All Forum Posts by: Mike Strodtman

Hey Steve- It is great to see you are setting up a local meetup!  I would like to make it although have another commitment that evening.  Hopefully I can make one in the future!

Great information and exactly what I was going to share.  It is wonderful that we have a resource like Bigger Pockets to share information!!  Can't thank them enough!

I agree with Tim it is well worth the money.  Be sure to buy their book also!!

That makes a ton of sense!  Thank you!!

This building is 2 hours away.  I manage the 18 units I presently have because they are very close.  With 2 hours I think it might be a little too far. 

The building is in a B area.

Looking at a 14 unit building and they presently have a Resident Manager and a property manager.  The property management company pays the Resident Manager to vacuum the halls along with general clean up of the property and are the eyes and ears of the property. This person is paid $246 a month.  The management company is paid 7% gross rent.

Do you feel a Resident Manager is necessary for a 14 unit building? 

If you have a Resident Manager do you have a specific list of duties for that individual?  Do you pay them or deduct it from rent and how much do you pay them?  Any other information you would like to share would be greatly appreciated.

I use a couple different banks.  One I do all my lending through and the other is where I deposit rents pay bills etc because they have a great online system.  Each month I have an auto deposit to the bank with the mortgages and they auto debit the account to pay the mortgages.  Has been a great way to do business.

That is great advice from John. 

The last thing you want is to think you bought a property 2% DSCR and having to stick every penny into repairs. Having to remodel a bath, putting on a new roof, siding, AC unit, etc will eat up all your cash flow in a hurry!

Inspect the building and then each unit and layout a list of what will need to be done each year and an approximate cost.  This isn't a bullet proof way but will give you a better idea of what you expected the cash flow to be and what it actually will be.

Hey Ron- I'm up in Bemidji, MN and my focus area is about a 45 miles radius.  Wondering if you would be willing to share where you were able to get the foreclosure list.

Personally, I would do what it takes to get the first property complete and maximizing its potential before grabbing another. Once you complete that then could consider refinancing but make sure you have money in reserve for the rainy day!