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All Forum Posts by: Ari Newman

Ari Newman has started 38 posts and replied 81 times.

I've been self-managing my portfolio since I started investing and have decided to hire a property manager for a duplex that I'm purchasing.  I'm reviewing their management agreement and came upon:

Is this a typical compensation clause that most Management/Broker companies include in their agreements?  

I am wondering, what are other investors seeing property management charge for lease renewals and new-tenant placement?  From the people I've spoken to (in Atlanta, GA) Tenant placement seems to be a charge equal to 1 month rent, where lease renewal is anywhere from 1 month rent to no renewal fee.  Just trying to get an idea of what to expect when hiring a new manager.

Thanks

Post: Recommendation for MF property-manager ?

Ari NewmanPosted
  • Atlanta, GA
  • Posts 88
  • Votes 31

Hello,

Can someone recommend a multi-family property manager that can work w/Sec 8?  The property is in Grove Park.

Thanks!

Post: Can you help solve this Mystery?

Ari NewmanPosted
  • Atlanta, GA
  • Posts 88
  • Votes 31

I'm trying to help my Sister & her Husband solve this issue that's been plaguing them.  Any advice or recommendations for a specialist would be greatly appreciate. (They are in W. Bloomfield, MI)   Here's her narrative below:


The home was purchased in 2016 and all the carpet and wall paper was removed. The house was completely painted with both latex and oil based paint. New engineered floating hardwood floors were installed over the slab and other hardwood floors were sanded and restrained before moving in. Basement was gutted and drywall and ceiling tiles were added and painted.

The garage had a strange odor and the floor was sticky from old carpet so the floors were epoxy painted. New recessed lights and electrical work too. .Due to smells in the garage not going away, the drywall on the 3 walls was removed and the garage was then insulated with cellulose insulation , drywalled again and painted. The ceiling beams was spray painted black.

There was an odor still coming into the house so it was suggested that we had a rodent issues and to remove all the old fiberglass insulation in the attic and put cellulose which is coated in borax to deter animals and help insulate the house. They also spray foamed in the basement.

My husband was having a sensitivity in the basement and garage where his skin was itchy prickly so he removed the new ceiling tile and new carpet that was off gassing but it didn’t help.

After the cellulose was installed, he started having breathing problems and felt as if the house was too tight. So he started having tests done to test the levels, he did mold testing, water tests, blower door tests, carbon dioxide tests, and after all the tests it was suggested by a few air quality people to add ventilation that maybe the house was too tight . Then an ERV was installed but it was oversized for the house so it didn’t run all the time. He also blasted ozone at one point. We also rented air scrubbers.

It wasn’t until after I had the baby that I started having chemical sensitivity , I was in the house 24/7 for 3 months. I always felt like the house was dry but the humidity meter showed it was fine.

My husband then changed out all the recessed lights to airtight lights and on a few of them they used fire safe caulk. We also turned on the a/c and there was a leak last year but they couldn’t find it in the line.

After a 4-day visit out-of-town, I felt burning in my mouth, nose, when I breathed.

We left the house. Now when you walk it there is a very strong chemical smell and we can’t pinpoint what it is. The a/c company has come out several times, we are running the a/c constantly to see if the dye they put in will show a leak. The chemical smell burns your nose and when you breath.

The ERV has been removed and and a clean air intake installed that is supposed to bring fresh air into the house.

Today consumers energy come out to look for gas leak, none. But she noticed the chemical smell.

Help ☹️ 

@Percy N.  Could you share the list with me as well?  Just started DD on a (much smaller) property.

Thanks

Thanks for all the feedback. There have been lots of SFR sales in the area but few multifamly and rentals listed in the FMLS database. I'll check out some of the other suggestions above.

Ari Newman

I'm submitting an offer an a duplex in a "hot" area of Atlanta. (Grove Park, 30318) What are some resources that you use to determine per/door rental rates? I've looked at websites like Rentometer to determine averages. The rent rolls that local landlords are posting tend to be under-market. I'm trying to lock-in my numbers and determine NOI so that I can make an appropriate offer.

Thanks for your feedback.

hi @Redgy Saint-Germain. Thanks for your input and the link on Delayed-financing. I read it but don't understand entirely...What's the difference between Delayed-financing and the 1st two Rs in the BRRRR strategy? Are you talking about tax savings?

@Victor S.  I'm hoping my numbers are correct, and I always tend to lean towards the conservative side in all my estimates.  I appreciate you & everyone else's feedback!  It's really helpful to get lots of different opinions on the same set of hard data.

@Dennis M.  I was eager to get started, was buying an off-market property below market rates and didn't have access to the BP calculator :)

But seriously, I knew it wasn't the greatest deal ever but went in it banking on appreciation.  It seems like many investors in our market (in-town Atlanta) are buying cash-flow neutral deals and holding for appreciation.  Is this approach inherently flawed?  Does a property need to cash flow (if you aren't dependent on the cash NOW) in a hot market like Atlanta?