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All Forum Posts by: Garrett White

Garrett White has started 14 posts and replied 40 times.

Post: Creative Multifamily Strategies for Other Income

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18
Quote from @Wale Lawal:

@Jason Foxx

Here are ways you can increase non-rental income in a multifamily property.

Vending

Vending machines are another low-cost way to provide an added benefit to multifamily residents. The size of the benefit is often directly proportional to the demand for the products that can be purchased through the vending machines, and we like to consult residents on their preferences. In many cases, they could be snacks and soft drinks. In other cases, they could be household basics like soap, toothpaste or shampoo.

Storage

If there is unused space in a basement or parking lot of the property, converting it to paid storage provides both a valuable service to residents and a potential way to generate a steady stream of non-rental income. Converting space into storage units has a higher upfront cost, but they are very scalable and the demand for them can be high. Once the upfront cost is recovered, the income goes directly to the bottom line.

Event-Based Fees

While most of us are opposed to new fees, it can make sense to implement a fee system that is triggered by certain events. Examples of event-based fees include application fees, move-in fees and late payment fees.

These types of fees are only incurred by tenants based on certain events so they do not constitute higher rents, but they can provide an ancillary income stream that increases NOI.

Ancillary Rent

Under certain situations, it is common for multifamily real estate owners to charge ancillary rent. This is particularly common in two situations: pets and parking.

With regard to animals, pet rent is usually charged based on the size and/or weight of the animal. Fair market rent for a pet can range from $25 to $100 per month, per animal.

In dense, urban markets (like New York) where there is high demand for parking and limited supply, it is common for multifamily lease agreements to charge monthly rent for parking on a per unit, per month basis.

Cable And Internet

For larger properties, there are certain cable and internet providers that may be willing to provide a hefty payment in exchange for the exclusive rights to offer their services in the community.

The cable and internet bills are separate from rent payments so residents have the option to purchase these services (or not) and the property owner has the potential to collect a significant upfront payment in addition to recurring monthly revenue.

Bike Storage

For multifamily rental housing that is located in urban areas and/or bike-friendly cities, there may be strong demand for onsite bike storage. If this is the case, it could be a good idea to create a secured area that is dedicated to safely storing resident bicycles. Of course, residents who wish to store their bicycles will be charged a nominal fee for this service. In most cases, it is added to the tenant's rent (as a separate charge) to make it easy and convenient to pay.

Referrals

Multifamily tenants — especially new ones — have a near-constant need for services. To assist them, it can be a good idea for property managers/owners to connect with local companies that are willing to pay a commission for a successful referral.

For example, a property owner could partner with a moving company whereby they refer customers in exchange for a small commission on each sale. As a best practice, tenants should be provided with written notice of this arrangement to ensure they are aware of it and not being charged above-market rates.

All the best!


 Great information! Just got under contract for a 50 unit project and I'm looking forward to utilizing some of these strategies! 

Post: Inspectors For Apartment Building in Rocky Mount, NC

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

Hey BP!

I'm very excited to get a 48 unit property under contract this week. Would love some recommendations for Inspectors with multifamily experience in the Rocky Mount, NC area. During this process I'm also going to be looking for additional boots on the ground for maintenance and contract work. Any help would be much appreciated.
Also, if you have interest in investing/partnering please let me know and I'll send over property information.

Post: A few deals in and looking to connect!

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

Hey Steven,

Congrats on the acquisitions! I'd like to connect with everyone on this thread. Me and my business partner have acquired single family and duplex properties totaling 24 units. We now are submitting offers on larger multifamily deals and hopefully closing on a property in downtown Durham in august. Would love to hear your experiences in other markets and see if we have any opportunities to partner on some larger projects.  

Post: First-time STR - looking in and around Wilmington, NC

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

Welcome to BP. I'm also in Durham and would love to stay connected with like minded investors in the area! I have been investing in the triangel for a few years and looking to expand out for larger properties. If there's anyting I can help with, please reach out.

Post: Property management options

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

Hi Arlyn,

Ther's a lot of factors into making this decision and the response from Drew is absolutely correct. I manage my own properties around the triangle including N. Durham, as well as other investors. Would love to connect with you investor to investor and see if we have some synergies to work together. If not, I always like connecting in general!

Post: Lower Class Neighborhoods in Durham

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

Hey Henry,

This is a tough question to give a short and concise answer to. Main reason being that many of these neighborhoods are experiencing changes. 10 yrs ago I would say they all would fall below B- but today you will see A homes next door to a tear down. Would love to connect and talk more if you want to grab a coffee. 

Post: Vacant Lot $1.00 = Perfect Opportunity for a New Build Project

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18
Originally posted by @Nicholas Q.:

@Garrett White how did you get your new construction costs to be so low? That’s less than $100 per sq ft. In my area we are looking at $200-250 per sq ft for below average finishes. Did you do a spec build or manufactured home?

Spec Home. The contractor we worked with already had several homes of the same floor plan being built. He was by far the most cost effective when we were shopping around. 

Post: Vacant Lot $1.00 = Perfect Opportunity for a New Build Project

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

The $190 was strictly for the new build construction cost. The $1 was the cost to acquire the vacant lot during the duplex deal.

Post: Primary Residence Purchase -> Sold for a Nice Profit

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

Investment Info:

Single-family residence fix & flip investment in Durham.

Purchase price: $100,000
Cash invested: $2,000
Sale price: $136,500

Purchased as primary residence and sold for a profit

What made you interested in investing in this type of deal?

Lowering living expenses and building equity instead of paying rent at an apartment building.

How did you find this deal and how did you negotiate it?

Collaborated with my agent and came in 12% below asking.

How did you finance this deal?

Traditional mortgage

How did you add value to the deal?

updated appliances and spruced up small accents in the bedrooms.

What was the outcome?

Sold a little over a year later for a profit.

Lessons learned? Challenges?

Would've liked to keep it as a rental property but the next property we purchased need quite a bit of work and we wanted the cushion profits.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jonathan 'JT' Smith

Post: Vacant Lot $1.00 = Perfect Opportunity for a New Build Project

Garrett White
Posted
  • Property Manager
  • Raleigh-Durham, NC
  • Posts 42
  • Votes 18

Investment Info:

Single-family residence other investment in Durham.

Purchase price: $1
Cash invested: $190,000
Sale price: $270,000

Purchased a vacant lot as a part of acquiring a duplex next door. Used the lot to build a new construction home. (3 Bedroom 2 1/2 Bath 1920 Sq/Ft)

What made you interested in investing in this type of deal?

Made sense due to the minimal cost of the acquired land.

How did you find this deal and how did you negotiate it?

Became apart of the acquisition of the neighboring property. Because the owner didn't want to make repairs to the acquired duplex, he threw the lo in for a dollar.

How did you finance this deal?

Hard money

What was the outcome?

Another investor purchased the new build property in order for long term rental.

Lessons learned? Challenges?

This was the first experience with a new construction project. Awesome learning experience that taught me all the small details of the process.