All Forum Posts by: Cheng Bin Zhang

Hi,

We have a small portfolio in Boston (11 units) that we've been happily managing for the past 5 years.  We've been recently approached by a number of small/new landlords/friends about property management services.   Do folks on this forum have any experience transitioning from landlording to an independent property management service?   If so, what's been your experience?  

Would love to connect and get coffee/tea to pick your brain about this subject.

Thanks and appreciate the help,

Cheng

Hi There,

I've been looking at opportunities to grow my understanding of the property management game.  Currently, I'm managing 7 units in the greater Boston area and felt that there are ways to improve my processes.  I've done a bit of research on the various property management certifications available, and I'm curious to see if the BP community can chime in on these certifications. 

Are they helpful in helping you grow your portfolio and manage your tenants?

Which ones would you recommend and why?

Do you think they'd be helpful if you're planning to eventually start a property management business of your own?

Thanks!

Thanks @Kyle J., I'm curious if there is a cap on the number of free tenant accts you can set up?   I've used these services prior and it's free for the first x number of accounts. 

What are some other potential downsides that you've experienced?

Hi All,

I'm reaching out to the community about an electronic payment portal for tenants to submit their rent.

There are a number of options including paypal and venmo.  With Paypal, there is a fee they charge for commercial accounts per transaction.  I've been encouraging folks to do ebilling via their bank accounts but that option is not available for all banks.  And some e-transfers simply translate to a physical check being sent regardless which defeats the whole purpose of going paperless...

Does anyone have a good hack for this? or a reasonable priced solution?   Perhaps one that can send out a billing reminder?

Thanks!!

Cheng

Hey Folks,

We're planning to do our first flip/condo-conversion this year.  With buy and hold, we've been buying predominantly in B-/C+ neighborhoods.  What about for flips/condo conversions specifically?  I've heard that the margin is much higher in A class neighborhoods (ex. cost of installing a toilet is roughly the same within the great Boston area but a new bathroom is worth a heck more in Brookline, MA than it is in Dorchester, MA).  What are some indicators for a flippable neighborhood?

Thanks and appreciate it!

Cheng

Hey There,

I'm in the process of closing a new investment triplex in Boston (unit 1- large 3 bed, unit 2- 3 bed, unit 3 - studio) and I'd like to get BP's feedback on what's the best approach to tackle this.

I'm planning to upgrade the three oil furnaces to gas (~$20k) and also work on some cosmetic changes and turn a large office on unit 1 into a bedroom.  The goal is to rent out U1 as a 3 bedroom ASAP and bring it to market rent.  It'll take about a month to get my loan commitment and during this time I'd like to show unit one to my contractors and even potential tenants if possible.  I know I can't legally sign the contract before closing but is there a way around this?  Has anyone tried this before?

U2 - is currently about $400 below market value but also needs cosmetic work ($10k).  It's occupied by a longtime tenant who's super sweet and nice so I'm also conflicted on this front.

U3 - is currently occupied by a voucher holder but it's paying slightly above market rent and the gov is always on time with their payment.

In the short term I'm planning to keep both tenants and switch them over to a new lease with a $50 increase.  The goal is to get property cash-flowing within 1 month of closing.

I'd like to hear BP's input on each of these proposals and maybe outline how they might do things different?  and why?

Thanks!

Cheng

Hi All,

I'm looking at a multifamily deal where the tenants have been identified as extremely difficult and have eviction support from the local non-profit.  I'm thinking about approaching them to buy them out of their lease and perhaps even help them find suitable housing.  Are there recommendations on how much I should pay for their keys?  Any other strategies I should be aware of?  Should I execute a right of first refusal before any further work?

Thanks,

Cheng

Tapping to the BP community here. Is anyone familiar with short term rental market in the Cape Cod / P-town area of Massachusetts?  What kind of rental income can you expect over the course of the year?  Is there a solid property management presence down there?  Any other surprises such as higher tax rates, preservation requirements, flood insurance, etc?

Thanks!

Cheng

@Tarcizio Goncalves - 2% RTV (Rent to Value) is a rarity around Boston.  From my experience, I've seen RTV fluctuate between 0.4% - 1% within Boston (A - C class neighborhoods).  Doesn't mean that they're bad deals as these properties are more stable and have greater appreciation potential. 

There are higher cash flow areas (Worcester, Fall River, etc.) with much better numbers but extra due diligence is required.  You might be surprised by other expenses such as utility, taxes, insurance, etc.

@Jim Sestito - I've encountered something very similar to this when I wanted to get an OO loan for another property literally a block down the street from me. Despite all the right intentions, underwriting gave me a difficult time - saying that I'm trying to "game" the system. Here are some valid justifications if you'd like to rebut:

1. You're moving closer to work

2. Location has a shed and parking spot (where your current location does not)

3. Your family just got larger and needs extra space/units

I'm sure there are few other formal justifications that ... perhaps underwriters in BP can share.

Worst case scenario - can you take out an investor loan and refi with your proof of residency in a year.

Let me know how it goes.

Best,

Cheng