All Forum Posts by: Richard C.

 I agree that they are not expecting top-of-the-line.  I disagree that they are not expecting new, especially in a recently-rehabbed flip.

 OK, so it is an 18% discount.  Your hypothetical was a house renting for $1000, which is how you arrived at the $1200 amount (12,000 x .10).  That $1200 is 18% of $6666.  Are you claiming that people are seeing homeowners insurance bills of $6666 on houses that rent for $1000 a month?

You know the other thing I don't really care for about property managers?  Made-up numbers.

Well, something for everyone I guess.

That is not quite the way it works. It is always going to be included in your DTI. What does happen over time is that you get to count some percentage of the rent as income.

For my bank (credit union, actually) it is 75% of the schedule rent, after showing 2 years of income on a schedule E.

I have heard on here of others doing much better, so your millage may vary.

Please, tell me more about how having a property manager can save me $1200 on my insurance bill!!! 

BTW, my insurance is currently running right about $1100 per property.  But please, tell me which insurance company will pay me to provide coverage!

Stainless or not might be a valid debate. Appliances versus none, there isn't even any debate. You've got to do it. At $140,000, you are in first-time homebuyer territory. Might very well be an FHA or VA loan with a minimal down payment.

Your target buyers, in other words, may not have the money to drop $3k+ on basic appliances.

I expect not having appliances will result in a much higher days on market than if the house were ready to go.

...could they?  :)

http://news.yahoo.com/satanic-temple-holds-public-...

I believe that all real estate professionals, including property managers, add value.  The question is whether the value they add is worth the expense.

The pricing structure needs to change.  I have said, and believe, the same of agents.  There is nothing about a property manager's job (or an agent's job) that could not be done on a fee-for-service basis.  The 10% monthly fee is quite simply excessive, except in the worst neighborhoods or most challenging properties.  And the rental fee (which here is typically one month's rent) is frankly absurd.

Other points:

1.  My properties are local. Turning them over to a manager would LESSEN not increase, my peace of mind;

2. The "trusted list of vendors and handymen" makes my alarm bells go off.  At the very least, such an offering adds no value to me, and my suspicion is that I might end up paying the idiot brother-in-law of the manager an exorbitant rate.  I'll keep my own contractors, thanks; 

3.  Likewise, appfolio web access is NOT a value add.  Managing myself, I don't have any need of such a thing.  If a web portal is necessary for me to feel comfortable with how my properties are being managed, then it is a cost of doing business for you, not a service to me.

In summary, then:

Fee-for-service model with meaningful value-add.  And I'm not seeing it.

 Those burn the best.

Most of the others, I just toss in my dumpster after I pull them up.

On the Super Bowl broadcast, why do they not show the equipment check?