All Forum Posts by: Stephen J Davis

Sorry, but stop reading. Do it!..LOL. Join the National Apartment Association and take their courses on owning and managing apartments. If you want a mentor to walk you through the process, I can do that. 

No. In fact, if you pick up a hammer or paint brush you are doing it wrong.

Are you preparing to syndicate a larger apartment or are you doing it by yourself?

Either way, make sure you take a course on apartment investing. It is nothing like single-family. 4 units or less. 

Then join a local real estate investor group to raise capital and keep your education current.

Be aware that the only people that you can not evict are people that lost their job directly as a result of covid and can prove it. This person should be evicted ASAP for non-payment of rent. Let him borrow the money from relatives until the settlement but you need to get paid.

I have students in that market that are doing very well. Remember to build your buyers list first by joining a local real estate investor group. Meetups are also a great source.

I don't like condos or townhomes as a rule. The HOA fees usually kill your cash flow unless you get a great deal.

Take out 15% for vacancy or more due to the fact that condo's lease slower than single-family.

Recommendation: Skip the condos and go buy a small apartment complex where you control the entire project.

Check out https://nationalreia.org for local clubs. For meetups just search from their website.

I would do it after the purchase and not rely on the seller. I would even give them the option to move out early without penalty. You could also give one of them the option to stay at the higher rent.

Question: How does a month to month lease help in these "uncertain times?" I don't get that. Now your tenant can leave at any time and you are back out hustling for a new tenant. All of my properties are still on one year leases. Single-family and apartments.

I have done about 4000 units with the value play business model. I love what you are thinking about doing. My concern is your educational level. Have you taken a course on apartment investing? Have you taken the National Apartment Association classes? If not, please be aware you are competing against people who have. Your property manager needs to take the NAA classes as well. My first apartment complex, 10 units, ate me alive. I thought that since I had run over 100 single-family houses I could run an apartment. Wrong. They are completely different. While I made a lot of money on that 10 unit, if I had known what I was doing, I would have made a lot more. Get educated before you make a huge investment like this.