All Forum Posts by: Michael K Gallagher

@Devang Patel I tend to think that investors get caught in a feedback loop about what the "right decision is", and this tends to just lead to inaction.  If you take away the "right and wrong" and simply think about what you want long term...it makes it easy to align your current decision with that long term goal.  If you want to live passively off of rental income in the future, it makes sense to hold onto your assets currently.  If you don't need that income in the future and have identified another investment vehicle that gets you closer to that passive lifestyle, perhaps in a different state...by all means go for it!  perhaps you want to cash out and throw the money into a fund like Open Door Capitol and just let someone else handle if for you...thats a great option too.  The point is to think about the end, and then simply ask yourself "what is the next best step I can take to get me closer to that goal?"

I find doing this cuts out the FOMO associated with "doing the best or most correct thing."

@Courtney Oldrin I see you are a pro member which is fantastic!  If you didn't know one of the best pro member benefits is the state specific leases and documents that BP provides.  Thats what I use here in Ohio.  I did specifically tweak the lease to meet my needs but for the most part it covers most things you should think about and is a great starting point.  If you accept pets then I'd suggest looking up a simple "pet policy" on google and using that as a template.  Just something to have in writing to clearly define what is or is not acceptable.  

As far as tools, I currently use Zillow's built in features for all the documentation.  Its $9.99 a week to advertise, and the tenant screening is free to you.  The tenants pay a 35 dollar application fee to Zillow, they run a background check, a credit check etc.  Then from there I highly recommend actually following up and validating all the information.  If they list an employer, I don't usually call that number, I google the employer, and call that public number and ask for the person of reference.  I just like to leave no way that the applicant is "faking" the info. I'd also suggest confirming the criminal background check on the county's website, and calling previous landlords, again to confirm.  If you deal with a larger PM company you will need the Applicant to fill out a release for the PM company to give you that info.  Then normally most big companies want you to provide a "questionnaire" of sorts.  Again this can be found anywhere on Google, but if you are having trouble, shoot me a DM I'm happy to to provide the one I use.   

Then I also Like Zillow because you can use their lease and document signing feature included in the portal to electronically provide and sign the lease, as well as get your deposit and payments electronically.  I know there are other platforms out there that do the same thing...I've just always used Zillow and have had a great experience with it so far.

Again, if you need any examples of documents or templates I'm happy to provide them!   

Hey @Carolína Ortega welcome and congrats on the early success! I'm not a CPA or Tax person so do your own Due Diligence on this one, but I myself have set up an LLC and filed for S-Corp Status. Then your brokerage would just pay your LLC rather than you. Essentially if you use something like Quick books online, or something similar it allows you to pay yourself a "reasonable salary" which you'll want to do some digging into your area of what that salary is. But then essentially you pay yourself that income in a W2 type way where the SS, Unemployment etc is only applied to that salary portion. The rest of your income you can take as a "distribution" which essentially means it is considered business income which only has income tax applied. So its a good way to cut out a significant amount of "FICA" taxes.

Other than that I'd say the biggest things is to keep careful track of miles, thats a big deduction that does not come into play so much when applying for loans (at least I'm told by other agents/lenders).  Again Quick Books Online has a pretty nice app that can do this automatically for you.  

Good luck and congrats again on the early success!

@Joe Miller welcome and congrats on jumping in!  persistence and consistency is for sure the recipe for success.  Hope to see you around cbus sometime soon!

@Nate Secor I'd agree with @Marc Rice and @Steven Foster Wilson about Columbus OH.  In that price range you can get into duplexes as well here and increase the gross monthly rent over a single family.  Depending where in the area you buy you can get into a nicely rehabbed on market duplex for that price range, that should fetch in the $950-$1200 per side range (that's fairly conservative, depending on the area you can push 1400 per side), again depending on the property itself and location.  

@Keenan Steverson I agree with the sentiment here. My application criteria is as follows:

- 620 credit score

- 2.5-3X gross income to rent ration

- no criminal background.

If they meet all of that, and the references/information checks out...they are automatically accepted and I present them with a lease.

If they do not meet 1 or more of the above, I work with them to get additional documentation and references if they are still interested.  I

@Steve Baldwin Count me in!  I have a pretty large fenced-in back yard in Franklinton, and would be happy to host one of the meetups if that would be value added.  

@Anthony Buccanero if you are a project manager and are comfortable with processes and "following the lease" and it sounds like you are treating this like a business from the beginning so I'm sure you all will do very well.  There is a ton of uncertainty in the beginning but trust me, if you are comfortable with those things, thats where most people fall behind and get into trouble.  I think you'll find that you will become very comfortable with it all very quickly!  I can't wait to follow along in your journey and hear more!

@Brian Keegan honestly, if your attitude is "any realtor can sell it" just FSBO it. If you see value in a realtor and they are not getting anything on the "buy side" because you are moving out of state then pay the full commission. In my opinion you get the service you pay for. Discounted cost gets discounted service.

Totally just my opinion though.

@Corazon B. Honestly it’s the simple stuff....run them through an application process like on Zillow where they have to pay, that filters the not serious ones out, and then just actually call references/jobs/employers to confirm the info. I set some some guide lines for my tenants...example: 600 credit score, 2x income to rent multiple, and no criminal background. If they meet all that and the references check out, it’s an automatic application acceptance and I present them with a lease. If they don’t meet one or more of those I’ll ask for additional documentation and or references and take another look as a whole. But you need that standard in writing and published and to follow it to avoid any discrimination issues.