All Forum Posts by: Trent Epley

Arta - It sounds like you've had bad experiences both with tenants and property management. I'm not sure how long you've been at it but I would push you to not throw in the towel just yet. If I were in your shoes, I'd be focused on the things you can change. Tenant screening is such a vital component in having a positive experience so I'd think through your process and how you can improve selection. Then I'd look for recommendations on quality PM's in your area and do multiple reference checks to confirm. 

I'm invested in the market as well and would recommend continuing with both as a way to diversify. And you're right that it's much more passive which is appealing. However, it doesn't have as much upside which is probably why you pursued RE to begin with. Think about the long game, make a couple changes, and once you get quality tenants and a PM in place, think about your next deal. The market will inevitably correct, and when it does, go make a stronger ROI than index funds will ever bring in. :-)

Hey Mike - If I were in your shoes, I'd spend the next 6-12 months doing a lot of reading and networking. Just spending 30 minutes on BP/YouTube every day listening to podcasts, reading on the forums, and reading books will be huge. In 12 months, you'll have an extra 15k to go with your current 15k for a 30k nest egg. If you have some margin with time, I'd think about ways to increase the income as well, which may get you to a 40k nest egg. That would allow you to put 20% down on an investment property and still have some cushion. By that point, if you stay intentional with your own personal growth, you'll understand how to analyze deals and to ensure your property as good cash flow and appreciation upside. Hopefully, you'll be able to get a better deal in 2021 anyway. Think big picture and down run head first into something you're not comfortable with yet. 

Sarah - I hear why you are asking the question. I agree that it's a pass, and the main factor for me is that they both have 800+. That says a lot about their fiscal responsibility (and their unwillingness to see it drop). I also think unemployment as a means of income adds value, at least in the short-term. The one caveat is that I would take the opportunity to be transparent with these two that this is a concern of yours and see what they have to say. I'm not sure about the legality in how to approach it but they just may tell you they have a substantial emergency fund in place or that the husband would be willing to do work outside of his comfort zone to make ends meet. 

Hey Mark - I'm in the south burbs as well. Seems like we're in a similar boat as I just purchased my first rental. Have you narrowed down a strategy yet? And when are you looking to purchase your first property?

Hey Ivan, 

Where are you at in Chicago? And what are the numbers on the property? What type of advice are you looking for? 

My perspective is limited, but my gut is to stay away. I'm new to the world of land lording but have hired dozens of people in my career. And this comes across as a pretty significant flag. When the flag shows up in the "hiring" process, 95% of the time there are issues down the road. Next to getting the right deal, I believe that the most important decision is getting the right tenant. Take your time. Even if it's vacant an extra month, the bullet you dodge is worth it all the way.

We're in the Southwest Suburbs (Orland/Tinley area). It's my first rental so I didn't want any major rehabs, but I am putting in a dishwasher as part of getting "rent ready". Floors are laminate so there's always room in the future to put in hardwood but the house is clean and any updates would be more on the aesthetic side. At this point though, I just want to get a tenant in and start landlording and learning the ropes.

@Ryan Xu Appreciate it! What’s the difference between lease option and rent to own. I realize I’m using them interchangeably and shouldn’t be.

I figured it's a small price to pay ($320) relative to the overall skin in the game so figured I'd give it a shot for a year and see if it was worth renewing. I don't think I've peeled back all the benefits yet but the insights tool has been cool. I saw that Joliet was top 5 for rentals so it looks like you're already a step ahead!