All Forum Posts by: Peter Tverdov

Cash is king. Sounds like you want to keep leveraging while having very little cash available and without using any of your own cash. What happens when the storm comes and you need all that cash but your houses are maxed out equity wise and your reserves are poor? 

I'm all for growing, but be smart. What goes up, must come down and that includes REI. Not everyone who is leveraged out their behind survives.

I would never even hesitate to call an exterminator. It's inhumane. Squash the problem before it becomes a bigger problem. Don't be penny wise pound foolish guys. 

Here's what works VERY well for me.

I tell them to please text me one hour before to confirm they're coming. If they don't text me, I  don't show. Follow my simple directions. If you can't, you basically just eliminated yourself. 

I would classify East Orange as the same as Irvington, Paterson, Newark, Trenton and Camden. Unless you are from there or have very thick skin for volatile tenants, I would proceed with extreme caution. There is money to be made in all of those communities and the cash flow is probably very fat compared to other areas in NJ, but just know the area well before diving into a tough town.  

I've always been told by a lot of investors that vacation rentals are a money pit. My FIL looked hard into buying a home down the shore for several years and we had a good talk about it this summer. After expenses, you are making probably a 5% return on your money and that's if you and your family never stay there for a week. That's also if you find a great realtor/property manager to keep it rented and if another storm doesn't come. Just doesn't seem worth it to me but I'm sure there ARE good deals out there. 

Personally, I don't like investing outside of areas I don't know like the back of my hand. You have to put your trust in someones hands and therefore your PnL rests on their shoulders. 

I think $350-$400 is a very good price for 30 windows. I just hired someone to do 3 windows in an apartment of mine in NJ for $435 a window. Cheapest doesn't mean good. I never hire the cheapest guy. You'll get what you pay for. 

What about doing it online? That's what I was doing. I would get the e-gift card, enter the number in online and do in-store pickup. I haven't done it since November though. 

I can tell you what I do. I became a licensed property manager (supervised by a broker) in NJ and specialize in Middlesex County (feel free to reach out to me people). I normally charge a 10% flat fee of gross monthly rents. I don't charge any other fees. Nothing for maintenance/repair issues, nothing for showing and leasing the apartments. For student rentals I charge 8% flat fee and will go down to 7% depending on if there are multiple properties and if its a larger building. 

I like to think I do a pretty good job and might consider turning it into a bigger business as I build up my book. Right now I only have three properties that I manage (including my own) but I do a darn fine job and everyone (owners and tenants) is pleased with me. 

ALWAYS get an inspection. It's a few hundred bucks. Think of it as an insurance policy that could save you thousands. 

I started using erentpayment.com

No complaints so far. $3 fee charged per tenant and clears quickly into your bank account.