All Forum Posts by: Derek W.

@eric black Yes, that was sarcasm. We need to keep it a secret that I recently bought a duplex for $30,000 that rents for $1,500 gross rent per month, and have been doing that for years.

In all my brilliance, I know that Bakersfield is closer to LA than Phoenix or Vegas. But there aren't any deals here in Bakersfield...

I take "know your market" to mean that you know the important facts of your target investing farm as well or better than any professional in the area. If someone asked me (just for example) what a 2 bedroom, 1 bathroom detached house on the south side of Arvin rented for, I'd know exactly what I'd expect to rent it for, and generally what my typical tenant base would be and how to advertise to attract this tenant. I'd know my expected vacancy rate, how easy or hard it would be to fill a vacancy. I also would know without having to check comps what this house should sell for and what I'd be willing to pay for it. For lower end units or smaller houses, I'd also know that walking distance to the carrot plant would rent instantly vs houses or apartments further away. For my mid grade units or houses I'd know what elementary school was most desirable and where the borders for the school district were. I would know where the A,B,C and D (and F) neighborhoods were, and how each level affected rent, tenant base and desirability.

If I didn't know these facts of the top of my head, I'd start my research to learn it. Like you suggested, know your multi unit cap rates, rents, vacancies, desirability in each area. A local investor friendly realtor, rental ads in craigslist, local REIA clubs, networking with local landlords would be where I started finding out my information.

I really like my studio units. There are specialty niches of tenants that you can really create a neat dynamic with and feel like I am really making a difference in people's lives. It's definitely a lower income niche. I joke that my studio units are the last stop before homeless. But I have found that there are sadly a seemingly endless supply of single seniors living on social security that can't afford much else. They make great tenants. I don't have any more turn over in my studios than I do in my single family rentals. I also have partnered with the local county programs for adult mentally handicapped tenants. Your check comes directly from the county if you have a service like this in your area. So don't assume that studio rental units always mean ghetto grade tenants.

Please don't mistake being hands on and running a tight ship with an inability to delegate to create plenty of free time. Though I would recommend to a new landlord to learn how to screen your own tenants, do your own evictions, collect rent, etc. before passing off the job to someone else. Or you can create your own management company after you have enough rentals and keep the control without sacrificing your time.

Patrick, is what Brian mentioned what you heard about? I've master leased single family homes and small apartments. Haven't done any larger units yet.

I think you haven't received a reply because it's a little confusing what you're asking. Are you asking for info on her, or on others who have done a master lease? I've done lease options, and I've done master leases, but have never heard of a master lease option. Lease option and master lease are two separate techniques.

Send me a friend request and we can pm off line.

I am a very hands on landlord with my rentals. I find that being a hands on manager and running a tight ship can really control my expenses. Since I don't mind being hands on, I find out of state very frustrating as I can't control my costs and vacancies nearly as well as I can locally. So if you are a yield whore like me, every savings counts. But this doesn't discount so many others who successfully invest out of state. It's just my personal preference.

Hey Matt. Welcome. I own houses in Canyon Lake. Hit me up. I know lots of investors that can help you in the area.