All Forum Posts by: Chinedu Akunne

I would target option B. A five-plex is technically commercial property (anything over four units is) and should be evaluated via cap rates. Cap rates being determined by total Net Operating Income, by lowering your expenses you, in essence, increase your NOI, therefore increasing the value of the property.

I can appreciate you being mindful of how the tenants will handle it, but in the long-term is your decision. I believe the key element here is how you communicate it to the tenants. You can give them a 60-90 day notice that this is going to happen and remind them every time rent is collected. Keep them informed when the contractors will be out and how they should go about setting up their accounts with the utility providers. Re-iterate this is a fair process and that now they will only pay for what they actually use.

Good luck,

@Milton Rivera

Thanks a lot for the reply. I really appreciate the insight. Mind if I pick your brain some more?

Would you also go for option B on a 4-plex? (I'm analyzing on as well, lol)

After the notices...What do you think about offering 50% off rents on the month of the split, to cover some of their deposit and bill?

Thanks again!

0 Votes

Originally posted by @Account Closed:

@Kenneth Garrett I'm in the exact same boat as you. Brrr . But having trouble finding deals back to back. I'm having too much down time between rehabs, Any advice?

Account Closed What's your deal flow process?

0 Votes

Analyzing some deals on ways to increase cash flow on multi-family properties...

One of such deals is a 5-plex, with one water meter. Current landlord pays about $60/unit/month on water, sewer and garbage. That's $300/month that could be cash flow. I would like to change that. I have two options...technically 3;

A- Continue to pay $300/month (not really an option, lol)?

B- Pay ($3-4k) to split the water meters, and transfer the (water-sewer-garbage) bill, plus deposit to each tenant?

C- Surcharge the tenants $60/month. and absorb the occasional overage. But, pay $0 upfront to split the meters?

B or C?

As the new landlord, what would you do? Which received better by the tenants?

As a tenant, which would you rather? Keep in mind that option B also comes with a deposit to the utility company

Thanks,

Chinedu

1 Vote

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Alexandria.

Purchase price: $192,000
Cash invested: $28,800

3 units; Duplex and House

0 Votes

All Forum Posts by: Chinedu Akunne

Chinedu Akunne has started 2 posts and replied 14 times.

Post: Pay to split water meter? Or Surcharge tenants?

Post: Let's discuss the BRRRR process

Post: Pay to split water meter? Or Surcharge tenants?

Post: First or Rookie Deal