All Forum Posts by: Tyson R.

I have no knowledge about office warehouses, but since no one seems to be responding you'll have to settle for me. 

I'm of the opinion that you should do what you know. It has been said that you should seek out your 'unfair advantage' and it sounds like Residential might be yours. However, if you see this as an untapped niche where you can achieve greater returns than residential, then find a mentor who's done it and go for it. 

Also keep in mind vacancy. Vacancy in a residential property should never last more than a year. I've seen and heard of commercial properties staying vacant for multiple years.

@Wes Carmichael that's great that you're looking to make the leap! But your question should really be covered as part of your business plan before you place a time frame on yourself. Check out the UBG chapter 4 or even SBA.gov on writing a business plan.

@Nikko Kelaidis is right. Defining how you are investing is key in having people give advice. Defining your goals, personal expertise, level of involvement, personal resources, and your ideal "deal" will all help the BP community to help you out better.

I would keep a 60 day commitment, like you are doing. But I wouldn't restrict yourself to having something under contract. A better goal could be 1000 mailers, looking at 100 properties, or even an offer in the next 60 days. The worst thing you could do is force yourself to be under contract on a property that will loose you money just to keep your goal.

Now assuming that you're looking for a buy and hold property, I would look for properties where you already have boots on the ground. It doesn't have to be your boots, but having someone you can trust is very important. I'm a big fan of leverage and so the properties must be over $50,000 (Banks don't like to lend on anything smaller.) I seek for a positive population growth and more than one single local industry. Those are just a few of the things I look for, but boots on the ground is a must.

@Greg Pierce you have to create value. The way you describe yourself and your situation you sound like a serious risk. It doesn't sound like you have marketable skills, experience, money, time, or even the education required to attract financing. What makes you great? Why would someone want to invest in you? If you are lacking skills, experience, money, or education but have time then approach a local apartment investor and offer to help them in exchange for an education. Or bird dog for a whole seller to make some money for a down payment. Even listening to all the podcasts will help you be more marketable.

Turnkey can work; however, it completely depends on the Turnkey operator. Some are putting lipstick on a pig, and some are genuinely trying to provide an excellent product. With Turnkey properties you have to do your due diligence twice. Once for the property, and the second for the Turnkey company. (and a third for property management) I would seek referrals for any Turnkey company and compare them to their competitors. Figure out what you want from a Turnkey and interview them. Also be aware that Turnkey properties will generally not have as great of returns but it is the price that is paid for having someone else do the work.

Here is a member blog that is pretty good:
https://www.biggerpockets.com/blogs/7561/51604-abo...

Where is your property? Different states have different laws as far as how long an eviction process takes. You should serve the 3-day notice to quit immediately, if legally able. If the tenant refuses to communicate then there isn't anything else you can do short of hiding out all day in a ghillie suit trying to sneak attack.

That being said you could include a way in the 3-day notice to quit that provides a solution to the problem, or include a statement that indicates you wish to resolve this without an eviction. But if the tenant refuses to talk than they have forced your hand.

Also, I'm not a lawyer!

To keep your options open check the forums on ideas around the HOA restriction to rent out the cabin. I would suggest having a lawyer take a peek at the bylaws of the HOA and see if it is even legal. Also taking a bit of time and speaking to the board might pay off. If they have a reasonable specific issue offer to put it in the lease and make any tenant also agree to obey the bylaws of the HOA. The BP answer is to avoid HOA's at all costs but board members can sometimes be reasonable and with a little bit of care could be convinced to allow an exemption. You might get lucky.

So I'm considering a multi unit property that could be well within the 1% rule for the Salt Lake City area. The only catch is that the current tenant is Section 8. I'm pretty sure that the advertised rent with section 8 is about 200 dollars below fair market value. How easy/difficult would it be to raise the rents to the appropriate amount when renewing the contract? What all is involved with Section 8? Am I crazy to be considering my first deal to be Section 8? Thoughts? 

(The property as is is below its market value in rents, but I would still be updating the properties to rationalize an increase in rent.)

@Mindy Jensen Thanks for the comment, I hadn't considered that he might have a poor method for renter criteria. I was originally interested in following my friends lead as far as renter criteria, learning from him as I go. But to think that they would be my responsibility makes me think I would probably want to vet them more rather than less. 

@William Hochstedler Thanks for that link. So number 3 of the exception says:

So I'm not very familiar with legal jargon, but if I understand this correctly I could act as a property manager if my friend hired me as an employee, but I could only manage for him. Correct? Would I still be able to manage my own properties when I get them? Also, would this mean the Liability would still rest on the owner/employer, but I would be acting in his name (or his companies name)?

Excuse the many questions, I'm just excited. It just seems like a perfect way to get a mentor, and get payed in the process.

@Cody Steck I've looked into wholesalers and have been pretty disappointed. Unfortunately all the wholesalers buyers lists I have gotten onto seem to focus on expensive fix and flips. I haven't seen a single multifamily, and the majority of deal have been on the MLS anyway. Whoever the Legit wholesalers are I haven't found them. In fact, after looking at there emails for months without anything i'm remotely interested in I've stopped opening their emails all together.

@Esaul Viramontes not to be rude but how are you charging $ 950 for a two bedroom basement way out near the west mountains? That seems crazy expensive to me. I don't know that area well, but a quick rentometer dot com  check puts 2 bedroom average in that area around 720. 

@Jeffrey S. BreglioI've considered marketing for homes but I guess I've always just assumed thats manly for wholesalers. Have you had much experience and success with mailers to pick up just one single property?