All Forum Posts by: Peter Mckernan

I would suggest to have plumbers and electricians on hand for any emergency's in that area.. If there is something that goes wrong and needs someone there right now and you are a few hours away, that is a huge save for money and costs instead of having you or your dad running out there with a long travel time. Those are the biggest things I would be concerned about.. Not having someone there that could be at the house 30 min to a hour after a call. 

I had some tenants that called me after being gone for 5-6 hours about a toilet leaking. It must have been leaking for 2-4 hours, and we needed to get insurance involved and all, but if something like that happened and they called right away.. With a plumber getting there in 30-45 minutes, or faster could have saved us so much time/money. 

The market across the country has increased in inventory which will/has been putting downward pressure on the pricing of properties. That is a what you/the investors need to be looking out for when buying. How much inventory is out there, and how much has it increased.. The US 1,450,000 homes on the market currently, and the last time we had that was back in 2020.. As we continue into a 2019-2018 style market (more inventory and less demand), you need to be very cautious on not only price you buy at when you buy, but the location is key even more than it was 2-3 years ago and functionality of the house too. 

My experience when a tenant has a stable job, and they have savings (not a huge amount) but some savings. For example in my area if they 3-3.5X the security deposit in savings they will be in a good position to stay for longer than one year unless they have some family emergency or something uproots them. If the tenant has 100K in their account or even 50-70K in their account they will be buying a home sooner than later and will be making a move quicker than someone you are looking to stay for 2-5 years. More money more options.. Of course stable job and same family local is another good indicator that will keep them there for longer too. 

I would get some local people in the area (neighbors) etc. see what they say, and see if this company did the same thing for them.. 3 year contract with the buy out too. The boots on the ground people that are working with the two different companies are going to be your best resource to stay or get the buy out.. Will need to be off their experience. 

Are you just replacing the condenser, or are you replacing the whole thing (ducting and forced air unit/heater). If you are just doing the condenser, I just did one for 8K for a 2,000sf house in CA. I would suggest as someone else mentioned, get more quotes.. You might be paying 4-5K more than you need to. 

I would personally open a business operating account from a DBA or LLC and put the SD in there for the rental.

I would say that 605 credit score is a huge factor. More of a factor than 2.8x verse 3x or 2.5x rent verse income. I would have a higher bar for credit score and depending on the revolving debt, I would have a lower bar than 3x if need be in the situation. You have to factor the current average income in your area too. If your average income is let's say 90K, but two cities over it is 130K.. You need to reflect that in your tenant acceptance (not saying to accept someone lower than your standards). It is all a factor, and of course anything can go haywire, you are just trying to mitigate the factors for it going haywire at all..

If you are siting on the market at a price of rent and those standards for longer than 30 days in CA in most areas, you are either over priced.. 

 Yes this is a good list, there should be some good resources from this guy too

https://www.instagram.com/the203kway/?hl=en

There are a lot of people that use Zelle, but if you are getting property handled by property management there is a lot of easy ways they do it through ACH! 

Bonuses are always better than doing a penalty.. That inspires the contractors to do it quicker and better.. That is a solid move.. 

1. If contractor is not getting material, try getting material shipped to project if people are there every day, decreases drive time for materials and slows the project

2. Have a templet for the stuff you will be doing on materials so you can order it right away once you close, no delays on materials (mainly focused for finish materials). 

3. No dump runs, all in big roll off for trash.. Some people seem to like a dump run to get things offloaded, the rolloff is way better and saves travel time

4. Damaged material, be sure to change on the fly if material in shipping gets damaged and you need to pick something else out instead so that it does not slow down the project.