All Forum Posts by: Ishviyan D.

@Hadar Orkibi I somewhat disagree with Dean. In C class and low B, yes, he is 100% right.  However, in B+ and A properties I have had different experiences. My personal experience says to rehab to retail standards for the area and achieve the very top of market rent from the front on a 18 month lease.  Give that tenant great customer service during that time by being friendly (you would be surprised how many rude managers are in our market who have a God complex) and fix their maintenance issues in a timely manner and follow up after the repair to make sure they are satisfied. That is a good business model for a long term tenant.  During that time, if you want, small increases to keep up with inflation, then pass it.  If you rehab it right on the front end, there should be no reason for them to find a better house in 2 years. My strategy has always been, "never give them a reason to move, whether it be from customer service or finding a better home."  You can supply them on the front end with ceramic tile in kitchen and baths, vinyl plank flooring in den, dining and living rooms (more durable and opens up the space), nicer faucets and fans, new counter tops, etc.  Address rotten fences on the front end along with other things that could be a issue down the road. I started doing that in 2011 and I saw my maintenance and vacancy go down dramatically. 

I've found many local banks that will do a refinance immediately after I purchase the property for 80% of the appraisal. The bank I'm currently working with will actually do 80% of the appraisal upfront on the initial purchase of the property. Meaning if I buy a house for $32,000 and it appraises at $40K, the bank will full fund the purchase price at closing. We just started doing these deals about a month ago and hopefully will allow us to really pick up the pace in growing to 100 units!