Collections, delinquency, and, in some cases, evictions, are the worst part of property management. But they are, unfortunately, part of it. You can’t escape them completely, so you need to figure out how to manage the process.

The first key things to do are to build systems and make policies."
The article also contains this video me and Phillip Syrios did on the same subject: https://www.youtube.com/watch…

Remember, properties with a mortgage rarely have a large amount of cash flow. Oftentimes, it will be something close to $100/month. If you set your rent $100 too low, then your cash flow goes to zero. If you set it $100 to high, it might sit vacant for an extra month. In which case, if the property rents for $1,200/month, again, your cash flow for the year goes to zero.

So, how should a new landlord or property manager go about setting rents? Well, I'm glad you asked.

The early data that came out right as the pandemic was starting to hit the United States were also misleading. Properties are usually under contract for at least 30 days before closing. Thus, the sales data from March came from properties with contracts signed in February, when COVID-19’s impact on the U.S. was minimal and many doubted it would become a serious problem.

But more importantly, there are two major reasons that real estate prices continue to rise:

1. Supply has shrunk.
2. Unprecedented federal action has been taken...

[Unfortunately it probably won't last] ...it takes a long time for a default to become a foreclosure and for those foreclosures to begin dragging down the housing market. By some early (and in my opinion, overly pessimistic) predictions, mortgage holders are bracing for up to 15 million defaults.

While the number likely won’t be that high, it will still be high. Yes, inventory will remain low, but as people go into default or simply need to move, large numbers of properties will eventually hit the market. With reduced demand, this will put downward pressure on housing prices.

The big thing is to be more careful and demand better deals right now as we wade our way through this recession and all the economic uncertainty that surrounds us. You want to avoid risk in a volatile and likely falling market. And experience reduces risk. Unfortunately, experience is also something that new investors don’t have.
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Therefore, I would recommend being very cautious approaching BRRRR (or any other form of real estate investment, for that matter) as a new investor for the next few months, until the economic outlook becomes more clear.

ABC News looked at data from the following states: South Carolina, Montana, Georgia, Mississippi, South Dakota, Arkansas, Colorado, Idaho, Iowa, North Dakota, Oklahoma, Tennessee, Texas, Utah, Wyoming, Kansas, Florida, Indiana, Missouri, Nebraska, Ohio.

​Analyzing seven-day averages, there were no major increases in hospitalizations, deaths or percentage of people testing positive in any of the 21 states.