All Forum Posts by: Adam Beckstetdt

Thanks Michelle

I second Matt Nietert. Let him know I recommended you. He is fantastic.

My apoligies. I missed mentioning the rooms. They are initially setup as 2 bedroom one bath but the rehabbed one was setup as a 3 bed. That is why the rent increased so much. The lower units rear bedroom were really bad but the upper ones dont need nearly as much. I hope this clears it up.

The renovated apartment is a spacious 3 bed one bath that is getting the $725. The others are setup as a two bedroom but a lot of the rear rooms needed repairs so they weren't getting good rents on them when we purchased them. 

Up for sale is a 6plex in Toledo  Ohio OH. We are an out of state investor from Fort Wayne and purchased this last year. The distance is becoming more of a hurdle for our situation so we are looking to sell the property at a huge benefit to the next owner.

We have completely renovated one of the apartments along with quite a few building improvements and clean up. The great building had been neglected and it was our intentions to being it back to its glory. It is right off of Collingwood which has some tremendous houses on it. The renovated apartment is filled at $725 and was filled before we finished. We set the building up to be able to be sub metered with the gas as we had planned to install gas forced heat in all apartments. Currently it is only in two. When we purchased the building the tenants were paying between $350-$400 and 4 were occupied. They were in a state of just a one bedroom apartment and utilities were a mess. We have cleaned up the utilities and the renovated apartment ended up being a 3 bedroom apartment. I would recommend additional repairs but the fact is that 4 were rented in the state they were in.

Option 1 - Minimal rehab and rent remaining 5 for $400+. NOI $23,700 @ 115k = 20+Cap

Option 2 - Rehab of roughly 15k and rent remaining for $550+ NOI $32,700 @ 115k + 15k = 25+Cap

Option 3 - Rehab of roughly 75k and rent all for $725+ NOI $43,200 @ 115k + 75k = 22+Cap

Option 4 - Rehab to sell as condos. 115k cost + $75k renovation. Cost under $32k a unit and sell for $45-50k or more. I did not research this pricing as it may be low. I had not planned to take this route.

Additionally this has a basement where there used to previously be a 7th unit. These cap rates are also figured for the amounts listed and could be rented higher.

We hate to sell the unit as it has great potential however it is too far away for us. Someone can get a fantastic buy here. Last year we bought it for about $47k. After the renovations we are right at the $115k and are just trying to recoup our investment. If this was in our hometown there would be no way we would sell it.

Send any and all questions. I can go over all that was done and what we ran into. We did a main floor unit that was the worst apartment of all 6 to see the worst of repairs needed in any of the units.

Sorry I missed you at the meeting. Throw me a PM and I can share my phone number. 

Welcome to Fort Wayne. I am a buy and hold investor in Fort Wayne. It's a hot market and there is a wealth of knowledge around to soak up.

James. Glad to hear your on your way. I am somewhat new as well to buy and hold but have quickly jumped in. I would recommend you start networking and learning as much as you can. Bigger pockets is great. I would also recommend attend the Reia meeting every 3rd Saturday of the month in Fort Wayne. Each meeting has a different topic and there is a wealth of experience and knowledge there. You can use my name if you like to attend the first meeting free.

I don't drive to them to collect anything. Just to our post box to see who paid and who didn't. That leaves me going to the box at specific times to determine late fees and such. Just a huge PITA. So far I have seen some good things in this discussion leading me to reduce my grace period in the future.

My lease states I can terminate it at any time. So changes would essentially be a new lease. My late fees are $50 and on the 10th day it accrues at a per day basis. 

Most people will see it as able to pay the day before late fees but I am looking to get people with the mindset that they are due and paid by the 1st. It's looking like the most commonly suggested thing to do is to reduce the grace period.

They pay every month but are just taking advantage of the grace period. Sounds like its best to just decrease the period. Hmmmm. Thanks for all the comments BTW