Profitable Powerhouse Properties with the AHI Group

Jonathan Cook and Bryan Jenkins explore successful strategies and pitfalls of investing in Real Estate. Bryan Jenkins is a Master Property Manager and the Principle Broker of AHI Properties which has offices in Birmingham, Huntsville, Mobile, and Montgomery AL and Oklahoma City, OK. With Expert Guests we cover all the ins and outs, associated with growing your wealth with Real Estate.

In Episode 22 of the Profitable Powerhouse Properties Podcast, we talk to Jason Green of Roofstock about the company’s growth, how their platform works and benefits new and experienced investors alike, the impact COVID-19 is having on the market, and more. Keep buying, keep learning, and keep earning!

 

Episode Highlights:

  • AHI Properties has been partnered with Roofstock since 2017.
  • Roofstock is an online marketplace for people to buy tenant-occupied rental properties, removing geographic barriers to investing in real estate.
  • Roofstock is different from other aggregators because it is more full-service, walking buyers through the process and offering coaching.
  • The platform is now in 35 states so you can compare properties across hundreds of markets.
  • For a property to get listed on Roofstock, it has to first be evaluated against sales comparables and appraised.
  • Roofstock partners with the property manager for every listing to do a third-party inspection.
  • Without Roofstock, buyers often pursue buying a rental property with wildly inaccurate assumptions about what they could earn in rent in that market.
  • Roofstock uses market rent estimates from many different data points to avoid inflated numbers.
  • Zillow has an outsize impact on expectations of market estimates because people take the “Zestimate” as an objective fact.
  • Roofstock is transparent about any repairs or deferred maintenance a property might need so buyers are fully informed, especially since maintenance is the biggest challenge for absentee landlords.
  • Roofstock listings have remained steady throughout the pandemic, though there has been some buyer dropoff.
  • Roofstock has adapted their home inspections for COVID, and both Roofstock and AHI Properties have seen some slowdowns because due diligences have had to be delayed.
  • Some property managers are not renewing leases, but are just granting 2 or 3 month extensions so as not to disadvantage their tenants.
  • Buying and selling portfolios of many properties at once can be a fun puzzle to solve.
  • It isn’t the job of retail agents to know investors.
  • Roofstock only deals with single family rental properties, not multi-family units.
  • New construction homes are prevalent in the market right now and it provides peace of mind for remote investors.
  • Roofstock would like to reach a point where they can pre-sell new construction before it’s complete, but Jason hasn’t really considered selling land itself.
  • They’ve held off on working on properties under construction because they haven’t figured out how to track progress, manage vetting contractors, etc.
  • Roofstock sold all of their 65 initial launch properties and were ready to launch the next product, but they were advised to hold off due to COVID-19.
  • They will soon launch the ability to buy fractionalized equity of an investment property. Roofstock maintains ownership, insures it and manages it.
  • They’re considering trying vacation rental management.

 

3 Key Points:

  1. Traditionally, people have only been able to buy and manage real estate near to where they live, and Roofstock opens up the market nationally.
  2. Most retail agents don’t know about the intricacies of investment property world.
  3. Maintenance, renovations, and construction are the hardest things for a property owner to manage remotely.

 

Tweetable Quotes:

  • “We don’t change our underwriting or financials for anyone. It’s based on an algorithm, based on when the home was built, based on how large they are, & we’re not customizing those for providers that don’t feel like it’s showing their properties in the best light.” –Jason Green
  • “The client level services versus consultant level services you provide, that’s what someone needs when they’re looking at either purchasing or selling investment properties.” –Jonathan Cook

 

Resources Mentioned:

  • Check out our website ahiproperties.com
  • Check out Birmingham Insurance Group online or call them at (205) 616-1107
  • Buy, sell, and own investment properties the way the pros do it with www.roofstock.com
  • Email Jonathan and Bryan at Podcast@AHIProperties.com
  • Roofstock Website: https://www.roofstock.com/

In Episode 21 of the Profitable Powerhouse Properties Podcast, we talk to James Barrett of Tenant Turner about the benefits of this technology to property managers and renters alike.

 

Episode Highlights:

  • Tenant Turner is a lead generation and tracking software for property managers to centralize their leasing process for rentals and coordinate showings.
  • James Barrett and his co-founders were previously in IT and they also managed a few rental properties.
  • They are affiliated with NARPM and it has been a very beneficial partnership.
  • Tenant Turner offers lockboxes on properties so owners don’t have to conduct showings in person, which is especially beneficial during COVID-19.
  • First-time investors tend to be hesitant about potential renters doing self-showings.
  • Tenant Turner allows you to screen leads so only qualified renters can view your property and be allowed in when you aren’t there.
  • Tenant Turner collects data on renters who submit to qualify for a property and sends reporting to property owners.
  • Other sites like Craigslist and even Zillow don’t screen people for scams like Tenant Turner does.
  • Opening up times for showings allows people who work a traditional 9-5 job to see homes, and allows property owners and realtors to maintain more regular hours.
  • Property managers can adjust the available times for showings for when they’re comfortable.
  • Tenant Turner tracks when tenants arrive at a showing and that information is in your report.
  • Of course, certain small things happen like someone accidentally leaving lights on, so using Tenant Turner still requires property managers to visit their properties for cleaning and regular checks and maintenance.
  • After a showing, the tenant gives feedback to the property manager including a rating, what they liked or didn’t like about the property, and even pointing out issues that need to be fixed by the property manager, like yard maintenance.
  • This has increased the amount of feedback received because it no longer has to be face-to-face and removes the personal barrier to criticizing something.
  • Tenant Turner now works with thousands of property managers in the US and Canada and has processed over 10 million tenant leads and has tens of thousands of lockboxes.
  • Tenant Turner has highly responsive customer service if you’re having trouble with a lockbox or other feature so you don’t get stuck.
  • The lockboxes also allow vendors to access the property.
  • Self-access showings recently surpassed in-person showings on Tenant Turner.
  • The main thing stopping a tenant from renting a property is being able to see the property, so anything that can make that easier is a good business move.

 

3 Key Points:

  1. If you are able to pre-qualify tenants, then allowing them to do self-showings carries low risk.
  2. A property manager should not use this technology as an excuse to never check on the properties.
  3. You can use feedback to show your potential tenants better properties for them and to improve the properties themselves.

 

Tweetable Quotes:

  • “The reality is there is gonna be some risk with people gaining access to the property, but what we’ve found is if somebody’s gonna be truly malicious, they’re not gonna go through the hassle of using Tenant Turner.” –James Barrett
  • “What we find is helpful is we’re taking a tool like what you’re providing and we’re balancing it out. There’s always that balance of marketing the property, getting it leased quickly, but then finding a qualified renter.” –Jonathan Cook
  • “We had pre-COVID-19 property management workflows, and now we have, obviously, COVID-19 protocol. And once again this is a key piece of any successful property management and leasing team to have this type of technology deployed.” –Bryan Jenkins

 

Resources Mentioned:

Our team began thinking of ways we could help out our communities during the COVID-19 Pandemic.  We drafted an email asking our property owners and clients to pitch in and create a Rental Assistance Fund to help those truly in need of rental assistance during this crisis.  We wanted to be proactive and help our residents who have lost their jobs due to the virus.  

We have established a goal of $10,000.00 which will be used exclusively to assist those residents who have been directly impacted by the virus to include employer shutdown due to COVID-19, reduction in work hours due to COVID-19, reduction in wages earned/paid due to COVID-19.

Please Visit our Website www.Ahiproperties.com and follow the link to the fund if you can donate. 

For a direct link to the fund please visit:

https://www.gofundme.com/f/ahi-properties-rental-assistance-fund?utm_medium=email&utm_source=customer&utm_campaign=p_email%2B5806-thank-you-ask-share

 

In Episode 20 of the Profitable Powerhouse Properties Podcast, we continue “Market Madness March” with your hosts Jonathan Cook and Bryan Jenkins. They discuss the market in Huntsville, Alabama, from how quickly it’s growing to the speed the market is moving.

 

Episode Highlights:

  • 4,600 jobs will be added to Huntsville with the construction of a new Toyota plant.
  • In regards to manufacturing, the growth of cities like Montgomery and Mobile has primarily been in service to support manufacturing already going on in Huntsville.
  • The FBI and over 60 other federal agencies and contracting centers have locations in Huntsville.
  • The jobs being created in Huntsville aren’t your standard blue collar factory jobs, they’re literally in rocket science—highly skilled work requiring incredibly smart people.
  • Google also has a data center in the area.
  • These are high-paying jobs, meaning property values will go up.
  • Home value has increased by about 9% each year since 2017.
  • These new highly skilled jobs and the growth in overall population means Huntsville will need more support staff, construction workers, police, even Uber drivers.
  • There are over 200 new construction homes that are selling in the $200,000-500,000 range.
  • The market is moving incredibly fast; homes lease at $1,800 a month in a day.
  • You can’t use generic vacancy rates to figure out your profits, you should use local data to get a real understanding of the market.

 

3 Key Points:

  1. Huntsville is unique for the skilled jobs being created there as opposed to blue collar factory jobs.
  2. Growth in skilled labor requires growth in blue collar and unskilled labor workforce too, to support the growing population overall.
  3. If you want to invest in Huntsville, you have to be ready to move quickly.

 

Tweetable Quotes:

  • “In any sort of cap rate or return that you’re looking at, you’ve really got to play with the real numbers. And one of those numbers that I really think everybody needs to focus on is that vacancy rate, and maintenance.” –Jonathan Cook
  • “If you want to play in that market, you have got to be ready to pull the trigger. If you want to put an offer on something, you’ve got to do it that day or you lose it.” –Bryan Jenkins

 

Resources Mentioned:

  • Check out our website ahiproperties.com
  • Check out Birmingham Insurance Group online or call them at (205) 616-1107
  • Buy, sell, and own investment properties the way the pros do it with www.roofstock.com
  • Email Jonathan and Bryan at Podcast@AHIProperties.com

In episode 19 of the Profitable Powerhouse Properties Podcast, your hosts Jonathan Cook and Bryan Jenkins contribute to their March Market Madness series, putting a spotlight on the Mobile, Alabama market, the many reasons why this real estate market is on the rise, and the plentiful amount of business expansion in the Mobile metro area.

 

Episode Highlights:

  • March Market Madness is a focus on one of the major housing markets in Alabama every week in March. 
  • Post-Hurricane-Katrina recovery efforts in Alabama allowed for tax incentives for those doing new construction to be able to depreciate 50% of the value in year one.   
  • Mobile is an older seaport city and is where Marti Gras started.  
  • They have under 100 homes in the Mobile market and shows the least amount of lead activity.  
  • The Mobile metro population is 413,800 people.  
  • The cost of living in Mobile is 7% below the national average.  
  • The average days in Mobile above 90 degrees is 81 and the national average is 37. 
  • 2018 Airbus decided to do an expansion to their plant and revealed their plans in 2020.  
  • Austol is another big company driving economics in Mobile as well.  
  • Alabama and the Southwest region is the new Detroit for automobile production.  
  • Alabama has the second lowest property taxes in the United States. 
  • Jonathan and Bryan about the Mobile deep water seaport project’s impact on the market.  
  • Amazon and Walmart both have distribution centers in the metro Mobile area. 
  • Look past everything you think you know about a market.  

 

3 Key Points:

  1. Mobile is the smallest real estate market in Alabama.  
  2. The median price for a home in Mobile, Alabama is $151,000 and has increased 6.3% in the last year.  
  3. The median household income in Mobile, Alabama is approximately $47,000 in 2019.

 

Tweetable Quotes:

  • “We started here in the Birmingham metro marketplace and we almost simultaneously did two expansions and part of the expansion model was to Mobile and that was following Hurricane Katrina.” –Bryan Jenkins 
  • (Mobile) “If the median price is $151,000, you are talking about a deal is probably floating around $100,000. You will be able to get in there at a reasonably low price and this is going to be one of those areas that buying in early is going to make you a lot of money.” –Jonathan Cook
  • “If you are kind of shooting yourself in the foot right this minute because you didn’t buy into Huntsville five or six years ago, then buy into Mobile because this is where that was before.” –Jonathan Cook

 

Resources Mentioned:

  • Check out our website ahiproperties.com
  • Check out Birmingham Insurance Group online or call them at (205) 616-1107
  • Buy, sell, and own investment properties the way the pros do it with www.roofstock.com
  • Email Jonathan and Bryan at Podcast@AHIProperties.com

In Episode 18 of the Profitable Powerhouse Properties Podcast, kicking off “Market Madness March,” your host Jonathan Cook interviews Kim Furlow, a Realtor with AHI Properties. They discuss the details of the Montgomery, AL property investment market, from its biggest industries, transportation, and cultural attractions.

 

Episode Highlights:

  • Montgomery is a better market to buy in than Birmingham if cash flow is your priority.
  • The median value in Montgomery is $120,000 with a median rent of $900.
  • This gives you an income of about $11,000 per year, with under $1,000 in property taxes each year.
  • Montgomery has the first North American Hyundai production facility that employs around 1,300 people and has an economic impact to the state of over $4 billion.
  • Maxwell employs about 17,000 military, civil service, and contract personnel, with about 34,000 students going through there every year.
  • These major employers mean housing demand is extremely high and makes Montgomery a great place to invest.
  • Montgomery is within 600 miles of ⅓ of the entire United States population.
  • It is centrally located to major interstates, an airport that accommodates 350,000 travelers each year, access to major rail systems, and the Alabama River giving you access to the port city of Mobile.
  • Montgomery has a rich history and a lot of cultural sites including Martin Luther King Jr.’s home, the Alabama Shakespeare Festival, and more.
  • A large conference and recreation center is getting built in Montgomery, which will further expand development and construction.
  • There has been an 8.5% increase in tourism in Montgomery in 2018 alone.
  • $15.5 billion were spent in the tourism industry in Montgomery in 2015, before many of these developments even happened.
  • There are also A class homes in the suburbs outside of Montgomery, in towns like Prattville.
  • Just in the first 6 weeks of 2020, they’ve seen a 10% increase in rental properties in the Montgomery area.

 

3 Key Points:

  1. Montgomery has low taxes and high potential for cash flow, so it’s a great place to buy rental properties as an investor.
  2. People are more likely to stay in a city that has things to do and feels like a community in the way Montgomery does.
  3. Montgomery is at the point in its growth that Birmingham was at around 10 years ago, so now is the time to invest.

 

Tweetable Quotes:

  • “We’re taking a lot of these historic homes & properties & renovating them, keeping the old touches & adding a contemporary flair, & folks want to be in those areas—walking distance to downtown, to a lot of these activities, the nightlife, it’s growing exponentially.” –Kim Furlow
  • “When you add the Legacy Museum and other historic points of interest on top of the theatre and the baseball and this huge venue, you don’t have to drive to Birmingham or Atlanta.” –Kim Furlow

 

Resources Mentioned:

  • Check out our website ahiproperties.com
  • Check out Birmingham Insurance Group online or call them at (205) 616-1107
  • Buy, sell, and own investment properties the way the pros do it with www.roofstock.com
  • Email Jonathan and Bryan at Podcast@AHIProperties.com
  • Email Kim at kfurlow@ahiproperties.com 

In episode 17 of the Profitable Powerhouse Properties Podcast, your hosts Jonathan Cook and Bryan Jenkins interview Nishant Phadnis from RentPath. Nishant discusses housing supply and demand, market statistics and trends, and more.

 

Episode Highlights:

  • RentPath is the company responsible for the Apartment Guide books that were printed before the Internet, and is now a fully digital company that also owns Rent.com and Rentals.com.
  • About ⅓ of the entire United States rents their home.
  • Rental supply has grown primarily because demand for home buyers has declined.
  • The average of millennials buying a home is 34-35, when it used to be 24.
  • Because there’s little demand for homes to buy, those properties aren’t being built.
  • Millennials prefer renting because of the flexibility and affordability it offers.
  • Landlords who don’t allow pets are instantly limiting their tenant options.
  • Property managers should treat their decisions like they are the renter/homeowner; don’t just paint the one wall with scuffs, paint the whole room.
  • Laundry facilities is the number one amenity renters search for, followed by air conditioning.
  • If you have more capital and better cash flow, you’ll get a better return on your investments and be able to add more properties to your portfolio.
  • The Southeast is seeing a lot of job growth and there’s still a lot of land to buy, so there is a lot of opportunity.
  • Many people are searching “homes for rent near me” rather than homes for rent in a particular city.

 

3 Key Points:

  1. The types of properties being built are shifting from single family homes to multi-family units to match demand.
  2. Landlords should think and make decisions from the perspective of a tenant.
  3. As the demand side slows down, people are getting more innovative on the supply side.

 

Tweetable Quotes:

  • “You’re giving yourself a different classification of tenant than you would like. You want your tenants to want to live in that home. That’s their house, not your house that they’re borrowing for the term of the lease, that’s not what that is.” –Jonathan Cook
  • “We see that more and more, is what renters are filtering upon when they come to our website is in-unit washer/dryer or accessibility. It was a surprise to me because we would have thought it was privacy or things like granite countertops.” –Nishant Phadnis

 

Resources Mentioned:

  • Check out our website ahiproperties.com
  • Check out Birmingham Insurance Group online or call them at (205) 616-1107
  • Buy, sell, and own investment properties the way the pros do it with www.roofstock.com
  • Email Jonathan and Bryan at Podcast@AHIProperties.com
  • RentPath website
  • Petscreening.com 
  • Nishant Phadnis Linkedin

In episode 16 of the Profitable Powerhouse Properties Podcast, your hosts Jonathan Cook and Bryan Jenkins interview Charlene Minor from Bailey & Hunter LLC, and Joe Levio, AHI Properties’ Leasing Manager in Oklahoma City. They discuss the vetting process of Section 8 tenants, potential benefits to participating in the program, and more.

 

Episode Highlights:

  • You can have the best property out there, but if it doesn’t have tenants, you aren’t going to make any money.
  • 80% of Charlene’s portfolio involves housing vouchers.
  • Every housing authority is going to have different requirements for tenant approval.
  • With Section 8 tenants, you can’t charge more than one month rent for a security deposit, and you can’t charge extra fees.
  • One big objection to Section 8 tenants by property managers is a perceived inability to get a tenant out if they violate the lease.
  • There are a lot of misconceptions and generalizations people make about Section 8 tenants that are incorrect and harmful, like assuming they are more likely not to pay their rent on time.
  • Charlene does a home check for Section 8 tenants in their current home to assess cleanliness, pet screenings, whether they have a car, etc.
  • There may be slightly higher cost up front to approving a Section 8 tenant, but that money is made up by the longevity of that tenant in the property.
  • If your voucher tenant has failed their inspection, they have to complete any repairs they’re responsible for within a certain amount of time or they’re removed from the voucher program.
  • In some cities, if the landlord doesn’t complete repairs they’re responsible for within a certain timeframe, then the tenant’s rent can be abated.
  • Often, you can get higher than market value rent from Housing Authority tenants.
  • Whether your tenant is a Section 8 tenant or not, you should know who they are so that you don’t expect, for example, an elderly person to crawl into a loft to change an air filter.
  • It can take the housing authority a couple of months to make banking transitions if you make changes.
  • Certain investors will find participating in the voucher program particularly beneficial.

 

3 Key Points:

  1. The tenant approval process for Section 8 tenants is similar to an average tenant.
  2. There are protections in place for property managers and landlords with Section 8 tenants.
  3. Working with the housing authority and Section 8 tenants is not as scary as it seems.

 

Tweetable Quotes:

  • “Just like with any other investment, with real estate we always recommend you have a reserve available for those big items. The big ticket item I mentioned was the septic, that’s several thousand dollars.” –Joe Levio [I think]
  • “The Atlanta housing authority is desperate for houses because they have so many people with vouchers & not enough landlords participating. So they’re offering much higher rents, they’re offering leasing incentives… they’re doing everything possible.” –Charlene Minor
  • “It’s all about treating the tenant well and trying to understand the tenant. Like Charlene said, you’ve got to know your tenant. It can’t be a blanket ‘all tenants are the same.’ No they’re not!” –Jonathan Cook

 

Resources Mentioned:

  • Check out our website ahiproperties.com
  • Check out Birmingham Insurance Group online or call them at (205) 616-1107
  • Buy, sell, and own investment properties the way the pros do it with www.roofstock.com
  • Email Jonathan and Bryan at Podcast@AHIProperties.com
  • Charlene Minor Contact Info:
    • Phone: 770-912-6496
    • Email: Charlene@baileyandhunter.com

In episode 15 of the Profitable Powerhouse Properties Podcast, your hosts Jonathan Cook and Bryan Jenkins interview Phil Owen and Mark Ennis, CEO and Director of Operations at Onsight Pros. Phil and Mark discuss Onsight Pros’ model, what to look out for in property inspections, and more.

 

Episode Highlights:

  • Onsight Pros is a third party property condition reporting company that does move-in, move-out, and periodic reports on properties.
  • The company serves as a neutral party between property managers/landlords and tenants.
  • A move-in report establishes a baseline for the condition of the property to use to compare against move-out reports.
  • Onsight Pros does not make a judgment about the conditions of the property; a decision about whether it’s normal wear and tear or tenant damage is left to the landlord.
  • One of the biggest property condition issues to be aware of is the presence of pets.
  • Onsight Pros doesn’t just test the battery of a smoke detector, but they simulate a real smoke emergency to make sure detector sensors are functioning properly.
  • Onsight Pros conducts business in 20 cities in 10 states.
  • Move-in reports document every square foot of the property whether it’s damaged or not.
  • Onsight Pros can make repairs to things like smoke detectors, air filters, etc. when they’re there for an additional charge, invoiced to the management company.

 

3 Key Points:

  1. It’s important for Onsight Pros to remain a neutral party in documenting every detail of a property’s condition.
  2. Leaving the property uninspected for the entire duration of a lease leaves room for tenants to behave badly and cause more damage than if there is a stated expectation that there will be periodic reports.
  3. You need to document every inch of a property to establish an effective baseline for its condition.

  

Tweetable Quotes:

  • “We teach our folks to tell the story of the property. So if there are a lot of nail holes in the wall, we have to be able to tell that story. We want the property manager and owner to be able to understand. So it’s not an overview, it’s going to be 4 or 5 pictures.” –Mark Ennis
  • “How in the world that HVAC lasted 8 years like that I don’t know—but those are the things that can cost you a lot of unnecessary money that you can prevent by being on the property every 6 months.” –

 

Resources Mentioned:

In episode 14 of the Profitable Powerhouse Properties Podcast, your hosts Jonathan Cook and Bryan Jenkins interview Brian Flaherty, COO of Global Strategic. Brian discusses Global Strategic’s philosophy, how businesses can use their services to outsource administrative tasks, and more.

 

Episode Highlights:

  • What is Brian’s background and how did he get involved with Global Strategic?
  • Virtual assistants are a huge factor in Brian being able to move forward in his work and scale his business.
  • Any company could stand to outsource some of their work to a virtual assistant to take some administrative tasks off the plates of their managers.
  • One major benefit to using VAs is that you can free up one property management company to work with your portfolio across markets, which provides consistency and transparency instead of working with different companies with different workflows.
  • It’s best to look for a full-service outsourcing company that handles documentation, hiring, training, etc. for you.

 

3 Key Points:

  1. Scaling your business requires some investment before the payoff, and a virtual assistant is a good way to do that.
  2. There’s a substantial difference between hiring your own VA and outsourcing all VA hiring and training operations to one company.
  3. Outsourcing allows you to reinvest your savings in time and money back into your clients.

  

Tweetable Quotes:

  • “Any single organization can outsource a minimum of 10% of their entire staff. So a 10 person company can easily outsource one, maybe two positions.” –Brian Flaherty
  • “Take advantage of these tools that are out there. If you’re properly leveraging all those things, you’re going to have some savings, those savings are passed on as a competitive advantage to your clients.” –Brian Flaherty

 

Resources Mentioned:

« Newer Episodes Older Episodes »

Podbean App

Play this podcast on Podbean App