All Forum Posts by: Peter Stewart

The 9% rate is under the norm for Indianapolis. Most PM's in the area charge 10%. Now, once you get a few under management with them, you might be able to negotiate that down a little. But at least for the first one, 10 is the norm.

I agree with the replies so far that the $100 placement fee is way too low. I typically see 1/2 to a full months rent. 

Like with anything in real estate, you get what you pay for. Be wary of a PM that seems "cheap" with their pricing. A bad PM can cost you a lot of money in the long run, and a good one can save/make you more than you would have saved using the cheaper option.

Indianapolis is a very affordable market as well. Many people looking in OH also look in Indy, and many stop looking in OH to focus on Indy after comparing the two. You can still get cash flow here and you can do all 3 major strategies (short, medium, long term rentals) as well as BRRRR's and flips.

Here is a link to a BP podcast I was on discussing the Indy market: 

If you want to chat more about the Indy market and the opportunities here, you can schedule a call with me: https://calendar.app.google/acFPv7ZPzwHef42A6

It depends on how big the property is and what amenities it has. For example, cleaning a 2br condo will be much less expensive than a 5br home with a pool and hot tub. 

Also it depends if you hire a company or if you are hiring a person and paying them hourly - the hourly cleaner will be cheaper, but there's more management involved on your side.

I pay $120 per turn for a 2br condo. When I was self managing a 2br cabin I own, it was $160  because they had to drain and fill the hot tub each turn. However, once I handed that property off to a PM, the cleaning fee went away because it was part of the management fee (they have in house cleaners). 

Automation is KEY to self managing STR's. I have been doing it for several years and continually get 5 star reviews for my properties.

95% of my business is automated. 

I use Hospitable to manage my calendars (Airbnb, VRBO) and for guest communication. I tweaked all their automatic emails slightly to match my style and specific info I wanted to share with guests. I only have to jump in when there is a specific question or issue from a guest. 

I use ResortCleaning to automate things with my cleaners. I have 0 communication with them unless there is a problem (guest complaining about something). 

I use Pricelabs to automate the dynamic pricing.

I use a digital guidebook to provide all the information about the property and the specific units to my guests to minimize questions from them.

I push all guests to communicate via the Airbnb/VRBO apps, to minimize disruptions on my personal cell phone or email. 

All of this allows me to manage the properties remotely with minimal time spent. And, I have no guest issues in regards to communication - in fact, I get compliments all the time about how responsive I am, they thank me for checking in on them, etc. (all automated emails for the most part). 

I maintain my Superhost status on Airbnb every year and the properties consistently get 5 star reviews, and my places stay booked.

So, for me, automation has been critical to my success. 

I use: https://www.therealestatecpa.com/

They work specifically with RE investors. I saved so much more $$ when I switched to them. 

Ouch. I have heard so many stories just like this from people who have purchased from turnkey companies.

The refi is one way, but you'd have to have a big rate cut to free up $450 (unless this is a high-priced property). And that could be a few years away, so you'll be losing $$ until then.

Could you convert them to medium or short term rentals to boost cash flow?

Last option is to sell them - do a 1031 and roll your proceeds into a better performing property. 

Any good PM in your area that specializes in STR's should have connections to people/companies that can handle all that for you.

I personally have multiple STR's that are out of state and I had to furnish several of them. In fact, I just got done with one in FL 2 weeks ago and put it live on Airbnb over the weekend. I had to drive down to the property 2x to get everything done myself. Maybe not the most economical from a time perspective, but it was from a $$ perspective. And like @Chris Watson stated, being there in person and staying for a few days gives you intimate knowledge of the property so you can work out any kinks, and it's much easier to answer guest questions, diagnose and solve problems, etc, when you personally know the property inside and out. And, when you do all of this stuff yourself, it makes it SO much easier to put an inventory list together so you have information on everything in the property (where you bought it, price, SKU #'s, etc) so when something breaks, needs repair, needs replacement, etc, it's that much easier to handle. 

For furniture I went to a local store with a location in this area (I am in Carmel, IN and the properties referenced are both in Destin, FL - Havertys is in both). I picked out what I wanted and set up the delivery dates. For the first property I did, I had someone in the building meet the deliverymen and paid them a small fee for their time. For the 2nd one, I timed it so I was down there for the delivery.

For decor and all the misc stuff, it was a combo of ordering what I needed online (Amazon, Wayfair, etc) to my personal residence, and then I drove everything down there. For anything I was missing, I would go to the local shops. Between Target, Walmart, Hobby Lobby, and Home Depot I was able to get all the remaining items needed. 

I 2nd what Jaron said - we need more information to accurately answer your question. Central IN is a very broad area. Is the property in Indianapolis proper? Or in a smaller town like Terre Haute?

I cover Indianapolis and the surrounding ~30 miles and have clients doing both strategies. If your property falls in this range let me know and I can provide more specific guidance. 

There are some popular nationwide companies like New Western - you can check to see if they are in your area, and if so, get on their list. 

Otherwise, some simple google searching should bring up others. Try "sell my house fast or sell my house for cash" and include whatever city you're in. That should pull up some of the top wholesalers in your area, and then you can go to their sites and request that they add you to their buyers lists. 

You can find them on FB marketplace too, but be careful - there are many scammers out there.

Hire a property manager that knows how to properly market the property. If they can save you a month of vacancy, that just about makes up for the 10% they charge. Add in the saved time and avoided headaches and hassles of self managing, and you'll find the cost is well worth it.