Episode 342

6 years 6 properties $17k with Ryan Chaw

Ryan Chaw primarily invests in California where investing may prove difficult to to high cost and low returns. However, Ryan has been creative in selecting specific locations and catering to a specific renter. This strategy has earned him a personal real estate portfolio earning over $10,000 per month.

We chat about:

  • How I scaled my portfolio so quickly (use of a HELOC and reinvesting my cash flow on my properties, working two jobs, making a deal with my father to borrow some of his money for renovations).
  • The Biggest Mistakes in Real Estate that cost me over $30K.
  • Tips for Marketing and Self-Managing Your Rentals With Less Than 1 hour a week

Want to make contact with Ryan? Head over to NewbieRealEstateInvesting.com/Guide

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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

Transcript
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Welcome to the REI Mastermind network, where host Jack has gathers amazing stories from leaders in real estate investing.

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In each episode, our guests will tell you what they're doing that works what they've tried that failed, and best of all, you'll learn actionable steps to take your real estate investing.

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To the next level now, here's Jack with another value packed episode.

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We have a returning guest on Ryan Chhabria.

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Really appreciate your time, Ryan.

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And just so that everybody can follow along, I'm going to send everybody to your website again.

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Newbierealestateinvesting.com/guide and take advantage of this people because Ryan is offering.

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Something special there so head over to again. Newbie real estate investing.com/guide and we're going to kind of dive into some of what he's offering through that online form there. But really appreciate your time and welcome back.

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Hey, thanks for welcoming the iconic podcast, Jack.

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I'm happy to be on.

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So, since the last time we talked and you can kind of go back to Episode 158 and I'm quickly closing in on episode 300 when we're recording this Ryan, so it's been. It's been a while, so since then you've picked up a couple more rental properties.

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Right?

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Yeah, so for those who don't know my story.

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I basically was inspired to get into real estate investing from my grandpa who bought a couple properties in the San Francisco Bay area, and this was back in the 50s when they are dirt cheap.

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And of course, we all know the real estate market went up like crazy.

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Rents went up and he was able to.

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Have the rental income basically cover all his expenses and live a life of financial independence.

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And what I got started as soon as possible after I graduated as a pharmacist.

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One thing that happened during my hospital or like my first hospital job is I talked to one of the older pharmacists he was around.

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I think 59 or so, and I asked him, hey, what do you like about being a pharmacist and he told me to tell you the true frying.

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I'm actually I would have quit a long time ago if I could have. I'm mainly here to collect the paycheck and I realized then that you know I didn't want to follow that traditional path of go to college, get a job, work 9:00 to 5:00 until you're 65 and then retire. I wanted to create my own path to basically have to or don't have.

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To go to work if I don't want to, if I go to work, I'm choosing to go to work right?

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I want to be able to live a life where I can choose to basically a life of flexibility where I can choose to spend more time with family, choose more time to travel the world, explore different hobbies of mine, or go into mentorship or education, right?

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Sure, well, you know you're a perfect example of what we were going to tend to.

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Dive into this a little bit today.

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'cause I've always we run into a lot of people, probably you as well that they're frankly what I would classify as house rich and rental property poor.

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So how did you?

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How did you level?

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Leverage your HELOC to like?

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Do some of your real estate investing?

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Yeah, so currently I have six properties.

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I basically bought one property per year and what I do is I invest in local college towns, and I rent out by the bedrooms.

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So, I buy usually houses with pretty large square footage and add as many extra bedrooms as I can because every extra bedroom, I can add is an additional 600 to $800.

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Rental in.

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Come and what I did was at first, I put like a 20% down payment on my first property and then that property really went up like crazy.

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It went up 60,000. I think the first year and then five years later four or five years later, it's up about $168,000, so I was able to take out.

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A HELOC on that property, or it's called a home equity line of credit.

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It's basically I took out $100,000 as kind of like a credit card. It's a revolving line of credit where the interest rate is a low rate.

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It's variable, but it's a low rate around 4:00 or 5% for me when I originally took it out and I use like $50,000 of that 100,000 to put towards the 4th property down payment.

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Now I use 50,000 to put towards the 5th property down payment and that allowed me to scale so much more quickly.

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I also reinvested the cash flow that I was making on the original light, like my first, second and third.

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Property, uh, because uh, I rent out by the room, right?

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So that allows me to double my typical rental income.

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e that usually rents out for $:

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Rental income because I basically rent by that bedroom right college student.

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Right, yeah, you know this.

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This was fascinating at the time that you've been able to pull this off because.

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A lot of real estate investors that are in California actually invest out of state because they can't seem to get the numbers to work.

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But you've really found this kind of magic formula that you've been able to get this to work for you.

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Plus, you're you mentioned before we hit record taking advantage of some of those really low interest rates that are going on right now, unlocking some of that.

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Right?

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Oh yeah, definitely. Interest rates are like below 3%, especially for owner occupied properties. So, I actually am house hacking a house in Sacramento, CA.

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I created made a five-bedroom house, rented out the four other bedrooms to tenants and you know I'm taking advantage of an interest rate of 2.75% right now and.

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Actually, right now is the best time to buy because the Fed has said they will likely be raising the interest rates next year to combat inflation.

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So, if you know you were thinking of getting into real estate investing, now is actually definitely one of the best times to lock in a low.

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Great to make sure your mortgage payments are pretty low.

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Yeah, this this is the definitely the time to take advantage of it, especially if you do have some of the funds that are available, especially locked in your personal residence.

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How did you find that that process?

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To be then?

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When it came to your HELOC, did you when?

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When you were talking and negotiating with the bank, was that fairly easy value to unlock?

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Yeah, so I always recommend checking out a couple different lenders to see what they can offer you.

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My HELOC actually did a promo rate.

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They did like 2% for the first year or so for your owner-occupied property. So, you want to explore the different options out there. There's some key lock banks that will basically cap.

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Your rate as well. So even though it's a variable rate, they'll cap it at let's say 7% or 8% and won't go past that now.

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Matter what the other thing about the HELOC that's really cool is that you don't have to take it out unless you need it, so you can keep it at $0.00 and you don't have to pay any fees or anything whatsoever on the key.

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Lock it until you actually need it to put a down payment on a house, but here's the thing. If you are getting like a HELOC and it's a 5%.

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Interest rates and you're buying a house that makes a 12% or 15 or 20% cash on cash return for your initial key lock investment while you're borrowing at a 5% interest rate.

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And then you're getting a 12% return, so you're making that 7% return spread that you know is between the HELOC.

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Interest rate and the cash on cash return you're making on that property.

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Plus, you're getting appreciation.

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You're getting tax, write offs, depreciation.

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You're also getting grant in rental income increases and equity pay down, so if you can take out a HELOC and you have some equity on your property, I highly recommend you do it because it just makes sense.

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Right, even though you're using some depth to borrow on that, you're making such a high return that it just makes sense to.

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Make that money.

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Or sorry to make you to take it out.

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Well, you mentioned that early on in this conversation you mentioned you've been you've acquired like one property every year, but you mentioned in this scenario you actually acquired 2 when you got that HELOC on that one rental property.

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Have you found that you're at the point now where it's going to start to accelerate like that?

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Yeah, so at this point I kind of have two choices.

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This is I could.

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It's kind of like the choice that every real estate investor has.

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I could either pay off some of my properties and then that will boost my cash flow and I could just live off of that.

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I could do that by age of 31. Basically, what I do is I could sell my first property. It would pay off three of my other properties and I'll be making it.

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Cash flow of $:

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en I basically live off that $:

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I have about 500,000 in equity. All my houses right now so I could take out a $500,000 HELOC. Sorry I have more than 500. I think I have about one point something million.

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And equity on the properties, but that would allow me to actually take out a HELOC of about 500,600 thousand, and so I could use that to scale further and excel I, I mean, with a $500,000 HELOC you could probably I could probably perch.

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This, like four or five properties. Right now, I'm kind of playing with the idea of going that way or the other way, but right now I have six properties that's making $17,510 per month in rental income.

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Sure, that's the gross right now.

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And that's so gross.

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Sure, yeah, well that's.

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That's a great.

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You know you're defining like the perfect scenario.

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And then you're doing it in a in a relatively difficult market.

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We talked about let's back up for a moment to chat a little bit about this.

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You know if people wanted to go into more detail, look up.

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Episode #158 with.

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And where we kind of covered this in more detail, but.

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Kind of break things down a little bit for us.

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You know how did you come around again to this concept of renting out per room instead of the traditional rental?

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Yeah, so I actually saw my friend doing that in college.

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He was a house hacking.

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He basically lived in the room.

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This House was very close to campus and then he rented out the other bedrooms and the other bedrooms basically paid down his mortgage and he also gained appreciation on the House etc.

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So, I figured hey you know if he could do it why can't I do it?

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Right and so.

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So, I basically started out with a single-family home, $262,000 near my pharmacy school and I actually had a lot of things that came up on that house. I actually lost over $30,000, so there's definitely a room for improvement. When I started out.

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But what happened is I basically held onto that house. It went up 168,000.

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I put in a fourth bedroom, and I was able to make a cash flow of about $600.

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Or month and I basically just improved on that model and perfected it throughout the years.

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Basically, getting my marketing system in place.

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My management systems in place, like for marketing, I have something called the prime system that I use to get high quality tenants and so I didn't have to worry about evicting tenants because.

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It's usually the parents paying the rent, right?

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So, you don't have to worry about evictions most times, and if you choose the right tenants, you don't have to worry about having the headaches of having to manage the tenants.

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So let let's talk a little bit about your $30,000 mistake. Like what happened there that caused.

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Yeah, so the very first property I bought was 100-year-old property and for those out there getting started I would recommend staying away from houses that cost started that are older than 100 years old because it just there tends to be a lot of things that kind of go wrong with it. Things are older right? So, they tend to break down. So, my first house I had.

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Two issues, two big issues.

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The one issue was that the House didn't have a very good AC system, so during the summer I had tenants that were complaining.

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That's like 90 degrees in the house and they can't sleep right.

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lly I got a phone call around:

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I still remember it was on the weekend and he told me Hey, there's sewage coming out of the kitchen sink it spilled out over the kitchen floor.

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You know it's gross.

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It smells horrible, and so I had to get somebody out there to clean it up.

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ole sewage line and that cost:

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Dollars and an AC system. I had to replace the whole AC system. That one costs about 15,000 somewhere between 15 and $18,000.

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ather at the time I only had $:

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So, what I asked, or with the deal that I created was he lent me the $23,000 to create a bedroom and extra bedroom at the house.

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To you know, get the new AC system to prepare the sewage line and exchange. He gets $550 per month on that bedroom that he created for the rest of his life.

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d after that he makes about a:

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So, for him, you know it's a win situation, right?

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He invested the money; he gets a return for the rest of his life.

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And for me I was able to make the repairs and have that extra bedroom so.

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Do you still have that?

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US today.

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I do, yes, I do still have it today, but I am again like I said I was playing.

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I'm playing with the idea of maybe selling that house because it went so it went up in price like crazy.

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But as real estate kind of does in California, the appreciation of California is really high.

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Even though your cash flow is a little bit lower, your appreciation is crazy.

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So, I I'm.

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Playing with the idea of selling that paying off the three of my rental properties, three out of the six and then basically retiring.

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And then living a life, financial freedom, maybe traveling the world for a bit, uh, or just getting into.

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I teach students how they do exactly what I do in student housing, so maybe exploring, expanding that business.

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Or you know, picking up a hobby.

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Sure, well, you know you.

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You mentioned some tips.

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You know this this concept that you have regarding student health.

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Closing now you mentioned some tips around marketing.

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How have you learned?

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What are your tactics there or a?

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Few your tactics.

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Yeah, so I use something called the prime system, which is the system I created.

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The P stands for placement of advertising, so wherever your target tenant is, you want to place your ads where that target tenant.

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He's out, so it's kind of like if you are placing your ads where they don't hang out.

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It's like fishing in an empty pond, which you don't want to do.

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So, for me, I kind of look at Facebook groups Craigslist, but I basically figure out where do the college tenants hang out?

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Maybe it's campus bulletin boards and I place my ads there.

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The second thing is which is reviewing social media, so I'll once they contact me either through Facebook or email.

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I'll kind of look through their social media.

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I'll go through their Facebook and look for things like smoking, alcohol, drug.

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Bugs, maybe raves.

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See what type of tenant they are like.

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Are they a party type who you know smokes or does drugs and all of that?

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Or they somebody who's more professional?

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Maybe they're going into a professional school like pharmacy, dentistry, medical school, or nursing, right?

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So those are going to be the more high-quality type tenants.

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The I stand for identifying the type of tenant they are.

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So, are they somebody who gets angry easily?

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Are they somebody who's constantly looking for a cheaper deal?

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Are they asking for things they shouldn't be asking for or they are very picky tenant that.

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Kind of thing and then M stands for measuring responsiveness.

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So, I find that the more responsive a tenant is, the more responsible they are.

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So, a tenant who gets back to me right away, like when I ask, hey, you know, your rent is late, can you get me the rent as soon as possible?

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I want that type of tenant over somebody who's going to wait.

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Three weeks to respond.

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Right, so I look for those who are responsible, responsive, professional, that type of thing and then E stands for ensuring proof of income.

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So, though it's the students staying at the house, it's actually the parents who usually are paying the income.

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So are paying the rent.

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So, I kind of look at the last few two months bank statements.

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And credit score the pair.

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Either that or pay stubs, or for students.

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Sometimes they take out student loans or they have financial aid and I basically ensure that they can afford the rents so that we're not dealing with unpaid rent, right?

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And having to go down the eviction pathway, which I've never had to deal with, especially in.

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The student housing.

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You're probably gonna answer this second next question based on regarding managing these rentals. But before we get go there, I want to remind everybody again. Newbie real estate investing.com/guide

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I'd for Ryan's information and and to get some of this information that Ryan is chatting and talking about here today, so managing these properties, how do you ensure that you have? You know half a dozen of these college kids are sharing a living space that they're going?

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To get along.

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Yeah, that's a great question, and here's the thing.

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You might have tenant conflict come up, but as long as you have a system.

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And protocol in place for.

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If this happens, I will do X, or you know this is what's gonna happen then everything kind of works itself out.

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So, it's really about having the systems and processes in place.

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For example, if I have a tenant versus tenant conflict, what I do is I have the tenant who's complaining talk directly to the tenant they're complaining about.

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Face to face and then having that discussion explaining you know why they're upset and then coming up with an actionable plan that they can take and implement to make sure this doesn't happen again.

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And then I have them implement the plan and most times that's enough.

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What I don't do.

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What I accidentally did at the beginning, which was a mistake, was I?

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I basically took that complaint and then I called up the other tenant and said Hey, the other tenants are complaining about you.

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What are you going to do?

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Because that just escalates the situation a lot of times, because now the tenant is.

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Going like this guy is talking behind my back.

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Telling the landlord on me, you know, and so he just gets angry.

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Or he or she right?

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So having that the tenant's kind of work it out face to face 1st and having a plan together and and coaching them through that process and really dissolves a lot of the conflict.

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You also want to have a good team in place so if something.

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Breaks down like let's say you have a broken appliance like a washer or dryer or stove top or whatever breaks down.

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You need to have a handyman in place that can go in and get the thing fixed within the first week or the first couple days of it.

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The other thing is having.

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People like specialist contractors for more bigger projects, or maybe for me it's putting those extra bedrooms in.

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I have somebody who is good at putting up the drywall, putting in the door and everything and putting in those bedrooms.

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And I just use them every time I need to put in the bedroom.

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So having the teams in place and having those contractors.

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That you can trust to get the job done is very essential as well to have a strong system to make this passive A6 figure rental income or whatever your goal is.

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Sure, so what are some of those other tactics?

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I know that you Frank.

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We don't you do self-manage these properties to a certain extent anyway, but what are some of those other strategies that you've you?

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You've mentioned that you spend maybe an hour a week managing these properties.

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What other strategies have you?

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Yeah, so yeah, I definitely so like definitely the marketing.

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I'll close on these the Facebook groups, and I have basically kind of like a funnel where I have them look through.

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I give them a rental app to fill out and then they get that back to me I offer them a video tour of the house or.

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Maybe one of the tenants could give a tour of the house.

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One of the current tenants that is or I and then I'll sorry, I'll ask for proof of income and then I'll have them sign the lease.

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So, I basically have kind of a funnel.

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A step-by-step process for marketing and getting the tenants from applying for your House all the way to a signed lease.

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The other thing is like I mentioned.

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Tenant, uh, showing the home to future tenants or future prospective tenants.

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What I do is I have the current tenants basically do an open house, so I have all the tenants come in on one day and that kind of creates that demand because they're like, oh, they get that FOMO right?

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This this other guy is also looking into.

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Getting the bedroom that I'm looking at right?

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So, I better, you know, get my paperwork in and get the lease signed as soon as possible.

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If I want to snag the room.

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And so that creates that demand that allows you to charge basically whatever market rent price you want to charge or premium price you want to charge.

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And yeah, so that's just one tactic.

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You know, having an open house basically and having one of the current tenants do the showing.

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So basically, kind of create these different.

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Protocols and plans in place allows you to create that system.

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Yeah, you know that that's one of the things that I had learned to do too.

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Is the inviting everybody at the same time, but mine was for single family homes, so if I had a single family home for rent, I would set up one time one location, invite everybody there at one time.

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Time that really helped.

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That really helped.

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Yes, exactly huh?

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It creates that urgency and demand that allow you know, makes the prospective tenant think OK, I should be, you know, pretty quick about this.

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There's a time limit.

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There's a deadline to this.

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I can't just sit on this application forever.

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Yeah, you know one of the other things that I've I, you know now I'm going to mention something.

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I've been doing lately with a lot.

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you seen those? They're like $:

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Oh yeah, yeah, I see.

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They're very inexpensive cameras.

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And then I have Internet at most of my most of my places so that.

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Or a.

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Hotspot and I put a Wyze camera in my in the vacant unit and then lock box on the door.

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And if somebody wants to see it at any time, it seems like there's a.

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There's a sense of urgency there, like if somebody is looking for a property.

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And I have to do some sort of scheduling.

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I have a less likely chance of getting something somebody in place versus.

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Yeah, you can come anytime.

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This is the process, it's always great to have that that process associating.

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Roger, right, definitely yeah.

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And I use lock boxes of course as well.

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So, if ever a contractor needs to get into the house, they just use that lock box to let themselves in get their work done, and then they send me a bill.

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I send them a check and that's you know.

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Pretty simple process.

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Yeah, no.

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It that it works so slick especially.

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Actually, when you know they're on their best behavior, because I always let them know too that there's a camera in the unit, it's not, it's not something that's hidden by any stretch so, but yeah, so it it's probably pretty beneficial to them that you have those residents that are already living there.

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Right?

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Doing the tours or hosting these events on your behalf.

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Yeah, do they provide you some sort of direct feedback to regarding some of the people that have come through?

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Yeah, definitely I can ask them.

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Hey, how did you like the tenants you know?

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Did they seem like a responsible tenant's professional type?

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I also another thing I do is I ask for referrals too and sometimes I even offer like a referee.

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I don't know how to say that, but referee fee so like.

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I guess tenant who's referred to me by another tenant signs up. Maybe I might give them $100 once the lease is signed, right?

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But here's the thing. Once you reach a certain scale, like for me, I have 23 students in one school.

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Each of those 23 students knows another, maybe three friends that might want to stay with them, right?

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So, all of a sudden, 23 * 3, that's like 69, right? You have 69 prospective tenants who might want to stay at your house, so I would say at least.

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5060 maybe 70% of my tenants incoming tenants just come through to me through a referral network by word of mouth because I've achieved that scale that magnitude that allows me to just rely on referrals at this point.

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Sure, so how long has is your typical resident staying there?

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Is it four years two years, what, what?

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What does that typically look like?

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Yeah, that's a good question. I would say maybe 50% might be just one year, another good 25%.

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30% is like two years and then another, maybe 10% to 20% may be like three years four years.

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Better, yeah.

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Sure, so what is that?

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What do you typically do like one month of deposit, similar to any other apartment?

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I do 1 1/2 months deposit and I only offer a one-year lease for everyone. So basically, August to August of the next year and that allows me basically to make sure I don't have any vacancies.

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It's back-to-back.

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You know one student leaves the other.

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The next student comes in very similar to how like student Housing Works on campus.

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As well.

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Sure, have you found that there's ever any times where I suppose you're vetting them out to the point where you don't have a lot of this.

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But where you have to do some major repairs or carpet replacements and stuff that they you have to give yourself some time there between residents.

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That's a good question, so the only repair we've had to do and like keep up deposit money was one time when the student accidentally broke a window, he just leaned back in the chair and accidentally broke the.

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Window, but other than that I haven't really had to do any major repairs, but I do have a maid kind of do a deep cleaning of the property in between, so sometimes I'll put like a week gap sometimes.

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You know some.

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Most times it's back-to-back, but sometimes I'll have like a week gap in between where I could, you know, do the deep cleaning.

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Replace flooring or whatever if I wanted to do that, I think there was one house where the carpet got really dirty, so I just replaced it with vinyl plank, so I had a week or a week and a half or so to do that.

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Sure, so do you?

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Is this part of the lease agreement?

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Too, is that?

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They as a group somehow have to put together some sort of plan to keep the common areas clean.

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Not necessarily.

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Generally, they on the tenant.

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I should say there are sometimes that were a little bit more trashy than others, but as long as it's cleaned by the end of the lease.

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I'm OK with that.

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You know, I don't really care about what happens in between, but I do coach them through.

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Hey, you have to make sure you remove all the food from the refrigerator before the next tenants come in.

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You have to make sure you know you take out the trash, etc.

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Sometimes I solicit help from the parents as well.

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You know the parents will come in with their vacuum.

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Or whatever and vacuum the whole place up.

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So, I've been generally able to do that and hire the maid as well to help me with the cleaning.

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Process, yeah, you know I the reason I ask is because I've had a.

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I can't remember the fellas name right now, but I've had another.

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Person who does something similar to you actually and and he must be in a different part of the country and different type of colleges because he has had some significant issues with the common areas and keeping things in order.

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You know those shared areas to the point where he has.

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Right?

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Learn to add additional costs to the overall. I think he charges an extra $20 a room or so.

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Thing to have a maid come in like once a week to tidy up after these college kids.

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Yeah, yeah, some people do that.

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They do like twice a month or once a.

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Month I.

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Haven't really had to do that too much from, you know, from my experience, but I guess it depends.

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I also try to tenant proof my property as much as possible, so wherever I can, I try to put in like vinyl plank.

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If there's you know, carpet.

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Uhm, originally so that I don't have to, you know, deal with.

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Clean up issues.

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Yeah, Vinyl Plank has been a lifesaver.

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I've been slowly.

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Moving some of those rental properties to that as well, especially in the living room and stuff area being where I'm at it, it's kind of more common to make sure that the bedrooms still have carpeting, but it's those common areas that have been all going to that vinyl plank.

::

ou're making a good thousand $:

::

You have the funds. If there is a major repair that comes up. A lot of people who are only making like 200, three $100 in cash flow.

::

I you know it's just not enough.

::

It doesn't make sense to me because that every single house that you have you, they have.

::

pair that you know costs like:

::

flow for us, though, you know:

::

You know, it's pretty easy to make those repairs that eventually.

::

Yeah, no, that that's what makes this this concept really attractive.

::

Is that?

::

You have, uh, a much higher return on that investment, so you know you mentioned you mentioned that you try to do a year lease.

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And I get off.

::

What happens if somebody bugs out early?

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Like you know, they decide colleges isn't a good fit.

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Yeah so.

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Yeah, so there are definitely like the school year is usually like fall semester, spring, semester, and then they're off for the summer, right?

::

So, a lot of times at least the schools I invest in, they have summer school.

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So, what I say is, hey, you know it's a year lease, but you can always sublease it during the summer.

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Or if you're taking summer school yourself, you can definitely stay at, you know at the property.

::

And what I do is I offer to help them find a subletter as well, because there's plenty of students who take summer classes usually every time, I'm able to find a subletter, as long as they let me know early enough.

::

Oh OK, so you know with all of these you got a lot of college kids coming and.

::

Going this is there's a lot of moving parts going on here in these in these properties, what are you using to manage all this?

::

Yeah, so I actually self-manage the properties again with the systems I have in place for marketing management.

::

I have a team of contractors, so I want to say it's all self-made.

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Each property, obviously.

::

I'm not going in there fixing the toilets.

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It's going to be my team of contractors who helped me on that for rent I usually collect rent through Zelle, which is an electronic payment app, and that way I don't have to worry about the check.

::

Got lost in the mail?

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That type of issue and I keep track of expenses.

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And income through excel.

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So, it's for me.

::

OK.

::

It's pretty easy.

::

Eventually I might want to outsource this out when I get to like maybe 10 properties, but right now sitting at 6 properties, this is totally doable.

::

I actually work 32 hours a week as a pharmacist still, so four days a week essentially, and I'm able to manage this rental system on the side.

::

Again, like, it only takes like less than an hour a week because I have those systems in place already.

::

So just in a nutshell, then over the past six years you've accumulated 6 rental properties.

::

That's grossing about 17,000 a month.

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Yeah, a bit more than about $17,510 per month.

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That's not.

::

That's a lot of.

::

Yeah, congratulations man.

::

That's awesome.

::

So just, uh.

::

It is part of the relationship.

::

Sorry the love is about the relationship you establish with your tenants.

::

You want to have a strong bond.

::

The trust between you and the tenants and that ensures that things go smoothly along the way.

::

Because if you need their help, they're willing to help you as long as you are showing that you're trying to help them and service them as best as possible as well.

::

Landlord, so a lot of things I do is kind of work with my tenants to get things done.

::

I call it tenant empowerment, so I show them OK.

::

If the Internet goes down, this is what you do type of thing and I have instructions for this type of stuff as well, so we kind of work together as a team and I include tenants as part of my team.

::

Yeah, you know this.

::

That's one of those things.

::

That you mentioned early on is the fact that.

::

You look for those people that are responsive to you rather quickly.

::

That kind of.

::

Is a double-edged sword, right?

::

You also have to be very responsive to your tenants.

::

Yeah, exactly, but at the same time you also uphold the rules as a landlord, right?

::

If they are, you know causing trouble or angering the other tenants you have to step in and take your leadership.

::

Right, but one last reminder.

::

Head over to new.

::

Be real estate investing dot slash guide and take Ryan up on his offer there that we have uh Ryan Shaw on the line here again and again Ryan before I let you go is there a question you wished I would have asked you here today?

::

No, I think you pretty much covered everything as far as scaling.

::

You know, be open to taking on partners.

::

Be open to using equity on your property or to pay for you.

::

Know the down payment on your future properties and for those who don't have their first rental, you know what's the very first step.

::

You need to take to get started, so boiling it down to the very first step.

::

Like maybe it's just calling a real state.

::

Agent up and asking hey, can I just look at, you know, see some of the properties or maybe just give me a video walk through some of the properties around this area 'cause I'm thinking of doing this right?

::

That's the best way to get started.

::

I mean you could read all the books, listen to you know BiggerPockets or you know, read all the blogs as much as you want.

::

ad than even if you read like:

::

So, I just encourage all those who don't have their first rental just to get, you know, dive in.

::

Find a mentor.

::

If you know want to go into a specific area, find somebody like.

::

If you're flipping finds somebody who's good at flipping right?

::

If you need help in student housing, you can contact me again. The www.investing.com/guide as a free guide that I provide for.

::

You guys for basically my system for getting started and making scaling to A6 figure portfolio.

::

Well, thank you again Ryan. This was a great conversation. I hope you come back again sometime very soon. Let's do this sooner than 150 episodes later.

::

Sounds good, Jack.

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You can find links to all of our social media accounts in the show notes.

::

See you next time.