All Forum Posts by: Adriel Hsu

Hello, I am looking to replace roofs on my parents houses, one in Claremont, CA and one in Lafayette / Walnut Creek, CA

Hey Kevin,

There are plenty of different software companies out there. From what I've perused on these forums, Rentec Direct, Buildium, and Appfolio seem to be the most popular.  I personally went with Buidium for my 14-unit complex.  It's a learning curve to figure out the system, but once you do the process of onboarding tenants a few times and see how the reporting and rent collections work, it's pretty smooth and automated.  I think it's pretty powerful and helps makes things a lot smoother.  It costs me ~$40 a month (Paid full year upfront for a slight discount)

I'm getting my VA trained up on it so I can be pretty hands off in the future.

Hope this helps

Adriel

Man this brings back memories of my first deal. It was also a full gut rehab and a BRRRR and I had shady contractors.

Definitely learned a lot, real fast! Luckily my appraisal came out higher though and i got all my money out, and now I've had it on a rent to own to tenants that have been there 2 years with no issues.

So keep your head up and shift your mindset as this was an education that you didn't lose money (sounds like your equity is pretty good). It took me over a year of firing multiple contractors before I finally settled on a solid crew for each discipline (general, sheetrock, granite, foundation, etc).  Trust me things get way easier once you have contractors you can trust and are used to what you want in your rehabs.



You can see my story here:

https://www.biggerpockets.com/forums/223/topics/38...

@Grant Rothenburger No idea those even existed. Thanks for the info and recommendations. I will look into them

@Simon W. I was thinking of having my current VA handle all the admin stuff and then maybe hire another one specialized in just accounting with experience at a higher rate.

@Kenny Dahill This is in Beaumont, Texas (1.5 hours from Houston) and average rents at the property is at $700 per month

@Simon W.

Hey Simon,

The VA actually is not doing any of it right now, the property management company is. I am debating about firing them and switching those tasks off to my VA

@Richard Sherman

I would probably use buildium/appfolio for all online payments, and still accept bank deposit/check and figure out cash payments with the maintenance man.

Things they do well:

- Handle rent collection (Prompt notification on any missing payments or late payments)

- Enforce Late fees/eviction notice if needed

- Lease renewals

- Negotiated contract with Waste Management for a lower rate

- Most accounting stuff

Issues that I have experienced:

- They are not paying my maintenance man on a timely manner (They had said they can do phone payments when he goes to Home Depot or Lowes but they do not pickup when he calls for payment.  He is supposed to paid weekly but there has been delays consistently on getting him paid.)

- They do not respond to my emails/texts or phone calls promptly. Sometimes they pick up when I call. Most emails and texts go unresponded to or I get a reply a week later.


- Explicitly stated I want advertisement posted on certain facebook groups and mls.  Did not post them after several weeks and I ended up posting them myself.

- Notify me of repairs late.  My maintenance man texted me Friday morning the a/c wasn't working in one unit and the furnace in another wouldn't turn off without shutting off the breaker. He notified Property Management same day.  They sent me the email of the issues Monday morning.

- Was supposed to have December P&L by the 6th. Still do not have it.

- I have to manage and negotiate contracts for Cable, Pest Control, Lawn service, myself.

Hello BP,

I have a 14 unit C+ apartment that I am debating on property management options. I work full time and I currently have an off-site management company that charges 8% monthly fee and half month's rent on lease-up.  My main issue has been lack of prompt communication and turnovers taking longer than they should. 

I already have a great maintenance man dedicated to the property I inherited from the previous owner who is on site 2-3x a week and knows the tenants personally.  He does everything repair and make ready wise (including plumbing and electrical) except for HVAC and I already have a HVAC guy I use on rehabs that I'm comfortable with (Just text him issue and he goes out and diagnoses and fixes it without me having to be there). I am a rehabber so coordinating repairs and make readies with the maintenance man is easy.

I really need management company to handle all the bookkeeping, marketing, showing units for prospective tenants, collecting rent, and evictions (if needed).

I'm debating if I should fire the property management company and:

1) Coordinate make readies and repairs with my maintenance man directly (what I've been doing). Have maintenance man take emergency calls (what he did with old owner)

2) Get a buildium or renttec or appfolio account

3) Outsource to my VA administrative stuff (marketing property online, handling general inquiries, fielding tenant calls, fielding prospective tenant calls, scheduling showings)(Tenant screening via buildium/appfolio)(Transferring utilities on turnovers)(Handling documentation (leases, addendums etc)

4) Outsource to my VA book-keeping stuff ( Collect rents, balance checkbooks, create monthly P&L statements, pay contractors, etc)

My VA is currently paid $5-6 per hour

The only in person stuff left that I can split with my maintenance man is:

- Filing Eviction notices / Going to Eviction Court

- Showing properties to prospective tenants

- Quarterly inspections

-Move-in Move Out inspections

Probably some more stuff too that I cant think of now.

Do you think that would be more cost effective and efficient while still not burdening myself with too much work?

If costs end up being the same as the property management company, I am ok with that because at least I will be running the property more efficiently.

Thanks 

Adriel

The podcast you were listening to, possibly they got the principal loan from the bank and maybe a seller carry back for the remainder of the portion?

I recently bought a 14-unit apartment and a local credit union financed 80% LTV at 5%, 25 year amortization, and a 5 year balloon. The appraisal actually came back about $30,000 lower due to an incompetent appraisal company, but the bank still approved 80% of purchase price or 85% Loan to "Value" (Property is definitely worth higher than my purchase price, but the credit union only sees the appraisal as the value)

Like @John Warren said, talk to all the small, local credit unions and banks in the area

Hello,

I had a retail buyer put in a cash offer on my flip for sale.  Went through inspections with no issues.  Day of closing, I showed up and signed all my papers, buyer's were scheduled for 1.5 hours later but never showed up.  Their realtor called them a few days later and she said she was out of town because her mom was sick and she still wanted the house.  Another week passes and still has not closed. She says she still wants the house.   2 weeks have passed and she has completely cut off contact and has not responded to the realtor.  I can't even get the earnest money as they can not get ahold of her to sign the release.

Realtor says I should get a lawyer and go for damages, I don't know if anything would happen as they can't find her.  Any thoughts?

Thanks