Some Must Reads for Real Estate Investors: Single-Family Edition
Real Estate investing can be a daunting industry to break into! Between determining how to obtain financing, picking a property, and figuring out how to get the best ROI (return on investment) there is so much to know and learn that it can be overwhelming to the point of discouragement. One of the best ways to learn about real estate investing is to read books written by investors and other experts.
Below is a list of some of the most popular books among single-family real estate investors.
One Rental At A Time
Have you ever thought about real estate investing as a path to financial freedom? Have you kicked around the idea but felt you were too busy with work and family responsibilities? If so, One Rental at a Time will transform your life, just as it has transformed the lives of thousands of others.
This book reveals how buying and holding rental properties will create a second income that can, in time, allow you to quit your day job. It worked for me and it can work for you too. What’s stopping you? Read the book and learn how One Rental at a Time can lead to financial independence.
Best of the BRRR Method: Buy, Rehab, Rent, Refinance, Repeat
“Buy, Rehab, Rent, Refinance, Repeat,” or the BRRRR method, was developed by real estate investor David Greene. This 2019 book details each step of his process, including how to start or scale your real estate portfolio, from managing single-family properties to 100-plus unit apartment complexes. This comprehensive guide to house flipping also features a thorough explanation of terms, methodologies, and examples. Greene is the co-host of the BiggerPockets podcast and has been featured on HGTV.
How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started
Everyone knows real estate investing can be a powerful way to build wealth and achieve true financial freedom. But, because each person’s journey is different, knowing the first steps to take can be challenging.
That’s why two of the biggest names in the real estate world teamed up to write the most comprehensive manual ever written on getting started in the lucrative business of real estate investing. Josh Dorkin and Brandon Turner—longtime hosts of the world’s #1 real estate podcast, The BiggerPockets Podcast—give you an insider’s look at the many different niches and strategies that exist. Find which one works best for you, your resources, and your goals.
Unlike most traditional real estate books, this one won’t tell you there is “one secret path” to real estate success. Instead, it dives into dozens of unique, life-changing quests and is packed with more than forty real-life stories of how real estate investors are finding success in today’s economy.
The Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals (Rich Dad's Advisors)
If you’re interested in real estate investing, you may have noticed the lack of coverage it gets in mainstream financial media, while stocks, bonds, and mutual funds are consistently touted as the safest and most profitable ways to invest. According to real estate guru Ken McElroy, that’s because financial publications, TV and radio programs make the bulk of their money from advertising paid for by the very companies who provide such mainstream financial services.
On the other hand, real estate investment is something you can do on your own–without a large amount of money up front. Picking up where he left off in the bestselling ABC’s of Real Estate Investing, McElroy reveals the next essential lessons and information that no serious investor can afford to miss.
Building Wealth One House at a Time, Updated and Expanded, Second Edition
Building Wealth One House at a Time, 2nd Edition provides you with a practical way to create wealth through an ethical approach of buying, financing, and managing property. Renowned real estate expert John W. Schaub takes you through his 9-step program and explains how to accumulate one million dollars’ worth of houses debt free in any market, while earning a steady cash flow.
This invaluable guide presents fresh strategies for buying and financing property, reflected in six new chapters on topics such as real estate cycles, financing real estate purchases, negotiation techniques, and retirement investing.
You’ll learn how to:
- Finance real estate purchases without going to a bank
- Recognize and capitalize on real estate cycles
- Improve your negotiation skills in any situation
- Avoid common and costly mistakes
- Create cash flow that lasts forever, and much more.
Have a multifamily property that you need help with? Contact us today!
Summertime Tips for Landlords
You should be sending out seasonal letters, communicating with your tenants what is expected to care for the property. A gentle reminder can go a long way to protecting your property against the damaging effects of summer – especially here in Texas! If you are wondering what exactly you should be requesting of your tenants, we have some ideas listed below!
After the bursting blooms of spring have faded, trees, grass and bushes are in full growth! It should be clear in the lease you have with your tenant who exactly is responsible for keeping everything trim and tidy. Grass lawns will need to be mown, trees and bushes will need to be kept in check and it’s the time of year where weeds will spring up in the side yards if left unattended. While a property “gone wild” is not exactly physically damaging, it could violate local HOA and City statutes, which can result in fiscal damages in the form of fines. Some creeping vines are as aggressive as they are attractive, and can split picket fencing, collapse chain link fencing, compromise the mortar of brick houses and force their way into cracks – which will damage the property! It’s much easier to maintain landscaping than it is to repair its damages.
Lock Up for Vacation
Many of us haven’t been on vacation in a while, so it’s only natural that a few precautions may have been forgotten! Remind tenants that they will need to protect the property if they decide to leave for a trip. Locking all windows and doors is the first step in preventing a break-in, but also making sure their security system is in order and that the property doesn’t seem unoccupied. Whether that’s leaving a light on, having a relative drop by the home, or parking a car in the driveway – every tip helps!
Not every property can accommodate a barbeque, most often due to space. But when the sun’s out, the grills come out so you’ll want to have established the rules for your property. When, where, and how a grill can be operated (if allowed) will best inform the tenant on how to reduce injury to themselves, overhanging trees, and the property itself. Many HOAs have rules regarding how a grill can be stored on the property (out of sight!) in order to maintain a neat appearance to anyone driving through the neighborhood.
Be Aware of HVAC Issues
When the first hot day of summer rolls around, your phone will be ringing with tenants reporting that their A/C doesn’t work. Regular inspections, as well as regular maintenance, will prevent most of these calls. However, reaching out to your tenant lets them know that you are aware that it could be an issue, and are proactive in seeking a solution! Inform your tenants that cranking the A/C may do more harm than good, and that a moderately cool temperature will help their air conditioning last all summer long. A summertime inspection is a great opportunity to address not only HVAC issues, but anything to do with pests, insulation, wiring, the integrity of decks and fencing and other damages.
All of the above are true of both single family homes and multifamily, but there are special considerations for multifamily residents! Common areas and pools are going to see an influx of resident traffic. Quiet hours may need to be established in order to keep the peace during long, hot nights. Pool rules will need to be enforced for the benefit and safety of all residents and visitors. Communicating consistently with your residents will assure them that their health and safety are being taken into consideration, and that shared amenities are available for all residents to use safely and without issue.
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Benefits and Challenges of Multifamily Property Management
Multifamily Properties may be the answer to the affordability issue that the nation currently faces. As we look forward to the post-2020 future, we will continue to see its effects on labor, wages, rent costs and the housing market.
This all affects how effective an investment your property is. Multifamily property management has a unique and quite variable set of benefits and challenges that you should be aware of whether you are renting out a duplex or are looking to build a high-rise apartment!
Getting into the Market
The Challenge: Entering the multifamily housing market is becoming a feat unto itself. There’s plenty of capital chasing after limited deals, so the competition is thick! For the same reason that many millennials aren’t able to afford their dream home, you may be facing a challenge in finding an existing property to invest in, or a lot to buy: bigger developers have seen the market trends and are moving in. Not only are single-family homes being purchased, which puts it out of reach for the average homebuyer, but developers are doing everything they can to meet the housing demand.
The Benefit: It’s not impossible to get into the market as an investor. You aren’t competing with homebuyers, and a single loan is much simpler to take on for multiple passive-income-producing units. Of course, the reason developers are focusing on multifamily is because it’s a great investment! Over the long run, multifamily housing remains steady even through economic downturns because people need affordable housing.
Buying to Hold (Rather than Sell)
The Challenge: In the past, the trend in housing as an investment was more “buy, lease, sell”: Buy a property, lease it out to recoup refurbishment costs, then sell the updated property at a net gain. However, more and more, you’re going to want to focus on the long-haul and hold the property.
The Benefit: Multifamily housing is a dependable source of income that has seen an increase in the length of residency. Increased multifamily tenancy has come as the result of the increased competition for single-family residences, the need for affordable housing, and the desire of some to build credit or save for a permanent home. In any case, steady management of multifamily properties is a guaranteed income for an investor!
Appealing to Multiple Generations
The Challenge: We’ve discussed before that there has been an increased focus on the generations that make up the largest portion of the rental population: Millennials and Gen Z. Not only is affordability at the top of the list, but environmentally sounds practices, convenience and location also dominate the rental desires of these generations who are willing to sacrifice space for walkability. However, Empty Nesters are a significant part of the growing rental population, and their needs are different. Empty Nesters generally have more disposable income and appreciate more space. So while you may be crunching the numbers on one-and-two bedrooms with reduced square footage to maximize profitability, you may be cornering yourself out of the Empty Nester market that prefers three or more bedrooms in a multifamily setting.
The Benefit: Remember that as a multifamily manager, you are not catering to an age range – you are catering to a lifestyle that renters want. Most people want peace, quiet, and a place to live their lives privately, wherever that may be. Implementing a variety of floorplans means that you can capture business whether it’s an extroverted Gen Z who likes to bike to the city or a retired grandparent who wants to keep a guest room open just in case they get a visitor. You are in no way limited with your plans moving forward, as the demand on each end of the spectrum is so high!
Short Term Rentals
The Challenge: Airbnb has disrupted the home buying and rental markets in a very short amount of time. Single-family homes have been removed from the market and turned into short-term rental properties that drive up home prices in areas that homebuyers were previously able to afford. However; the screening process for short-term renters is often unregulated and the lack of a thorough screening can put your property, and other tenants, at increased risk.
The Benefits: Multifamily units as short-term rentals caters to the here-and-gone crowd without alienating the local population. Some property managers create properties for the sole purpose of short-term rentals, while others at least keep them separated from the long-term lease-holders. The demand isn’t quite there in many areas for this to be considered absolutely steady income, but it is a great way to attain a resident while marketing for long-term leases.
The Challenge: Residential real estate in most major metropolitan areas are primarily zoned for single-family housing. Multifamily buildings and complexes have consistently faced suppression as affordable housing has been mischaracterized as “low-rent”.
The Benefit: Some places are revisiting that strategy in order to combat the affordability crisis. In fact, you aren’t only seeing apartments in urban areas anymore – they’re going suburban! As the ever-increasing need for housing continues in the competitive housing and rental markets, multifamily is the practical solution for many cities. Not only is zoning adapting to the changing climate, but with the latest economic crisis on top of the continuing economic issues the average renter faces, there is the probability that legislation that introduces rent control will be more prevalent. Coastal markets are likely to see these efforts long before the Texas housing market, especially in the Dallas / Fort Worth markets! But adaptability is key, and information is king!
Looking at multifamily property management, it can be easy to miss the forest for the trees. There is a huge breadth of opportunities for success with multifamily properties, and it’s one of the most versatile investments in real estate. Frontline Property Management has the experts and supporting staff you need, whether you’re building new or buying in – we want to help!
Contact us today to discuss your future in multifamily investment and property management!
Have a multifamily property that you need help with? Contact us today!
Choosing a Real Estate Market
The Dallas / Fort Worth real estate market, where Frontline Property Management does the majority of our business, is one of the hottest real estate markets in the US – and that’s even considering recent shutdowns and other issues caused by the pandemic. But what makes a market a good one to invest in, or to convert empty property into rentals in, and how do you determine if it’s right for you?
Study Population Growth (& Watch What Millennials Do)
The housing market isn’t the only thing that’s booming in the Dallas / Fort Worth area. We’re on track to have the most new residents of any metro area through the end of the decade. That’s not just native growth – due to low mortgage rates and other influences we’ll discuss, more people than ever are moving to the Dallas / Fort Worth area.
Where people are moving – especially millennials, who make up the majority of the workforce – there will be a demand for housing. The way things are working out for the largest portion of the population, we can expect that renting will be the most common form of housing financially available and affordable. (That’s where you come in!)
Quality of Life
There’s a reason some small towns are struggling to thrive and suffer housing depreciation while places like DFW are experiencing a skyrocketing population: accessible and diverse activities. The Dallas / Fort Worth area boasts of things to do! Everything from parks to the arts can be found, and everything in between. These are very important to millenials, who will more readily take a job in a city with entertainment, public transportation, and affordable housing over a market that has very cheap housing but not much else. After 2020, you can expect that millennials will emphasize connectivity.
For this reason, among the others, the home appreciation in DFW is expected to do nothing but climb.
Of course, there are a lot of nuts and bolts in the property management machine to consider! Frontline Property Management will help you evaluate your rental property and the market that it’s in, down to the competitive pricing of the neighborhood. If you haven’t yet invested in a property in the DFW area yet, but would like to, we’d be more than happy to discuss helping you build and manage a portfolio with us!
Do you have a property that you need help with? Just fill out this form and we will reach out to you!