All Forum Posts by: Daniel Raposo

Maybe you could bring in another local investor to partner with you on it?

Sounds like you are off to a great start! It would be great if you could post some pictures or more information on the properties and update the community as you go! Good luck!

Great idea. It's like yard cleanup in the fall, or grass growing in the summer....

Condos definitely present their own set of challenges just like a single family house. Be aware of things like condo rules regarding investor owned versus owner occupied units as this could effect your or your end buyers' financing possibilities, special assessments or association fees that could effect your carrying costs, condo rules regarding renovations and what owners are allowed to do or restrictions on noise or work hours. Aside from differences like this I would imagine a lot of the same concepts would apply. 

Hi @Gerrol St John

You've already made a great first move by joining and getting involved on BP. This community has ton of information available in the forums, blogs and podcast. Take some time to read up on topics you're interested in and develop a strategy that will work for you in your area. 

Good luck!!

I asked very similar questions as yours a while back and didn't get much in the way of help either. From what I have gathered, most PM companies keep a trustee account for managing client funds but don't keep actual individual bank accounts for each owner, but through accounting records. As the property manager you would collect the rents, pay the bills, hold reserves for larger expense like tax and insurance payments and future capital expenditures and then disperse remaining profits to the owners minus your fees. If additional funds are needed for capital expenses, of course the owner would have to bring funds to pay for them. Most of this will be discussed and arranged with the property owners in advance. 

Hopefully you'll get more responses, for both our sakes!

Guaranteed income will certainly help, but the credit could still be an issue if you're looking to try and get a good rate. Good luck!

Hi @Marty L.

As someone previously mentioned, FHA loans are only for owner occupied properties so you will need to go a different route for a loan if you are not going to live in it. I would say these are the types of things you should research before meeting with the loan officer and agent.

I'm not familiar with the California market where you are, but your strategy should be based on you and your partner's abilities and the opportunities in your market. You're already off to a great start being on and participating on BP. Good luck!

Hi @Austin Davis

This has been a pretty interesting thread, thanks for getting it started. I will simply say I do not think the investment in these upgrades provide enough of a savings for you (or an increase in rents) to justify the investment from a strictly financial sense. If you want to do them for the sake of environmental reasons, that is totally your prerogative. However, I do have some experience with these types of upgrades in a project I was involved with a few years ago.

My company gut renovated a 4 unit building for a CT Housing Authority to use as a model for upgrading the entire 162 unit project. We did a gut renovation including new bathrooms, kitchens, roof, plumbing, electrical, siding, landscaping and energy upgrades like energy star fixtures, natural gas HVAC, insulation, windows, etc. The total cost for the 4 units was $255k. Then the HA brought in an energy company from Michigan who convinced them they should go even further with the energy upgrades and include Geothermal heat pumps, solar PV and thermal. So we renovated the 4 unit building next door doing the same renovation as the first building, but with the additional energy upgrades. The total cost for the second building was just over $1M, with our portion of the budget being about $299k for relatively the same upgrades as before. The remaining portion of the budget was for the geothermal and solar systems for both buildings. 

How long does everyone think it will take to get a return on that $700k investment (before tax credits) from 8 rental units? 

See you guys there!