All Forum Posts by: Amy Alexander

Thanks to all for your advice! Good tip on the tenants’ renter’s insurance, and I’ll talk with the insurance company about the details they’re looking for. Yes, I think they’re trying to put me off with the huge amount of paperwork!

Hello everyone!  I'm fairly new to multi-family and sadly, I'm experiencing my first water damage insurance claim.  I'm working on the loss of rents portion of my claim, and the insurance company is asking for a huge stack of paperwork.  Silly me, I thought that a tax return and the leases of the last, vacating (fleeing) tenants would suffice, but no.  The insurance company asks again and again for me to specify all of the information per "unit type".  The property is a stacked four-plex, 2 units on the bottom and 2 on the top.  I would think that the unit type would be "apartment", but I thought I would ask more experienced folks what the proper term would be.  And, if you have any advice on any "got'cha's" involved in claiming loss of rents in a water damage scenario (ruptured water heater, 2 units impacted), that would be greatly appreciated!  Thank you!

@Michael S. One of the invoices that I’m asking for is for the purchase and installation of a new HVAC unit. I was told prior to the purchase that I’d need to register the unit with the manufacturer in order to extend the warranty from one year to 10 years. When I asked the property management company for the invoice so I’d have the info to do this, they told me don’t worry, it was already taken care of, you don’t need the invoice. I said that I wanted the invoice anyway for my records, and said I’d like a copy of proof of the 10-year warranty as well. I received an automated OoO reply email. I’m going to call as soon as the person is back (allegedly). Other invoices I’ve requested are for other substantial repairs. The answer to all has been “no”.

Thank you all very much for your responses. I will take steps to pressure the company to provide me with the invoices that I require!

Hello, everyone. I own several rental properties in other areas, but this is my first time buying a rental in Alabama. In other states, it’s common practice for a property management company to upload invoices for all substantial repairs to the owner portal online so that the owner has copies. My property management company in Huntsville doesn’t do this, so I’ve requested copies of particular invoices  and they’re telling me that this is not common practice in this state, and are resisting giving me any invoices whatsoever. is it actually normal to not receive any invoices, even upon request? Thank you in advance for your feedback! 

Investment Info:

Single-family residence buy & hold investment in Newbury Park.

Purchase price: $498,000
Cash invested: $510,000

Rental property. It started out as my primary residence, but I took a job out of the area and held onto the property and have been renting it out for 6 years now. I hadn't intended it as a rental investment when I bought it, and think that if I want to continue renting, I could get a better ROI elsewhere. Considering selling and doing a 1031 Exchange on something with a better return.

What made you interested in investing in this type of deal?

I just fell into it. I got a good-paying job elsewhere but thought that I might return to the area and therefore held onto the property and have been renting it out ever since. But I continue to take jobs in other areas and think that it might be quite some time before I move back, so it may not be worth holding onto it when there must be better rental investments out there.

How did you find this deal and how did you negotiate it?

I used a local real estate agent who was recommended to me by a co-worker. I used my strong credit and good standing as a buyer to negotiate for a lower price, although I was only able to talk the seller down by a few thousand dollars since it was a seller's market at the time.

How did you finance this deal?

I paid a down payment in cash that I had saved from employment income and took out a first and second mortgage for the remainder. I was later able to pay off the mortgages using a combination of employment income and the rental income that I was earning from renting out the property.

How did you add value to the deal?

I haven't done anything to add value to the deal. Rent has increased over the years just because rent has increased in that area due to the demand for rentals outweighing the supply.

What was the outcome?

I still own the property and continue to collect rental income from it. I have made some money off the investment, but not to a spectacular degree.

Lessons learned? Challenges?

I've learned a lot about dealing with property management companies, as I have been using a property management company to manage it for me. One thing that I have learned is that property management companies don't give much time and attention to owners who just have one single-family property. They have much more important clients to please.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I would've recommended my real estate agent, but she is no longer in the business. My mortgages, when I still had them, were sold and bought 3 times and then I refinanced the first mortgage, and can't really say much about any of the lenders. The financial institution that I used to negotiate the refinance ended up being fraudulent and stole thousands of dollars from hundreds of people - how I came out of it without losing my money and actually ending up with a refinance is a long story.