All Forum Posts by: Michael Smythe

@Josh Haney search here on BP for a three part series we did on "How to Screen a Property Manager better than a tenant"

Can't share the link because one of the over-active moderators will chastise us for "self-Promotion":(

@Michael Primavera search here on BP for you answer

@Wes Glass nothing you can do unless pet causes issues for other tenants.

@Caroline Gerardo Emotional Support Animals are protected by Fair Housing. Your answer is not really clear about that.

https://www.humanesociety.org/resources/fair-housing-act-and...

@Michael Primavera S8 is NOT a cure-all!

You're just trading direct-pay tenant issues for S8 issues.

@Jay Hinrichs is 100% correct!

RE investors MUST understand the Class of the property they are buying and the corresponding pros & cons - else they will lose their investment.

Evaluating a Class C property like a Class A is beyond foolish!

We can make most Class C rentals in the City of Detroit (our market) work, but we can't deliver Class A or B results (at least not consistently). 

Not aware of any PMCs that can make Class D properties work consistently. How does ANYONE motivate a tenant with a credit score under 560 to consistently pay rent on time? They have NOTHING to lose and aren't really afraid of an eviction.

@Vincent Fiorilli most MFR listings will have Proforma information.

Proforma is just "code" for, "this is the best-case scenario" - which will hopefully get the seller the highest price.

You SHOULD always so your own evaluations and ask for documentation from the seller to support their numbers.

@Madi Wagaman make sure you learn why this is so important:

"If you don't ask the right questions, you won't get the right answers."

@Hayden Clark Going to challenge some of your assumptions.

1) If you buy in the right area, after 2-5 years rents from both units should more than cover the mortgage PITI.

2) Why can't you do all this with a 2-4 unit property?

3) There's a significant shortage of housing in the USA currently. So, how likely do you think the chances are that property values will continue to increase and at best you'll be treading water by waiting to buy?

Only YOU can respond to our challenge questions:)

Yes a PMC can handle all that.

A really good one will also challenge why you want to sell on Lease-Option. If your reasoning can stand up to questions, then it's a good idea.

@John Kim there's a lot of truth in what @Greg Scott writes.

We manage almost 700 doors, almost 100 of them being S8.

The biggest mistake we see investors make is not understanding the Class of property they are investing in and not adjusting their ROI equations correspondingly.

My manager Drew owns several rentals in the City of Detroit that we also manage. They have their problems, but they are overall profitable.

Let us know what we can assist you with.