All Forum Posts by: Chris Penny

Hello, All.  My tenant is complaining about cracks forming in the walls of our rental house that was built around 1930.  I told him that with all of the rain I suspect the foundation is settling but thought I would ask more experienced folks for their take.   Should I get an engineer to look at it?  If so, anybody have a referral?

I told the renter my suspicions and said I would rather wait a few months for things to dry out and settle down before fixing it.  Want to make sure I am not overlooking a larger problem.

Thanks - Chris

Thanks @Mindy Jensen.  I hate tile too. Based on your and other comments I would keep the pool. It looks to be in good shape.  The exterior needs paint but has nice landscaping. One garage was in the process of a non permitted conversion of a 3 BR into a 4 BR. I want to convert that to a 3 BR and a studio. The other garage is rented to the other 3 BR on the property.  I would convert that garage as well when I have the chance.  So I can eventually convert the 10 unit property in to a 12 units.

Thanks, all.  I forgot to mention that all the units have washer and dryer hookups.  Are you suggesting that I provide the actual washers and dryers?

I believe the property was built in the 80's.  In the units I saw, most of the apartment is carpet except for the kitchen.  I think wood flooring will last longer, no?

Hello, All. Putting in a bid on a 10 unit apartment building. Following the BRRR formula, I will be looking to improve the property, raise the rents and refinance. My question is what improvements will give me the most bang for the buck and which will be a waste of money. The exterior needs paint and some of the eves need to be replaced. There are two 2-car garages that I want to convert to studios. The kitchens are dated with tile counters and ceramic sinks that are chipped and worn. I want to put in granite counters, re-face the ugly dark brown cabinets, new fridges and stoves. I have also thought about filling in the pool and planting grass in the courtyard to save that expense, but not sure how popular the pool is for attracting tenants. The building is in Fresno, CA so pretty hot in the summer. The patios are also in need of attention, so looking at replacing the fencing and pouring concrete patios. Many closet doors are old and shabby. Thinking of floorboard trim all around. Maybe a two color paint scheme.

Am I on the right track?  Doing too much?  Anything I might have overlooked?

Cheers - Chris Penny

Thanks @Jim Brewer.  I would not be opposed to an exclusive if I had a good rapport with the broker and felt that the broker was expert in his or her geographical area.  But the way this all went down showed me that I do not want to work with this broker. I do not like the way he does business.

@Chris Tracy, thanks for the input.  I understand that these agreements are not unheard of. But I was irked at how it came about.  He never discussed the agreement with me, he just asked if I wanted to see some properties not yet on the market.  Then he sends over an agreement and wants $1500, which we also never discussed.  We have never even talked on the phone.  That is just bad business and awful sales technique.  What's more...his web site is mostly commercial leases.  He had only one commercial property for sale and it was uninspiring.  There was nothing that would convince me that he should have an exclusive, let alone get a fee. He basically wants an exclusive and $1500 of my money just to see these secret properties.  Based on what is on his web site, I have no faith that those properties would be anything worth pursuing. 

Hi, All.  I contacted a broker about a 6 unit property that ended up not being right.  He said he had some properties that were not yet on the market and would I like to see them?  I said I would be interested.  What he sent was a document entitled "EXCLUSIVE RIGHT TO REPRESENT BUYER IN THE PURCHASE OF REAL PROPERTY".  It was a contract that he is my exclusive broker. On top of that, the contract stipulates that I pay him $1500 up front "in consideration of Real Estate services rendered."

We never discussed an exclusive at any point. He just sent it. I have not met him and we have not spoken over the phone.  

Is this standard in commercial real estate?

Cheers - Chris

Thanks, everyone.

Hi, all.  I am looking at a property in a smaller area outside a major metro city.  It is a nice area, but I see no other multi-family properties of comparable size.  So how do I assess the value?  Should I look at the rents and see how they compare to other rents in the area?  Or is there another method I am overlooking?

Cheers - Chris

Good advice, thanks.  It may be a moot point on this property, as I noticed one income line includes  subsidized housing.  Not interested in dealing with Section 8, but waiting for more info from the broker.