All Forum Posts by: Michael Smythe

Duplex rental. Learned a lot self-managing.

Why settle for pics? Everyone has a cell phone that allows video.

So, you can either REQUIRE narrated videos of do a live video chat and have your PMC walk-thru how you want them - while recording it.

but why do so?

@Alex Stratton look into RPOA group in your area for better referrals!

@Luca Perinuzzi depends on the Class of properties you want to invest in and the amount of info available to help you do so.

Here's some copy & paste info to think about...

We think the Midwest is a GREAT place for OOS investors to consider!

YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods:

https://www.biggerpockets.com/...

(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)

Your biggest question shouldn't be WHERE to invest, but HOW you will invest!

Many OOS investors set themselves up for failure because they don't invest the time to ACTUALLY understand:

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Let us know if we can help in any other way.😊

@Anthony Freeman we manage them

Type 1 actually consists of two different types:

1a) Large companies committed to profits, offering low and/or flat fees to get investors to hire them in mass quantities, but are using poorly trained offshore workers to handle everything remotely.

1b) large companies committed to service, not offering teaser rates, so they have the cashflow to offer better services.

Buying turnkey has the advantage of low time investment.

The negative is you are overpaying, which lowers your return.

It's really not the age of the structures - it's how long has it been since the underlying systems have been updated?

Electrical, mechanicals, plumbing, windows, etc.

Just read a story a few weeks ago about a landlord that had around 11 RV's he was renting out and the city shut him down for health code violations.