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All Forum Posts by: Charles Mangum

Charles Mangum has started 17 posts and replied 33 times.

Post: Interior Paint Sheen?

Charles MangumPosted
  • Aguila, AZ
  • Posts 34
  • Votes 1

Also, my new go to color is going to be Sherwin Williams Antique White, in Masterhide Flat.  I get it for $18 a gallon. Seems to be in the Greige category to me which things seem to be trending.  I find if it's too gray it looks depressing to me.

Post: Interior Paint Sheen?

Charles MangumPosted
  • Aguila, AZ
  • Posts 34
  • Votes 1

It is interesting that there is no consensus on this.  Right now I'm of the opinion that painting with flat is the best way to go.  Then upon turnover you can touch up which might cost a little more but is probably easier than cleaning.  Also, you aren't likely to have to cut in for trim and ceilings everywhere and that's the real time/energy suck in painting.  Rolling freely on the walls is easy peasy. As mentioned you also get the new paint smell which is definitely a plus to potential renters.  

I think the biggest downside is the tenant getting frustrated with all the handprints and dirt etc.  Therefore, I'm going to provide sheets of general move in information that includes the paint color, sheen and manufacturer or maybe just leave a can for them and let them know that they can touch up if it is bothering them.

Put another way, what percentage of sold multifamilies are 'off market' in your estimation?

One building has window units the other was rewired with new electrical panels and each has there own individual ac heat pump unit.   I think the main reason this building was converted in this way was to be able to remove the boiler and convert that room into a laundry.   

I like the option idea.  It needs a good bit of work though to do what I want to with it. 

so that might be complicated to work out with a bank. 

Thanks Joel. 

Parking lot, roof and 1/2 of the a/c was done 3 years ago.  New windows would be good so for that and rehab on the 12 vacant units, I would say $60k.  I think this would take it into "B" rents which I believe on average would be $430 per unit. 

Therefore, fully leased proforma: 430 X 24 = 10,320 month X 12 = 123,840 gross expected income

123,840 x .40 (60% annual costs) = 49,536 NOI

At a 10 cap for resale the value is 495,360 fully stabilized.

There is also another $7,200 per year in laundry machine revenue (not sure the expenses or if we could assume the 60% expenses would include that).

The electric is direct bill (tenants pay directly) in one of the buildings.  Gas is included in the other building (1/2 the units).  Water is included in monthly rent.  So 60% is probably conservative. 

Right now there is an onsite manager (i'm not sure what his compensation is).  He seems pretty capable at running things at the 'c' level (ie. he mows the lawn, shows the apt., cleans them out, hires the repairment, etc.  I live approximately 1 hr. and 20 mins from here and I have 3 kids so it might not be the best investment for me. 

All this info is just on touring, I would conduct more in depth during due diligence post Letter of Intent agreement.

Thoughts?

Thanks all.

Evan,

Price is $435k and rents are $4,650/month for the 12 that are presently rented. The other 12 vacant are the same configurations (bed bath).

I'm looking at a 24 unit in a small town. The property is bank owned and is ~50% full. The bank has been telling the onsite manager not to lease the property for the last 6-8 months. I'm assuming one would just have to utilize pro-formas to come up with the value of the property. I'm wondering what kind of parameters / assumptions I should make in the proforma to come up with a proforma NOI and subsequently the price I would off

I currently have 7 rental houses and I am looking to make my next investment purchase a multifamily. I toured a 24 unit about 1.5 hours drive from my house.  It is in a small town (population 7,600) but numbers at first appear to be very good and I believe it would be a pretty straightforward transition from c to a b property.  Ideally I'd like to buy 50+ unit multifamily to get the economies of scale of an onsite manager, but again this one seems to work numbers wise and meets all my return objectives.  I have a full time job and 3 kids so of course time is a factor.  I think this might  be a good stepping stone to the bigger properties and raising money.  Thanks for your insight.

Thank you both. My contractor says that by law insurance premiums can't be increased as a result of an act of God claim such as hail damage. Seems like my premiums go up every year regardless but for other reasons. However that is for existing insurance. My main concern is being able to get insurance on new properties acquired.

I could pose the question to my insurer but wouldn't they just say 'yes you may have more expensive premiums or may not be insurable for your new aacquisitions'. That way you won't file a claim and they won't have to pay?

In 2013 I had two claims at two different rental properties of mine for hail damage. I have a house now that I'm going to put up for sale in October. It clearly has hail damage on the roof. It is probably about 15 years old. It looks good pretty good (that is it's not ugly worn out). I'm assuming if I replace the roof it will be a more valuable property. My concern, however, is that if I have another claim it might make it might be difficult to find insurance for properties I intend to buy in the next 6 months.

Any guidance / experience here? What would you do- file the claim and replace the roof or sell it with the current roof?