All Forum Posts by: Austin Davis

Hello Cedar Rapidians!

Just seeing a post about this new sub-forum feature on the website and thought it might be a good idea to help organize local discussions such as local laws or recommendations for help.

So, first discussion topic....What is the best or worst part of town to invest in?

Great to hear!  It's and incredible site with amazing people on it.  I tell anybody thinking about investing to listen to the podcasts and to sign up for an account.  Congrats to all the people at BP and the members that made this happen!

@J Scott

Before reading the books, I didn't feel like flipping could be my thing for a long time, since I had no knowledge of how much things cost or the construction/rehab business at all. Now that I have read both books, I realize that I have had the tools I needed all along and I now have the confidence to tackle my first flip, when it comes.  The books don't just help flippers, because I have definitely picked up some valuable tips that I use in my renal business too, like cheap things to do that really make your property look good.

I have referenced the books and given advice from each of them many times and can't wait to put them to use for real.

Welcome, @Carrie Oelrich!

It is always good to see other local investors.  See you around the site!

Thanks, @Steve Vaughan.  I like the idea of just leaving out the details.

@Rob Brautigam-I agree that this is an interesting topic and it might be worth bringing to a separate post to get more feedback on it.  We will see how much feedback we get.

So far the pro's that I have heard that telling them you are the owner gets you more respect from the tenants and that you can build better relationships with tenants to have them stay longer.  I have also heard that you can "put the blame" onto your property managers policies on how things are run if you come into an issue.  Last, if they find out that you are the owner, when you have told them you are the manager, they may feel lied to and get upset.

On the other side, I have heard there are advantages of always having separation between the owner and the tenants.  Always being able to blame "the owner" for things that come up or decisions that tenants don't like has always been listed as the biggest advantage.  I have also heard that some tenants might want to come right to you instead of your property manager if issues come up.  Last and biggest thing that I have heard is that if a tenant knows who you are, they can sue you a lot easier if they are upset, where they wouldn't go through the effort of tracking you down if they don't know you.

Any other feedback on this topic would be much appreciated.

Great Idea, @Steve Vaughan.  I will definitely do that next time I see a tenant outside.  Would you recommend introducing yourself to the tenant as the owner of neighboring properties or a property manager?  Just wondering who a tenant would more likely be willing to talk to.  Also, if I did purchase the property they would know who I am, and I have heard some mixed reviews on having your tenants know who you are, as the owner.  Any thoughts?

Hello All,

I just purchased three 4-plexes on the same block a couple months ago and things are going pretty well so far.  However, there is one run down 4-plex that is right next to two of my properties that seems to be keeping tenants from wanting to live on this street. 

It has always been a plan of mine to try to purchase this 4-plex as well and since I am not getting the tenant interest that I would prefer, I think I would like to approach the owner sooner than later.  I looked up an address on the assessors site for the owner, but that is all the info I have.

Questions:

1. How would you approach the owner of this ugly 4-plex?  Send a letter?  Wait for a For Rent sign to go up in the yard(maybe more motivated at this point)?  Ask around to get the owners phone # and call him/her?  Maybe a combination of the above?

2. Once you got in touch with the owner, how would you approach purchasing the ugly 4-plex without upsetting him?  Just introduce yourself as a new owner in the neighborhood and not bring up the purchase yet or just cut right to the chase and tell them that you are interested in purchasing it?

3.  I would like to keep the small reserve fund that I have, so I would like to pursue some creative financing methods such as lease option, seller financing etc.  However, I am assuming that since the place is rundown, the seller would be more interested in cash.  Would you have this same assumption?

This is a lengthy post, so don't feel obligated to respond to all of the questions.  Have a good day!

Welcome to the site, @Carrie La Seur.  I also lived in Iowa City for quite a few years and I think I know the sketchy neighborhood you are talking about.  There are also quite a few of those old homes that need rehabbed around the college campus.  It is definitely a service that you and your husband did to flip the houses in the neighborhood.

See you around the site!

Welcome Craig!

Looks like we have similar starting strategies.  I just purchased some 4-plexus in town.  I will be asking many questions in the forums in the near future, so you may be interested in some of the feedback that I get.  Good luck!

Looks great, Rebecca!  Thanks for sharing.