All Forum Posts by: Cary P.

Make sure whatever PM companies you talk to already manage multiple properties in this size range and class. Do not be the first! Make sure you can benefit from economy of scale.  Check out properties they manage, talk to owners and tenants.  Check in on all fees, verify there are not mark ups for maintenance, etc.  We jumped ten fold in a year and did not really know what we were getting into. I'm just trying to save others ready to make the jump the heartache we've been going through. Management is the most important piece.

@Nate Wightman, the short story is that DJ said he thought he could manage this 24-plex with a PM company. I'm just trying to find out if he already has a PM company in mind because a multi-plex is a significantly more hands on prospect than SFH. I have worked with two different PM companies in the last year. I was extremely naive about what questions to ask with the first company. With the second company, I was in a crunch and they were saying the right things, but they couldn't delivery on their promises and I'm fighting to break the contract. I've been burned twice. Before buying the multi-unit, I wa managing 6 SFH by myself and doing just fine. My hope with the multi-units was to be completely passive, but it has been anything but that. I'm just hoping DJ and anyone else who reads this post are making sure they understand the implications of jumping up to this size property and expecting that a PM can solve their problems. Just hoping a LOT of research is put into the PM company as the property itself. That is what is "killing" me right now.

I'm at my kiddo's piano practice on my phone, so this will be brief.  I've posted several times in the past about concerns with PM companies.  Do you already have a PM company in mind that handles this size and class of property?  Have you seen their properties and talked to owners and tenants about how happy they are?  Our biggest problem jumping into 20+ unit properties is the PM company.  If you message me, I'll expand on this more when I'm home.

 I'm working with an attorney now and it isn't as slam dunk as I hoped it would be.  It may be that I have to go the DORA route, but that takes so long that my contracts will expire before DORA can even look at them.  I'm debating between calling off the lawyer and riding out the contracts, but being a thorn in the PM company's side, and paying some of the money to get out. I wish people weren't so unethical.  The PM company should have just let me go because they recognize they aren't doing their job.  Dreaming, I know..

Jack, this is the misconception my group had. We bought a couple c-class properties and the initial monies and time are outrageous.  I know why "everyone" isn't doing this.  However, in a couple of years all of my deferred maintenance issues are being dealt with and the properties are increasing in both rents and value.  I'll be living this dream some day, but it isn't straight out of the gate and it is A LOT of work to get the right team in place.  I'm a lot more hands on than I ever thought I'd be.

Good luck!

Cary

Hey Folks,

I'm signed up with a PM company in the Denver area and I am VERY unhappy with the work they are providing.  I believe they are in breach of contract, but they still want me to pay about $20K to "buy out" the contract. 

Anyone have experience getting out of a contract that does not have any back outs for the owner at all?  I believe they are in breach and therefore the contract is void, but they think I am wanting to terminate the contract triggering the buy out clause.  Obviously, I have tons of evidence to the contrary, so I can "prove my case"

Thanks,

Cary

I'm currently looking into systems as well.  We have 60 units across 4 buildings and several companies.  A lot of folks have recommended rent manager, but I'm not a fan. I'm currently using QuickBooks because it's what I know, but I'm looking into Buildium.  I haven't made any decisions yet.  All of these will let you track by unit, building or company.  I'd suggest getting a software package that let's you share with your accountant and get them in place early so they can help you set it up the way they need it to be used regarding expenses, income, etc.

Cary

Hi Folks,

I'm sure the question has been asked numerous times, so I'd like to learn how to search the forum instead of posting again..

Where do I look for grants or other ways to save on replacing a system of windows or insulation on multi-family units?  Having to replace 100+ windows is a daunting prospect even working with vendor discounts for volume.

@Curtis Bidwell

> Working with weatherization programs from utilities and local agencies to change out windows and insulation at minimal cost.

This is an area where I can really use help - finding these programs.  Where do I even start to look? I have a multi-family property from 1962 and one from 1972 and the windows/insulation repairs are killing me..

Research the houses you're interested in. How long have the people owned it, is it already a rental, etc.  I would be offended as a home owner of someone approached me to buy my house because I'm not ready to sell.  Look at the condition of the houses.  If they are in good repair, pride of ownership could thwart you.  A lot of people will also think it is a deal too good to be true, so careful about the lies. How will you convince them it is a real deal? And like mentioned above, zoning could kill you.  Just because something down the street is zoned doesn't mean the places you're looking at are.