Let's Talk Landlording with Dawn Anastasi and Mindy Jensen

TL;DR

Dawn Anastasi shares landlording tips and experiences in Milwaukee.

Transcript

the reason is is it a coincidence that ever since you know I was on the podcast and meron was on podcast number 73 talking about investing in Milwaukee that somehow the rise of out of-state investors you know coming to Milwaukee I guess it's just a coincidence who knows um I'm sure it has nothing to do with Bigger Pockets members yeah all because o... Read More

Key Insights

• The rise of out-of-state investors in Milwaukee may be linked to Bigger Pockets' influence, making it harder to find high-return deals.
• Dawn owns 15 properties, actively managing and rehabbing them, highlighting the challenges of property management.
• She negotiated a $400 discount on a property due to missing copper, showcasing the importance of negotiation skills in real estate.
• Dawn plans to market a property during the holiday season, emphasizing the strategy of advertising to existing tenants for new leads.
• She uses a combination of Craigslist and syndication services for advertising, acknowledging the risks of scams but finding success in her market.
• Dawn emphasizes the importance of tenant screening, utilizing free resources in Wisconsin to check applicants' civil and criminal backgrounds.
• She advises against renting to friends and family, sharing personal experiences of evictions and the importance of separating emotions from business decisions.
• Dawn stresses the necessity of financial reserves for property management, allocating about 23% of rent for repairs, vacancies, and capital expenditures.

Questions & Answers

Q: What impact has Bigger Pockets had on Milwaukee's real estate market?

Bigger Pockets has significantly influenced Milwaukee's real estate market by attracting out-of-state investors, making it more challenging to find high-return deals. This influx has increased competition and driven down the availability of properties offering returns as high as 3%, leading local investors to settle for lower returns.

Q: How does Dawn Anastasi approach property marketing during the holiday season?

Dawn plans to market her property immediately, even during the holiday season, by first informing her existing tenants. She believes that advertising to current tenants can generate leads, as good tenants often know other reliable individuals seeking rental properties. This approach leverages her established network to find potential renters.

Q: What advertising strategies does Dawn use for her rental properties?

Dawn utilizes a combination of Craigslist and syndication services, such as Postlets, to advertise her rental properties. Despite concerns about scams, she finds success in her market. She also markets to existing tenants and uses open houses to cross-promote multiple properties, maximizing exposure and potential tenant leads.

Q: How does Dawn screen potential tenants for her properties?

Dawn emphasizes thorough tenant screening, utilizing Wisconsin's open records to check applicants' civil and criminal backgrounds. She looks for red flags like evictions and lies on applications. Dawn also contacts previous landlords to verify tenant history, ensuring she selects reliable and responsible tenants for her properties.

Q: What lesson did Dawn learn from renting to friends or family?

Dawn learned the hard way that renting to friends or family can lead to complications, as emotions may cloud business judgment. Despite knowing a tenant's financial unreliability, she rented to a friend and faced eviction issues. This experience reinforced the importance of separating personal relationships from business decisions.

Q: How does Dawn ensure financial stability in property management?

Dawn maintains financial stability by setting aside about 23% of rental income for repairs, vacancies, and capital expenditures. She emphasizes the importance of reserves, ensuring she can cover unexpected costs and vacancies without financial strain. This proactive approach helps sustain long-term success in property investment.

Q: What are Dawn's views on tenant application fees?

Dawn does not charge tenant application fees, using it as a competitive advantage. She relies on free resources in Wisconsin to screen applicants, allowing her to make informed decisions without passing costs to potential tenants. This approach differentiates her from other landlords and attracts more prospective renters.

Q: What marketing tip does Dawn offer for landlords with multiple properties?

Dawn suggests cross-marketing during open houses by listing other available properties at the same location. This strategy increases exposure and provides potential tenants with multiple options, enhancing the likelihood of filling vacancies. It is particularly effective for landlords managing several properties simultaneously.

Summary & Key Takeaways

• Dawn Anastasi discusses the impact of Bigger Pockets on Milwaukee's real estate market, noting the increased difficulty in finding high-return deals due to out-of-state investors. She shares her experience managing 15 properties, emphasizing the importance of negotiation, tenant screening, and maintaining financial reserves.

• Dawn highlights her strategy of marketing properties during the holiday season by leveraging her existing tenant network. She uses a mix of Craigslist and syndication services for advertising, acknowledging potential scams but finding success in her market. She stresses the importance of tenant screening and shares her process for verifying applicants' backgrounds.

• Dawn shares personal experiences of renting to friends and family, resulting in evictions, and emphasizes the importance of treating property management as a business. She advises landlords to maintain financial reserves, allocating a significant portion of rent for potential repairs and vacancies, ensuring long-term property investment success.