All Forum Posts by: Anthony Addessi

Wow, this seems like government over stepping.......good luck Shane!

Hi All

Thanks for the comments.

I think we will go with pull chains and wired switch.  @Bob H.  We did not have new wire run to separate the fan from the light so for now the pull chains will be used to start the fan but I bet they will be used only once in a while as our weather is pretty consistent.  

For the fan I am going to go with the one that does have regular bulbs that I can swap to LED this way I can boost the light with lower wattage and will not have to change it out.  Thinking about $100-$130 range.   I want them to add a little style to living room get that wow factor.  But I will see as we lease them up and re-evaluate.  The first two units will come on at $2800-$3000/m so we can spare little extra.

@Jeff B. - Thanks for pointing this out as a lot of people might not understand it is not plug and play in all situations.  We did have the electrician swap the boxes.  Westinghouse does make a cool kit that does not require attic access that I used in my house but it did take some time to get it in.

Any brands that you like or do not like?

I am looking at putting ceiling fans in my new project in Redwood City CA.    I am also thinking about putting them in units that we have already remodeled as an upgrade if a tenant wants them for a price.  The units do not have AC as it is not standard for this area.  I do think this might be a nice perk to help get our units at the top of potential tenants list.   It does get up to 80% ten days a year or so and depending on the way the unit is facing it could get hot.  The work install will not be much, as right now we have standard lights so no new electrical is needed although some might need a new box to support the fan.  

1. What brands do people like?  I tend to go with great value for things that move in the units as I dont want the lowest cost that will become a headache.  
2. Do you go with pull chain or remote (seems like remote could be an issue long term)?
3. Do you put them in the family room or the bedroom?  I dont want to do both as this would be 3 fans for a 2bdr unit.
4. Has anyone offer the fan to a current tenant for a monthly increase or flat fee?  My labor cost would be $150 to install plus the cost of the fan.
5. Any other thoughts?

Hi Alex,

Yes it is and there has been a number or debates on this topic on the forums.  

There are investors that are still buying multifamily investments producing a good return.  You have to really know your market and it takes work to find the deals and get them stabilized.  Most of my deals are in very poor condition and need a lot of work, but after the work is done and they are leased they produce 6-10% cash on cash.  Like others I am still buying even at this point in the cycle.  The key is to structure your deals so you can weather a downturn.  Here are couple links to the discussions.

https://www.biggerpockets.com/forums/223/topics/35...

https://www.biggerpockets.com/forums/223/topics/35...

Cheers,

Anthony

@J. Martin I think it needs to reflect your laid back style....the ones you have seem standard for the RE industry.  Put a flipflop on it?

@Amit M. great points, I agree holding or HELOC would be other options, right now though I think there is a very high premium on 3-4 unit properties. Buyers can get a conventional mortgage and that is much smoother process for the one off buyer. The 3-4 unit turn key properties are selling at very inflated values compared to the 5+ properties, so I am planning to take advantage of this and acquire more units. I will stay strong on my number and will post an update on the status.

@John K. that is the one!

@Account Closed name the time and the place!

@Account Closed On the 5+ properties what are you using for acquisition debt? One challenge has been that deal size is larger then my LOC and rents are <50% of market so we are limited by DSCR to what works out to less the 50% of LTV and acquisition. I have looked in to construction loans which will offer IO for 24 months at 1.20 - 1.25 DSCR on stabilized NOI. Then putting a perm loan on after. Any other ideas that you are thinking about or have used?

Also on the commercial deals if you are holding long term you might look into FHA loans, they can do full term fixed amort over 35yrs for some of the deals. I have heard they can take up to 6 months to close! With super low rates right now it might make since for properties you are going to keep.