All Forum Posts by: Thom H.

Winston, there are obviously lots of factors that would come into play in carpet replacement decision. I have multi-units that I'll get three or more turn-overs before replacing by steam cleaning the carpets between tenants. I have others that rarely turn over, and the carpets are 10+ years old, and still look great. I've also had a couple of nightmare tenants that stained the rugs in a one year lease, that required me to replace after one year. My bottom line, if they look worn or have significant stains, they come out and get replaced. A clean newer unit will rent much quicker. The quality of the rental unit itself also determines the quality of the carpet and padding for me. That's a question of competition in your area (higher end may require higher quality and more frequent change outs). Hope this helped.

Justin,
Welcome to the BP nation. Good to have another service member on the site. Thank you for your service to our great country! It sounds like you have a very good head on your shoulders at the ripe old age of 21yrs old. I have an Army daughter about your age, and I'm encouraging her down a similar path. You guys have won half the battle already, just recognizing the opportunities in RE at such a young age. The biggest asset you have on your side is "time" at this point. Learn as much as you can through this site and the other avenues you've mentioned. Ultimately, the best source of knowledge will come through first hand experiences when you finally take the plunge. You can reduce newbie mistakes by asking lots of questions up front ( this site is great for that). Take advantage of the VA loans, which are a great resource as a service member. I'm not an expert on VA loans, but I believe you'll only be able to go so far with that resource in terms of number of loan (max of three?), but it's a great starting point. And with "time" on your side, the earlier you can start the more time you'll have to compound your long term growth. I'd encourage you to join your locally REI group, and find a good mentor in your area. Best of luck and again... welcome!

John, I would suggest reconsidering your long term objectives (which really haven't been stated). You need to determine if your risk/reward is related to appreciation or cash flow or a combination. I just don't see this deal worth the risk from what has been provided from a cash flow perspective. You're taking on a lot of debt for too little return on cash. Chalk this one up as a "win" from a knowledge perspective, and move on to better cash flow opportunities (unless I'm missing something on the appreciation side...but I would caution there is a fine line between appreciation investing and gambling!). Best of luck in your decision.

Jeff, great posts...couldn't have put it any better. I have both, and would never have been able to scale up as quickly without the growth from my MF's because I started investing in RE later in life. But I do love my handful of cash cow SFR's too and will continue to hold them long term. Either can bring you wealth over the long haul if structured appropriately, it's just a question of how fast you want (or need) to grow...MF absolutely provides a unique opportunity to scale much faster for the reasons you've already stated above.

Very cool guys. Thanks. Setting up for VA (Virginia) now!

Welcome Jimarcus. Wish I could help you with the contacts in Atlanta, but I'm sure others from the BP nation that are more familiar with your area, will jump in with those recommendations. Keep reading this site, it will provide more knowledge than you'll find in any other forum. Best of luck!

I own almost all MFR's (currently selling my only remaining SFR). I've always read how everyone says MFR's have higher turnover, but thats not my experience. I bought one MFR that came with long term tenants (one has lived there since 1982, another for 16 years). I have several others in various eight-plexes that are 10+ years, and more than 70% of my tenants are 5+ years. My units are middle of the road, blue collar type units (not lower income, but i do have a couple of Sec 8's, and they are good tenants). As with any investment its about the numbers, and ultimately the returns. I just find better returns with MFR's, due to the economies of scale in my area. I know there are reduced numbers of buyers when selling larger MFR's, but with strong returns, I have no desire to sell. My kids can deal with that "lucky problem" some day.

From my perspective, use a good PM and the only headache you have is remembering to enter the direct deposits each month! ...voting (and loving) MFR's in Virginia!

Randy,
When you do this long enough, you'll see renters do everything under the sun! Grills on decks are nothing...Hey, maybe a good post to start..."what's the stupidest thing your tenant has done to you rental?!"

Jason,
It looks like Sharon already chimed in on the REIA questions, you could probably go a few times before you join to make sure it's going to be of value. To be honest, most of the value will be the interaction with other members. You will surely find someone there, that will answer questions and help you get started with the basics. They will also likely be able to help you identify properties that are in your price range. As a beginner, you will likely run tons of scenarios before you find your first investment. A good mentor will help you learn the ropes, and hopefully help you avoid the newbie mistakes we all have made! The other perks of the REIA are just fluff. It's about making contacts.

Christopher,
Depends on you objectives. If holding for an extended number of years, I'd go trex. If flipping quickly, keep the investment low, put a nice wooden deck on an be done.

The trex will pay for itself in re-staining costs in 2-3 years if you're holding long term. Of course, you always need to consider you competition if flipping quickly. What does the typical unit have in your area? If high end, and the competition has all trex units for sale...then go trex so yours competes on an even playing field.

For what it's worth, in my area I purposely stay away from decks for the maintenance reasons and insurance reasons (my ins carrier makes a stink about grills on decks of rentals...something about careless renters, lighter fluid, and burning buildings!....personally I just think he hates us BBQ lovers!!). Anyway, gimme a good multi unit with concrete patios any day! ...better yet no back doors at all (no deck to stain and no extra door to paint!)