In episode 10 of the Profitable Powerhouse Properties Podcast, your hosts Jonathan Cook and Bryan Jenkins talk to Chris Warren from Portfolio Properties. Chris is a client of AHI Group and talks about how owning rental properties doesn’t have to be a side hustle, you can really make an income buying and renting homes.
Episode Highlights:
- How Chris started with rental properties and why he selected Alabama to purchase his rental properties.
- The process Chris goes through starts with picking the market.
- Why Chris bought houses that were fully rehabbed and top of the market.
- The differences in returns in an outside market versus the market you live in.
- Whenever there’s a range on a home you have to look at the lower number.
- The biggest hurdle selling a tenanted property investor to investor.
- Keeping your tenant comfortable and happy will make them more likely to stay.
- How to cut down on wasted time with applicant approvals.
- You need to be sure that you can stand behind the work of your general contractor.
- How to build a contract when selling a home to a tenant.
- How to make money when there are so many taxes and fees.
- Don’t assume that just because a house is on a turnkey providers website that it’s automatically a good deal.
- Why an independent analysis of the product is extremely important.
- Why it’s so important to find a turnkey provider like Chris when you go to buy.
- How Chris looks at providing a property to somebody.
- Why Chris is so highly selective about the properties he buys.
- The biggest challenge is to find the right houses in the right neighborhoods at the right rate.
- How putting an extra $1,000 into a home can save you a lot of grief in the long run.
Key Points:
- It’s okay to buy a property that’s been turned into a finished product.
- A major benefit of a management company is that you don’t have any applicants who aren’t qualified.
- Be careful with properties that are already tenanted.
Tweetable Quotes:
- “What you know is a very small part of your success, it’s all about who you know.” -Chris
- “The two people who will make you the most money and save you the most money are your property manager and your contractor.” -Chris
- “If a property is not something I’d sell a relative or a close friend, I’m not going to put an offer on it in the first place.” -Chris
Resources Mentioned:
- Check out our website ahiproperties.com
- Check out Birmingham Insurance Group online or call them at (205) 616-1107
- Email Jonathan and Bryan at Podcast@AHIProperties.com
- Contact Chris at Chris@PortfolioPG.com