All Forum Posts by: Brendan M.

I ended up closing on my second property January 30th, which helped me accomplish my goal of closing on two properties within a year (I closed on the previous home on January 31st 2018). All of the units are rented out, which provides a nice cushion to start with for cash flow. I'll have to move in within 60 days or so. I plan on replacing the plumbing to copper so that'll end up costing about $15K or so (getting quotes currently). 

Other than that, I'm up to 8 units now and want to continue growing moving forward. With the 5% down program, I can only purchase a property every year or so but I'd like to grow much faster than that. I've read Dave Lindahl's multifamily millions to get a better understanding of larger deals but, at this point, I just need to continue building out my network. 

Very helpful, thanks!  That picture you posted above - is that what the units are going to look like after rehab?

Hey guys,

Congrats! What sort of rehabs are you going to do with that  $1.5M? 

- How many units are you going to be upgrading? 

- What sorts of finishes are you going to be putting into the units? 

-  Do you see an equal amount of upside in increasing income as you do in lowering expenses? 

Thanks! 

Brendan

Hey guys, 

I'll soon be closing on another building and will be bringing up my unit count to 8 which I'll be managing. I've looked around the forums and haven't really found a comprehensive list of how other investors automate their business as to free up their time as much as possible. I imagine this is the goal for many.  

Since I'm coming up on my 1 year anniversary of closing on my first property, I thought it might be useful to look back on how I've managed my properties. I definitely need to improve as I'd like to scale and want to start early so it's not a PITA later. I've gotten most of these from @Brie Schmidt but here are some areas below that I'm interested in learning more about:

1) Filling vacant units - I use an email template that asks for all pertinent information. I then do open house showings which limit my time invested and create some competition. I use rentalapplication.net, then Transunion Smart move for criminal/credit background check. 

2) Rent Collection - I give the option of collecting rent via Chase QP, Venmo, Paypal, or Cozy.co. All my tenants have used Chase QP so far. 

3) Accounting - I use one Chase bank account. I've paid for expenses/upgrades with my personal CC and kept track through Excel. I have Quicken which I believe I'll use more this year but curious on how to scale this properly. 

4) Tenant Reminders - Don't currently do this since I live in the building. 

5) Communication - I have email/letter templates from simple lease renewal reminders to a welcome letter for new residents reminding them of policies, procedures, and provides helpful info

6) Repairs/maintenance - This is not automated at all. I'll occasionally check in with tenants to make sure everything is running properly. I don't have a calendar of when I should be doing routine maintenance however. 

If anyone has additional ways or tools they use that help them, I'd be happy to hear it. 

Brendan

@Jay Helms

Can you send me info? [email protected]

I got started with house hacking a 4 plex and currently in the process of purchasing my second house hack. I want to continue to grow from here but house hacking was a great way to balance having my own place with starting my investment career. 

Not sure if that's you're able to do that but it's a great place to start! 

I close on my second property in about a week after pushing back the closing date.

I've been showing the renovated attic unit and hoping to get that rented out for February 1st. I'm planning on moving out of my current property and into the newly purchased one within the next month. I'm hoping to have my current unit rented out for March 1st which will give me a fully occupied home. 

As for my future intentions, I really want to continue to grow my portfolio and I'm looking to add 20+ units over the next year. My mind has been bouncing around to different ideas but I'd love to find a local bank where I can invest in properties in Chicago with about 5-10% down. I'm also looking to partner with a multifamily investor and learn the ropes so I can begin purchasing 20+ unit value adds. 

Really looking forward to the next year!

Also, what's the cash flow for each? What are you looking for in a property? A lot depends on the type of properties you're looking for and your investment strategy..

Based on limited information, I'd opt for the 4 unit as well. There's more room to increase rents and if you had a vacant unit, you'd only lose 25% of rental income versus 50% with the other property. Also, I bought a four unit and have been fixing up the units over the past year. Not only have I increased rents (and cash flow!) but the value of the property has increased as well. 

Just some things to think about!

Quick update - I'm about two weeks away from finishing the last of the rehab on my first unit. 

I am under contract on a second four-unit in the Chicagoland area. This was a great deal and I thought it'd be a good idea to offer a bit over asking price to wrap things up but it ended up signaling to the seller that they could get more for the property, which I obliged. I ended up paying above asking price but it's still one of the best deals I've seen in Chicago. I officially close on January 23rd! 

@Jill F.

Not sure yet, but leaning towards just hiring it out and getting it done as quick as possible. 

Ya the wavy valances gotta go. I've added a picture of the kitchen and another of the bathroom as well. 

Musclebound for which part? - the backsplash in the kitchen? 

The paint looked pretty rough in person so was thinking of just repainting those. 

The apartment is about 1000 SQ FT I'd guess. It has two bedrooms and it'd be right around 1200-1300. 

@Jennifer Hyman

Thanks for the suggestions. I was thinking that the long peninsula already impedes movement and an island will give some countertop space to cut food on or just extra space but I can see what you're saying. I don't have dishwashers in my current units and it hasn't been an issue in the neighborhood where this property is located. 

Have you ever seen Allure in person? It actually looks great and is great for rental units. I think a hardwood would be better but I'm also trying to be cost effective here. This is a rental unit after all. 

Thanks for all the suggestions and here are some extra pics.