All Forum Posts by: Jake S.

My recommendation would be to conduct some initial research to obtain a very approximate estimate on your own, and then invite contractors to provide their own estimates.

 Hey Jake I've got some good contacts for you. One in particular that I think would help a ton. I'll message you

So I'll say rehabbing is something that is primarily going to be learned through experience

Having a contractor do a walkthrough is a waste of everyone's time if 1) you don't know what you expect to pay 2) you don't know what needs to be done 3) especially prior to making an offer and being under contract

I get having a walkthrough - but you're just going to have a bunch of no-shows and aggravated people if you're just getting them to give you estimates on something you're not even under contract on. You will also build a crap reputation. You will also find that for every 20 offers you make maybe 1-2 of them stick. So this is a real waste of time. 

I do walk-throughs after I'm under contract and have made my scope of work. Why? Because I ACTUALLY need a contractor at this point. I have an INSPECTION report to go off of (that I add to my scope of work) and I've LOOKED at the house myself and have made a scope of work. See - now I have a need and know what I actually need. 

This being said...start small with cosmetics - paint/drywall is not going to kill you price wise. Also plumbing is expensive and expect about 75% of stuff to leak from any house you purchase. There WILL be leaks, I can guarantee it. HVAC full system - furnace/condenser/air handler will run about $6000-6500 for me for a 3-4 ton. Roof just go ahead an budget 10k. Appliances 1k apiece. Full flooring for a 1500-1600 ft house I budget 4000-6000 just depending on the type of flooring, removal etc. Big stuff and full replacements is easy to budget. Dumpster 400-500/wk. So if you start small and learn you'll eventually build up to bigger and bigger rehabs. And in the process you'll find who doesn't work, and who gives you the best value as well. Then use those same people every single time. 

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Happy to send you a couple referrals 

Hi Jake - investor friendly agent here and I have distressed off-market multi-family opportunities now. I have a great network to connect you with. Email me - [email protected]