Profit saving techniques for better cash flow

Management tips and profit saving techniques for better cash flow and better long term gain.

• All rentals that have carpet flooring should have no pets!! (Long term investment property should not have carpet at all, they should have TILE flooring!)
• Glass top stoves are the best. they last longer and have less parts to go bad.
• Perform Quarterly Inspections  (check a/c filters, well equipment) You change/inspect the a/c filters while you are there.
• When meeting with your prospective tenant check these things; the upkeep and condition of their car, and drive by if previous rental is local.
• Prorate the second Month.
• Make it as easy as possible to pay (envelopes, labels, electronic payment options).
• Video tape/take pictures with your tenant in the pictures when you move them in.
• Run back ground checks! You get what you inspect not what you expect. Do more than just call their references, employers, and previous/current landlords. Use the internet (Google/Facebook are your friends).
• Be respectful and reasonable but do not be friends with your tenants.
• Do not call, return missed calls, and/or see how things are going with your tenant.  Only respond to specific messages for for specific purposes.
• Be realistic with your monthly rent ($50 more for an overpriced home can add months of vacancy).

Expenses over $300 are what kills your annualized returns.

 The most common expenses over $300 are;

• Roof
• Septic System
• A/C
• Well Equipment
• Appliances

 

Budget these for replacement.  They will last longer if they are properly maintained

 

Rehab/maintenance costs

• Tile verses carpet
• Pool maintained by tenant or by pool company
• A/C filters changed by owner/manager or tenants
• Have tenants maintain well equipment verse company

 

Mistakes to avoid when investing in Real Estate

• Do not estimate or use the opinion of someone else to determine market value. (Used recently sold comparables to determine value)
• Never make a decision on impulse or emotion
• Avoid investment property that is not separately metered (water or electric)
• Septic vs. Sewer, Well equipment vs. City water.
• Avoid fixer uppers outside of your expertise or have an expert (GC) with you
• DISCLOSE, DISCLOSE, DISCLOSE (i.e. licensed realtor)
• Find out about the financials, board membership, and rules and regulations when purchasing in a community
• General contractor vs. jack of all trades… Never band aid a repair or rehab a property halfway…
• Have either an exit strategy or long term plan for the investment (when you sale with the asset be purchased by another investor or an end user?)

Written by and presented at a SWFLREIA meeting by: Michael Lyons MBA, CAM Lyons Real Estate Inc  239-560-6164

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SWFL REIA General Meeting

Wednesday 5/17/2017, 6:00 PM

LOCATED AT: 1400 Colonial Blvd Suite 48, Fort Myers, FL 33907 click here a map of location

Topic: Seasonal versus Annual Rentals. Which technique returns a higher ROI?

We will discuss the following:

• Seasonal versus annual from an operational and legal standpoint.
• How does each perform in the APOD? The APOD is spreadsheet. APOD stands for Annual Property Operating Data.

Presenter: Michael Lyons

I have worked in real estate investing since 2001 and I have dealt with most all aspects of residential real estate investing. This includes property management, leasing, investing, wholesaling, flipping, property preservation, vacation rentals…
My education includes and an associate’s degree from Edison College, a bachelor’s and master’s degree in business from Florida Gulf Coast University. I am a licensed real estate agent and a licensed community association manager (CAM). I also served a two year mission for my church in Mexico and am completely fluent in Spanish. Other than the 2 years I spent out of the country, I have resided in Lee County my whole life.

My expertise is property management. I currently manage several hundred properties in Lee County (specifically Cape Coral, Fort Myers, North Fort Myers Lehigh Acres, and Bonita Springs. I am one of the few that enjoys doing property management. As a property manager and landlord of my own properties, I understand the importance of preserving an investment.

Schedule of events for the SWFL REIA General Meeting

 

 

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