All Forum Posts by: J Newman

Does anyone have thoughts on these two? Has anyone switched? Our family has used Rent Manager for PM for 20+ years. We have an internal PM. Reviewing the files, I can see that it's not set up correctly and they are using old desktop version, so it's clunky. It's difficult to navigate and not intuitive. I'd like to transition to another software. I've done demos on a few and liked Buildium the best. The leasing manager isn't going to like this change, and then I've got to figure out what to do with 20 years of data that is probably not recorded correctly, but in the end, what's easiest and most accurate is what needs to rule. I'm going to talk to customer support with both companies again, but thought I'd check on any thoughts from those who might have had personal experience with either company or changing programs in general. Thanks in advance!

We use QB for accounting and Rent Manager for PM (I often feel like it uses us - although there customer service reps are great). I was wondering how people do classing for MF properties. We have 60+ doors. Most multi-families are a few duplexes or a quadplex on a lot, but we do have an 18+ unit quadplex property. Right now, they are classed by the deeded property, so if Property 1 has 18 units. Numbers for all 18 are combined. There are clearly problems with this. The new CPA has suggested classing by unit, and my bookkeeper is not happy. I thought she was going to fire me when I suggested it! She said it would require upgrading to the highest subscription level of QB, which is $200 each - we've got two QB subscriptions for two LLCS. It would be a lot of work for 2023 (we're doing an extension due to changes in management and systems), more than she could take on. She said we would class each property, and then if there are more than 5 units, it wouldn't work because there aren't enough subclasses in the advanced version. I'm also not thrilled about paying Intuit any more $.

This sounds a bit like a mess, so I'm hoping there is some workaround here that I could propose to my CPA. Thanks in advance for any thoughts!

Thanks!

@Teri Feeney Styers Of course! This makes so much sense. I have went over all of the repairs with our maintenance supervisor, so I think I can put this together. I do think that a few of these big things will require a loan - the paving for that one multiplex is estimated at around $30k and the septic tank issue for the large multiplex would likely be even more. If you have any thoughts on lending options for that, please let me know! Thanks! 

I don't have alot of experience with lending. I was thrown in feet first to manage our family's rental properties. I have a few questions on options for financing repairs. Thanks in advance!

Repairs: 

Right now, I'm focused on time sensitive repairs. We need to make some repairs - probably about $10k near term for a few critical repairs and a make ready. We will also likely be needing to replace some AC units this summer - that could be a few or maybe up to 10. Some are really old. That can add up in a hurry.

We do have bigger repairs that we need to make - repaving at a multiplex, etc. but could hold off a year to start on those.

Portfolio: We have 62 units. There are two companies and split about 60/40 across them.

1) My dad has been using his HELOC but it's a bit of a mess on accounting, so I'd like to get away from that. He does have good terms on his HELOC because it's older and a better rate. Can you use a HELOC in this way? From a legal perspective, it seems to be commingling a bit, but I guess it's technically a loan to the business.

2) If that's not a viable option, then I was considering a business LOC. Our cash flow is good, so I was thinking I'd get the line of credit to use for backup on these near term repairs that are less than $10k for what I can't cash flow or cover from savings. For instance, if we had 5 AC units go out, I couldn't cover that on a dime without outstripping my capex and tax savings, but I could probably pay off in a few months. So, the overall function would likely be to buy a few months to replenish savings to pay it off.

However, I do have these longer term things out on the horizon. But in a year interest rates could be better.

The bank is asking me about how long I want the terms to go, amortization, how much, etc. I haven't used a line of credit for, so I'm not sure what I should ask for and how different variables affect the rates and terms.

3) People have mentioned a portfolio loan to me, but I'm not sure if they mean a line of credit on the portfolio for each company or some other type of loan? I wouldn't want a fixed loan for this because of interest rates.

Thanks!

@Rob K. Thanks Rob! Fortunately, we are clear on that. They have had a trusts and estates lawyer for years. He set up a trust for them several years ago, and all of it is held by that trust. Dad and I are co-managing the LLCs, and are co-trustees. I'm an only child. He and I are beneficiaries now, and then me, and then my kids.

@Nicholas L. Thanks for that question! Yes, I want to stay in real estate but realize I've got a lot of catching up to do. My goals are for him -  to ensure that I have enough money available for him to get whatever care he needs (he's fully independent now, still works on his bobcat, healthy, etc. - so I guess I need to estimate what those would be - he is in his 70s and has uncles and aunts that lived until late 90s and one until 102 when no one did) and a comfortable retirement (he is extremely frugal so that's not an issue). I love him more than all of this, and he has worked hard his whole life.  My other goal and his is to build generational wealth. I do want to sell of the lowest performers yes! The main ones are in one neighborhood, and he's said he wants to sell them all or none given what he's seen happen with investors renting to anyone nearby. He owns all of the properties in one large cul de sac. Anyway, with these goals diverging in some ways, I'm feeling the pressure to ensure that I present him a great deal and pick a winner first thing. I am trying to build a network here and find some mentors and assemble a team for investment. Thanks again!

@Dave Foster Thanks for this! I have read your book. I would rather do this than a cash out refi. I'm getting my ducks in a row to speak with him. I would imagine I need the right folks involved as well. Currently, I have no team for investment. They haven't bought or financed anything since early 2000s. The properties are self/family managed as well, so no PM recommendations. 

 Thank you! Yes, this property has been owned for over 40 years. I haven't reviewed the depreciation schedules with my CPA, but I suspect that has all been exhausted. Thank you!

 Thank you so much Mose!

@Mose Gebremeskel