Single family investors know that keeping up with rental properties and tenants can be a hassle. In addition to dealing with property management, investors must also manage tenants. While a single family rental is a great way for many to earn cashflow, it can be tough to stay organized.
Our guest this week, Gregory Radford knows a thing or two about organization. A decorated military veteran, Greg became a de facto single family rental investor while still serving in the Army. After renting out his home he had purchased using his V.A. loan, he had his Eureka moment. He saw the investment potential of the V.A. loan and leveraged that into becoming a successful single family investor.
Combining the organizational skills and discipline he learned in the Army with his loquacious attitude, Greg created a strategy for earning hassle-free cashflow through single family rental investments. Starting Radford Homes with his wife, Greg is an active single family rental investor in Polk County.
Federal loan program for military vets to put money down on a home
V.A. loans can be reused as many times as the loan limit allows
Homes must be inhabited for 12 months
Loan limits vary by state/county
Polk County: $424k
5 Tips for Hassle-Free Cashflow
Strategic, intentional marketing
Custom Rental Applications
Send pre-scripted correspondence to potential tenants with explicit application instructions.
Tenants who fail to follow instructions are disregarded
Asking ope-ended questions during tenant interviews
Find out about prior residences
Check social media
Open House for Rentals
Controlled open houses
Open houses 2x/mo. cuts down on scheduling showings and creates urgency among potential tenants
Requiring proof of bank account assures tenant’s financial credibility
All payments sent through electronic funds transfer or cashier’s check
Gary Keller – “Hold”
single family rental investing
Gary Raulston – “Real Estate Principals: A Value Approach”
The sob-stories; the hard-luck-tales; the down-and-out pleas. There are many reasons tenants might ply a landlord for a special leniency or exemption. Whether these are legitimate reasons or or not, landlords and property managers can end up assuming a lot of extra stress on a property by allowing tenants to take advantage of a situation through emotion. Sometimes, the hardest thing for investors who manage their own properties to do is tell their tenant “no”. It is easy to put yourself in someone else’s shoes, but at what point can empathy hurt your investment? Real estate investors need to know how to keep tenant turmoil at arm’s length when it comes to the viability of an investment.
Adrian Smude may know better than any the importance of managing interaction with tenants. As an investor in single family residential properties in and around Plant City, FL, Adrian has experienced the short-comings of allowing tenants unchecked leniency. Adrian’s start in single family residential investing stems from an unpleasant tenant/landlord experience: eviction. After being evicted from a rental house in college, Adrian ended up purchasing his own single family property and converted into a multi-tenant rental. Wary of the poor experience he had as a tenant, Adrian opted towards a more empathetic approach to landlording. Eventually, he found his tenants abusing their privilege. Adrian had to find a way to separate himself from thinking like a tenant and more as a landlord. Adrian adopted a system that put distance between himself and his tenants while avoiding the hard-line approach. Join us for the first episode of “Landlord Tales” as we discuss holding rental properties in a land trust.
Property placed in name of land trust. Property owners can designate themselves as trustee, separate from beneficiary
Managing property and tenants becomes easier by separating function as landlord from property owner
Adrian is actively in the market for single family residential properties and mobile homes of up to $120k in areas around Hillsborough County and Polk County, including Brandon, Plant City, Lakeland and Winter Haven. If you believe you may have a potential investment opportunity, contact Adrian at (813) 720-7874.
For those new to investment real estate markets, pulling the trigger on a new potential property can be difficult. It is important to strategize and form a plan for your investments. A thorough plan will provide you with the confidence and knowledge to execute an investment property acquisition. Discovering untapped or overlooked real estate markets can also provide opportunity for investments.
Gavin Welch is real estate agent based out of Lakeland, FL. He has years of experience in finding investment properties as well as managing several of his own. Gavin discusses five helpful tips for scouting these off-market properties and how you can build a successful investment base in these properties.
Gavin can be reached at:
In addition to his own podcast The Real Estate Loop, you can also follow him on Twitter and Facebook.
Obtain evictions list from County Clerk
Cross-reference names with Property Appraisers
Notify landlord/owner of property interest with hand-written note in mail
Scout absentee owners
Absentee owner lists may be purchased or compiled manually
Often property is inherited or owner holds little interest
Build a strong referral base
Word-of-mouth can be strongest marketing tool
Networking, social circles, and family can all be sources of referral
Seek abandoned or neglected properties
Burned-out or mold-ridden properties may offer high returns
Ask public service workers (garbagemen, mail person) or neighbors for information on properties
Pull code violations from city code enforcement
Owner may be eager to sell to cut losses or unable to continue costs of maintenance
Code Enforcement Dept. may offer leniency with some violations if issues addressed