All Forum Posts by: Rick Stevens

Possibly I overlooked in the thread but a key question is how they will keep your units at market value and keep retention high.  

Less turnover should = less cost but many times =s poor management of rent increases to keep pace with the market.  

Why wait until a tenant moves to consider an increase.  Sadly, many do.

2 cents

Rick

3 bd 2 bath SFH are awesome rentals. Long term tenants and great returns. I no longer entertain 1 and 2 bed SFH.

Triplex and quads are fantastic. 

A year and a half ago, I was kicking tires on getting into REI. I had an absolutely terrible first landlording experience with friends and family that left me so very frustrated (different post one day maybe). My wife and I were flipping our first house and learning how tough of a business that is for a newbie who "loves" the idea, but hasn't lived the model.

Time for a change:

Fast forward 18 months.  Full time job, full time family, full time pastor, and from 0-12 rental doors.  This year I added a 4 plex with a restaurant down stairs and 2 single families.  Cash flow from those 3 purchases $1750 a month.   Now looking to finish the year strong!  I plan to purchase at least two more small multi's to finish off the year.

Listen.  If you're kicking the tires, what are you waiting for?  Get in and drive friend!  I went from zero $ in passive income to nearly $3k a month in 18 months.  Small town super busy guy, playing it conservative, walked a lot of doors and made a lot of offers.  Found a mentor (coach) to help me along.  

I hope you raise your hand and say "Put me in Coach."   Stop listing reasons not to, and try it if you've done your research. 

Amy, 

If she pays within your margin / buffer of when the mortgage is due and it's not costing you money, why move her out?  That's extra $ in your pocket as long as she's a good tenant otherwise and it's not costing you anything.

Save those late fees to put a down payment on your next asset!

Cheers

Rick

@Andrew Boettcher

Learning OTJ is tough, but the lessons seem to be permanently learned. It was probably worth the time to learn the hard way.

Best wishes in the future

@John Moorhouse.

Stay in school bud. Grind it out. It’ll be worth it in the end.

@Marci Stein

I agree. I low ball. Then the deals I get are fantastic! But like Henry, I’m more aggressive to find off market deals due to no realtors taking a big bite.

I’ve had plenty of no responses from offers only to get a call back on a few months asking for the offer again. Then we land the great deal.

But each to their own. I don’t mind waiting and I know my strategy causes more of that.

Nick,

I'd completely disagree with anyone steering you away from a 3/1 under $50k in the midwest.  I don't know about home buyers, but renters love 3/1's.  They stay for over 5 years in my local market (SW Michigan) and you cash flow with no problem whatsoever.

With Leverage from a bank and 200k to spend, you could come out with 5-10 properties pending the rehab needed.  You will definitely need to have a partner / contractor to rehab for you if that's your target home.  But it's a great model.  That's what I do and we make great money.

Best wishes on your next steps.

@Roger Edington

Depending your strategy, there’s always to be made in RE. Maybe not a good time to be flipping though.

@William C.

In tiny SW Michigan I’d agree. Market turned about mid 2018.

No offense to real estate brokers, but investors around here need to get off their laurels and find deals off market. There are plenty out there. SF especially.