All Forum Posts by: Larry Seith

Hey Jon,

Did you have to pull back the hanging beads out of the doorway to take that last shot?

OK Jon,
So we agree about the numbers and calculating if a property makes sense.
But I don't think people should be afraid to invest away from your local area if it cashflows. I own properties that I have never seen and they work just fine for me. I don't want to be a property manager. I hire people to do that for me so that I'm not tied down to a "job".
In my opinion, I would much rather buy a property somewhere else that cashflows after paying expenses (including management), than pay the much higher rates that people demand (even motivated sellers) here in my local area and not have cashflow.
I do agree with Richard that you need to find a good property manager, though.

"Region has little impact on the rental numbers."

Jon, I think I need to disagree with you here. Different parts of the country have huge differences in rental numbers.
We all agree that for something to cashflow, the market rents minus expenses must be higher than monthly debt service. And there is a ratio between rents and real estate prices. But the range of rents is usually much narrower than the range of real estate prices. So while a typical 3 bed, 2 bath house could rent from $700 to $1500, the cost of that house could be anywhere from $15K to $500,000K depending on the area of the country. Therefore it is much easier to make things cashflow in some regions than in others. And that's what good property managers are for. As the experts say, "Live where you want to but invest where the numbers make sense!"

Hi Todd,

Nice looking website! Very clean with the appropriate amount of "white space."
Only complaint would be that it looks a bit crowded at the bottom of the home page with the long list of cites and the long description of property types. Maybe those could go on a seperate page? Just my opinion.
Overall it looks like you've got a good system in place!

Here's how I would do it. Get a domain name from GoDaddy.com for $9.99
Then go to www.Weebly.com
You can create a website for free and then have the domain name you purchased from GoDaddy direct visitors to the site you created. The Weebly site is fairly basic but it does allow you to collect names and direct traffic to your "real" website.
Hope this helps!

Welcome Sean!

Yes, with all the information available out there and especially on this site, it's hard to know where to start. Most folks say to choose a strategy (wholesaling, re-habs, buy and hold) and focus on that.
Don't hesitate to ask your questions. There a lot's of experienced investors here that are more than willing to give advice. Have fun!

Hi Brett,

The difference between homeowners insurance and landlord insurance is that homeowners covers personal contents of the home whereas landlord insurance just covers the structure and some interior items that are considered part of the house such as appliances. It doesn't cover furnishings and belongings because your tenant would have renters insurance which would cover their own possesions. Hope that helps.
It could also lower your insurance cost by just covering your purchase price instead of replacement value.
Good luck.

Here's the jist of the bill they're trying to pass in Illinois.

"Amends the Firearm Owners Identification Card Act. Provides that any person who owns a firearm in this State shall maintain a policy of liability insurance in the amount of at least $1,000,000 specifically covering any damages resulting from negligent or willful acts involving the use of such firearm while it is owned by such person. Provides that a person shall be deemed the owner of a firearm after the firearm is lost or stolen until such loss or theft is reported to the police department or sheriff of the jurisdiction in which the owner resides. Provides that the Department of State Police shall revoke and seize a Firearm Owner's Identification Card previously issued under this Act if the Department finds that the person to whom such card was issued possesses or acquires a firearm and does not submit evidence to the Department of State Police that he or she has been issued in his or her name a liability insurance policy in the amount of at least $1,000,000 specifically covering any damages resulting from negligent or willful acts involving the use of such firearm while it is owned by such person. Effective January 1, 2010."

Here's the link:
Bill Status of HB0687

Lock and load gentlemen!

I'm looking for a realtor in the Mobile Alabama area who is experienced in working with investors.

Being an out of state investor, the main thing I look for in a property manager is good communication!

How fast do they respond to my emails? Do they inform me when tenants move out or when major repairs are needed? Do they send photos of the condition that the tenant left the property? Do they send photos after the property is made rent ready? Are they timely on getting my payment to me? I have one property manager that doesn't send me the December rents until the first week of February.

Bottom line is- keep me in the loop! I shouldn't have to wait 2 months to find out that the property burnt to the ground!