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All Forum Posts by: Phi Tran

Phi Tran has started 5 posts and replied 10 times.

Post: Searching for Property Managers

Phi TranPosted
  • Posts 10
  • Votes 3
Quote from @Michael Smythe:

@Phi Tran

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “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

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊


 Thank you Michael for the response. I absolutely will educate myself on hiring a new PMC. I appreciate the advice and your time responding. Thank you!

Post: ADU San Antonio - Anyone have experience with this?

Phi TranPosted
  • Posts 10
  • Votes 3
Quote from @Shane Blackshear:

Ryan, I just spoke with a company that builds and consults on ADU's in Austin and San Antonio. I was told that my duplex which is zoned as R-4 and an ADU can NOT be built on the lot. Essentially R-4 is for single family and you can have a dulpex or an ADU but not both. I'm curious to know what you found out.


Hi Shane, I'm looking to invest in the San Antonio Area. Did you end up going through with the ADU. Do you mind dropping the name of the company you spoke to?

Post: Searching for Property Managers

Phi TranPosted
  • Posts 10
  • Votes 3

Hello, we are searching for a reliable property manager in San Antonio who can help manage LTRs. We are out of state investors who are expanding to San Antonio. Any recommendations would be appreciated. 

Thank you!

Post: Contractor Needed - Building Our Team

Phi TranPosted
  • Posts 10
  • Votes 3

Hello everyone! We are looking for any recommendations for reliable General Contractors in San Antonio. We are out of state investors looking to invest in small MF homes (2-4 units) or SFH with plans for ADUs. General Contractors with experience with ADUs preferred.

Any suggestions? 

Post: Traditional 401k vs Roth 401k

Phi TranPosted
  • Posts 10
  • Votes 3
Quote from @Kevin Sobilo:

@Phi Tran, its more complicated when buying a multi-family to house hack than it would be for just a single family primary residence.

Talk to your lender and CPA. They should be able to tell you how much of the potential rental income with count towards the income requirement and your CPA can guide you on how much you can comfortably afford in a housing payment. 


 Got it! I appreciate the help. I'm still in the early stages of this and just learning. I'm thinking about potentially investing in my hometown in the midwest. I assume it would be better to find a lender in that area who is "friendly" to investors or at least knowledgable about them, correct?

TIA!

Post: Traditional 401k vs Roth 401k

Phi TranPosted
  • Posts 10
  • Votes 3
Quote from @Kevin Sobilo:

@Phi Tran, do as your CPA says. Whoever told you that lenders look at net income is not correct.

For house hack you'll be using a conventional conforming loan. They look at two ratios with your income. Gross monthly income versus the mortgage payment and gross monthly income versus the mortgage and other debt payments.

https://www.investopedia.com/t...

What would be the best way for me to figure out how much we can afford in regards to a mortgage (aka limit that a bank will loan us)? I've heard asking for a pre-qualification might be a good route, as it won't hit our credit (as compared to a pre-approval). Is this true?

Thanks so much for your previous answer!

Post: Traditional 401k vs Roth 401k

Phi TranPosted
  • Posts 10
  • Votes 3

Hello everyone, I am very new to this forum and excited to learn. I have a simple question to ask, and realize the answer may be to speak directly with a mortgage lender, however I am wondering if anyone knows first hand what the answer may be. 

My wife and I own a small business and after the end of this year we will have 2 years worth of income. The first year our net income was $160,000 and this year we plan to make about $230,000. 

Our CPA is encouraging us to contribute max to our Traditional 401k, however I am wondering because this is a pre-tax deduction will this affect our "buying power"/mortgage amount in the future? Would it be better to contribute to a Roth 401k? 

Recently I was told that when applying for a loan, only our net income is considered and not our retirement contributions, is this true?

2023 Plan: Acquire a multifamily property to house hack. 

Thank you!

Hello everyone! I'm starting my multifamily journey and am just analyzing properties at this time. 

I came across this multifamily which seems to cashflow based off rental estimates. I know there is a lot more that goes into it (calculating expenses and doing due diligence) but I am just screening with the tools on BP. 

Interesting Zillow says the unit was just sold this month on 11/9/22, and now they are selling it just later this month for 99k more. Is this a red flag? Interested to hear your thoughts on whether it is a good deal, or hard pass. 

Thank you!

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



Quote from @Michael Warthen:

@Phi Tran I have found a few that break even or slightly cash flow so keep looking! I have some other thoughts as well, if they don't cash flow are you willing to hold them until they do while hopefully getting appreciation? Are you renting out your current primary when you do this? If so, after renting out part of the multifamily, will the amount you have to cover be cheaper than your current mortgage, if so, that could be a win. If you can hold it for a few years while not cash flowing much, depending on the area, you may find greater appreciation and higher rent and it will make it all worth it. I am new to all this as well but that is the feedback I have seen on here and heard on the bp podcasts. Good luck on your investment journey!

Hi Michael! Thanks for your input. Right now we can cover our current home's mortgage. From my understanding with an FHA, we will have to make the AZ home our primary, but she would still like to use our current home as she has a local business here. 

I think I would be willing to "break even" on a property right now, but would of course like for it to cash flow a bit. From my understanding on here is that I just got to get my feet wet as the "first deal" you find isn't usually the best. We will see how everything turns out I guess in around 4-6 months, but I figure why not start learning now!

I think I was more concerned that I wasn't inputting numbers correctly on the calculator, because everything right now seems like a horrible deal. But perhaps this is more of a function of the entire market. I appreciate the input!

Hey everyone, so happy to be here and begin this journey to financial freedom. 

I am starting out and am very new to the idea of real estate investing. I have read several guides here on Bigger Pockets and watched a webinar recently on Multifamily Homes.  However when I have searched for Multifamily properties available on Zillow, the numbers don't seem to ever add up (negative cash flow always). Is this just the market right now or am I making mistakes?

My situation: In about 6 months I would like to move to the Phoenix/Scottsdale area. I will have a part time job there for 2 half days per week and am looking for a multifamily where I can potentially house hack and get an FHA loan. I am self employed but without 2 years of income sufficient for a conventional loan. My spouse however (w/ primary home in another state) has sufficient income in the $150s. I am trying to start learning how to analyze deals now, so that in the next 6 months we can pull the trigger.

Any advice is appreciated!

Thank you!