All Forum Posts by: Taylor Johnson

Turner has some experience. When experience happens then investment partners tend to feel better about investing. When it's a newbie with little to no money, experience, etc. then passive investors or types of partners can get nervous making an investment in a unknown commodity.

How do you overcome that? Most newer investors only take a small slice and give most of it to the passive investor or a partner bringing the money. As the sponsor gains experience then better splits follow and cheaper capital starts to flow in and more relationships are forged over time.

If you have a great deal then don't reinvent the wheel. Go to someone like Turner and see if they will bring in the money with their connections and you take a small slice to get going. If anything you might learn why a perceived deal might  NOT be a deal and then what to try and find  that is.

@Taylor Johnson I am actually starting a direct mail campaign with @Jerry Puckett next month as soon as my baby is born.  I am excited to try it out. I am planning 1,000 a month for 6 months hitting the same houses each time. I have chosen 3 main zip codes to focus on in the salt lake valley. He comes up with the best marketing material for your specific needs. I have heard great things and will let you know how it goes!!

@Taylor Johnson I think you have to be patient and get a really great deal. I tend to go for low price per sq ft and end up doing some work before they are rental ready. I watch the mls pretty close. I go through every single new listing in the salt lake valley up to $300,000 each day.  I only see one every 2-3 months that is worthy.  

@Taylor Johnson That particular property is in West Valley right near salt lake community college. It has a mother in law as well. So the upstairs is rented by room and the basement to a family.  We cash flow about $1,400 on it after paying ourselves property management and all expenses. If we ever wanted to outsource property management and rent the whole property it would drop to about $800 which would still work for us. 

We have also found that often when you have 2 rooms open family are interested. Such as a mother and adult child, cousins, adult siblings.  We don’t allow couples however 2 of our rooms are rented to a married couple. They use one as their bedroom and the other as an office. My favorite place to find renters by room is the local Facebook for rent pages. Second would be KSL. 

I personally have one of my properties  I rent out rooms as well and it has been great. However as @Zack Adams said above I would make sure it would cash flow if you rented the whole unit as well. I am assuming you are intending to self manage. However in the future if you ever decided to get a property manager they typically won’t work with those types of lease agreements and it may limit you. 

I'm all for squeezing out extra profit by renting a place by the bedroom, or renting a bedroom on Airbnb ... but I always make sure that it'll make profit by just renting the place out traditionally to a single family, so that I'll have something to fall back on if the other methods fail. 

I bought a condo once in downtown Salt Lake and then rented it on Airbnb, made a couple months of killer profit, then had to stop the Airbnb once the HOA started throwing a fit. Luckily, it still is profitable rented out to a single tenant ... but this would have been a very sad story if the unit couldn't bring in enough traditional rent to cover the expenses

I just wanted to jump in here. Its great if you can do this that's seems a steep price for the purchase price of the townhome in Lehi unless its at Ivory Ridge. Many HOA and their CC&R's will not allow you to rent a townhouse out like this and if they find out will serve you a notice. So always make sure its ok. With 5 others in the home I imagine parking can become an issue and if you have six cars around your Townhome neighbors will start to complain and if that happens they will check into this and if not approved could cause you some issues. A unit like this rented to one occupant would fetch 1700-2000 a month in the current market.

Taylor congrats on the property. Are you thinking to keep purchasing multi-families?