there is often conflict between property owners and property managers. It seems a lot of the ire comes from owners who feel PMs are not doing a good enough, cheap enough, fast enough job. 

Why is there so much friction? Are there certain types of property manager and owner arrangements that work best to reduce potential for conflicts and align goals?

I agree with @Account Closed (again!). I own in a college town. Marketing more narrowly to grad students can get you a 2-3 year tenant that's beyond their party days and will spend much of their time studying. 

In recent years, I've rented to recent grads who have gotten jobs in the area after school, and that has worked well too.

Keep the parents out of it. I dealt with a mom once who wasn't even on the lease, and it was horrible. Her daughter (tenant) had a falling out with her roommate and went home mid-semester. She deferred to her mom to clean up the mess, who went nuts confusing reality and the stories her daughter conjured. She made stupid threats like 'I'm going to get her father involved.' It was a mess. 

I don't know much about wholesaling but know a lot about the web. A proper website and SEO strategy will most likely take more time and money than a proper direct mail campaign. If only choosing between the two options you outlined, direct mail should yield faster, more targeted leads than a website combined with SEO to capture organic search leads in short term.

Hi @John Burtle. Thanks for your service. 

I'm not a financial adviser. You seem to have the right idea though. Getting rid of the credit card debt is a good first step. The value of that truck seems really high relative to your income. You mentioned refi, though it may make sense to sell it and get a less expensive car to free up some debt for real estate purchase. 

As far as the first house to purchase, you might seriously consider 'house hacking' an $80k duplex. Live in one side and rent out the other. The rented unit might cover your entire PITI for the duplex, putting your cost of housing to near zero. In the meantime, use your income to build up reserves to purchase another house (or duplex, triplex, whatever) in a couple years. If you move out of the duplex into that new place, then you can have a duplex renting both sides, and you are 1/15 on your way to 30 units.

@Thomas Giganti I am optimistic about the Raleigh market. A lot of great things happening with downtown, universities, and pharma and tech companies, though there are of course some downers too, like HB2 which made us all look backwards and brought national ire from the public and orgs like PayPal and the NBA.

In my current RE activities described above, they reflect a combination of both my views on the market and my personal interests and goals. I'm bullish on Raleigh long term, though short term I'm interested in getting my current investments on solid footing, banking a bunch of money through my day job (tech) over the next years, and being patient for a pullback or better buying opp whenever it comes. Surely there are still great deals to be had in Raleigh, available to people smarter, faster, and more ambitious than I am right now.  

I am a part time investor and only recently getting serious about my strategy. I have tons to learn as well. Given the hot sellers' market in my area, I'm moving towards a position of safety and strength. Locked in low long term rates. Unloading a marginally performing rental to free up some debt to buy a better property later. Dialing in property management and rental pricing. Bulding relationships. Growing cash reserves to be ready for a better (easier) buyers market for a casual part-timer like myself. 

Certainly interested to hear what others are doing. 

On one of my single family homes, I gave the tenants an option to purchase lawn maintenace for $75/mo when they signed the lease because they did not seem the type to mow, edge, and blow. I pay someone $50/mo on avg to do it. Not big difference, but a difference and don't have to worry about tenant neglect. 

I'm a part time investor in my 30s who is operating without a long term plan :facepalm: with a lot to learn, but it seems the best exit from a couple old single family homes I have in class A areas will be tear down / new construction after holding them for 10-15 years. I'll likely reinvest in a different asset class, so it's not a permanent exit.

Thanks @Account Closed.