All Forum Posts by: Michael Smythe

@Aj Escomiendo

If you're not going to personally see the property, then you'll be reliant on others and they may be crooks or at best, just not have the same goals as you.

So, you'll want to form a Tripod Team: Agent, Lender & Property Management Company (PMC).

Agents & lenders are transaction based, so few of them will really "be there" for you if something goes wrong after a sale. The PMC you hire will have to deal with whatever you buy until you sell it or you part ways. So, you may want to get them involved on any purchase ASAP, for their feedback before you sign a purchase contract.

Regarding selecting a PMC, they can make or break your investments! When a property owner first contacts us and their initial question is "how much do you charge?", it's a sign they have no clue what they are doing. If they knew what they were doing, their initial questions would be about the services offered and systems in place to deliver those services consistently!

We recommend you read our series here on BP: How to “Screen a PMC Better than a Tenant”: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

If you focus on putting together a good team and can get them working together, you dramatically increase your chances of investing long distance successfully.

@Carlos Garcia there are MANY new options on the market, RentRedi, TenantCloud, Apartments.com, Hemlane, Rentec

The biggest problem we've observed is as you state, finding an "easy to use" solution.

To do everything that landlords want, is not always easy. SO you must invest time in learning the software!

@Larry Landry most landlord leases state that appliances are as-is & where-is, so they don't have to repair them or remove & store them.

Of course, for a great tenant, or to negotiate a lease renewal, you can also volunteer to address a repair issue:)

Instead of spending the money upfront and finding out the W/D doesn't make a difference, just put in your ad, "W/D negotiable dependent on tenant qualifications and lease length". Then you can negotiate depending on the applicant.

Check your state and local requirements as some require them in rentals no matter what. Same is often true for S8.

@Bryan H. connect with us:)

This is not required.

Per IRS, you must send owner a 1098_MISC for ALL funds you collected on their behalf, including utilities, etc. 

You then supply the owner with an annual statement of income & expenses, so their tax professional can prepare tax return.

@Bryan H. The City of Detroit doesn't do 1-2 family rental inspections themselves, unless tenant calls and is then bad news. They have a list on their website of who to use.

Recommend you dive into Detroit's website area about all this:

https://detroitmi.gov/departments/buildings-safety-engineeri...

@Arlene Arricaberri we have the same problems with water bills in Metro Detroit, even moreso as they are NOT allowed to be taken out of owner's name.

What we do: per our lease and management contract, we pay the bill from owner's funds (rents) and then bill the tenant. When the tenant pays, we credit to owner.

This avoids the owner being penalized via late fees and lien issues, due to tenant nonpayment.

We do charge tenant late fees and even start eviction proceedings when needed.

@Chris McClellan check out some of the great things happening in Detroit this year, one of the best cashflowing and appreciating cities in the US!

https://michiganchronicle.com/2024/01/03/major-developments-that-will-define-detroit-in-2024/

Hit me up if you'd like to know more.

@Chris Seveney fools and their money are soon parted!

We see similar issues with fools (won't call them investors) buying properties with little to no REAL research. 

They buy Class C & D properties expecting Class A results - and it's everyone else's fault when it doesn't work out.

@Frankie Betancourt need to more to give you practical advice!

How did they gain access to the property?

By LEGAL definition a squatter is someone who BREAKS into a property. 

If they were given access by an owner or other tenant, they are not legally considered a squatter.

We have a lot of experience with this in our 24-year history. So, DM me for a call about other interesting options...