All Forum Posts by: Ross Kalmbach

Those companies do a lot of research before opening a location.  I don't think its a leading indicator - they just did their homework. Most (if not all) the data they use to come to their conclusion on location is publicly available. A lot of investors don't want to do the research themselves. They use the opening of such stores as an indicator when in fact - they could be considered late to the party.  Just make sure the company you are following isn't the next Blockbuster :) 

This might not be the most informative BP post but it's defiantly in the running for entertaining. 

Hello Nikki, 

I personally don't have much of a preference in timing.  Most of it, for me, comes down to when I have enough equity built up that I can use.  As long as I'm ok with the amount of risk I'm taking - I go ahead with the acquisition. 

Although living and investing in the south I have found I am not a fan of doing anything in the summer. It's too hot to be fooling around looking at properties (if you do it yourself that is).  Unless it's a good deal I tend to wait till the cooler months :) 

Happy hunting!

- Ross

I live in Plano now but invest in Louisiana where I'm from (Shreveport/Monroe).  Market is weird here - my advice is to take some time to get to know the areas and where it's growing.  I can't even afford to live near where I work so I rent.  I could buy a single family and rent to roommates but I've outgrown that stage in my life :)  I'm thinking of investing in the Terrell area but not as a house hack.  Commute would kill me. Good luck!

We use Zillow for most things - listing, application, and background/credit checks.  Between that and due diligence I haven't had a problem with tenants. 

https://www.zillow.com/marketing/rental-manager/tenant-screening/

However, we do use Cozy.co for payments.  

I had one tenant that was the same way - payday was on the 5th.  I allowed her to start payment on the 5th and I received the deposit around the 10th.  After two months of this - I noticed the payment was later and later.  She then said they changed her pay date to the 10th.  We had to frequently go to the location and pick up a money order usually not till around the 16th.  It kept getting later and later.  We never gave a notice to pay - therefore we allowed this to happen. Lucky she wasn't a bad tenant except for the payment timing and once the lease was up we terminated the month to month.  It is not your responsibility to plan financially for the tenant. 

Hi Katie and welcome back to the forums. 

1) Sorry I can't help there - I have my family help managing mine.

2) Depends on the condition of the property.  I purchase and rehab - new A/C for the most part, new fixtures, appliances (if they need replacing), floors, paint, etc.  I don't keep much on hand for repairs for that reason.  I do try to keep 2-3 mortgage payments on hand though just in case.  Also I have one house paid off so that always helps keep the cash flow if one or two are vacant. 

3) Depending on the area you don't really want to go lower than 100-150k for a house (turn-key).  You can still get good tenants for houses in that range - once you start going lower than 100k though you have to deal with less than the ideal tenants. 

I haven't dealt with higher priced properties - after about 180-200k the rental income does not scale with the mortgage payment or insurance well.  

4) Good luck!

- Ross Kalmbach

I had some questions that might be helpful around the most fun subject in real estate - Insurance.  What are the best practices for choosing the right coverage for your investment?  What advice would you give those starting out with only one - three single family properties? What about those buying their first multi-family?  How often do you shop for insurance or switch companies? When do you need to think about umbrella polices?  Any other helpful information that you think of on insurance that would be helpful to the community as well!

Thanks guys!

I see making a lot of money renting since the ‘70’s in this area (Dallas/Plano) but it is way overpriced for rentals at this time. You would probably be best looking elsewhere unless you are comfortable with little to no cash flow and with current market conditions probably little appreciation. Hell I can’t even afford to buy in this area as it doesn’t make sense.  You might be able to get some cash flow in a D area but not sure about anything better. Good luck! 

There are a lot of areas out there and it depends how far out of area you are willing to invest. I look for areas that aren't pure mainstream (I can't even afford to invest where I live - the numbers don't work at current prices). Google items like "top growing small cities in the US" or "fastest growing colleges". You could also research where businesses are most likely to expand and hope the market isn't already over-priced. For example there is a college near me in Ruston, LA that I believe is going to grow well over the next 5-10 years. A lot of the houses are old and need upgrading - and is one of a few target areas I'm looking at for next year. That and patience. Sometimes the area won't yield easy deals. I personally just buy older homes that need updating - fix up and rent out. I just use Zillow/MLS to locate then work with a realtor and place offers based on what I believe the properties are actually worth. Good luck!