All Forum Posts by: Jeff Ronningen

@Jill F. This is how I do it too......and I’m wicked smaht

4.95% for 5 years seems a bit high.  I was shopping in August and found more than one lender offering 4.5% for 5 years.  I would think rates should be equal or lower now.  Ended up doing a Freddie Mac SBL for under 4% and longer duration, but those loans are challenging with additional costs and requirements.  That was a learning experience.  Also minimum loan amount is $1M.  I have a good mortgage broker who really knows multifamily financing programs and lenders.  He shops my loan out and finds the best offer.  In my opinion, commercial loans are where a broker can really shine and provide value.  You really only need one, if you don't have one yet I suggest you investigate finding one to work with.

@Krystyna Fennelly

I assume you figured out how to get it financed. Lock in as long as possible. In my experience 5 year ARMs are most common but some lenders offer 7 or 10 years.

As for the city, check for code violations or any other records with city/county offices. Also check historical utility, water, and trash costs.

Beware tax reassessment if purchase price is much different from assessed value for tax purposes. Get to work on your insurance quote early and get a big liability umbrella policy.

Big ticket repairs that can bite you include roof, foundation/structural issues, outdated electric and plumbing, HVAC and paving parking areas. Try to understand age and condition of each. Also each apartment, do they need updates, repairs, or renovations when they turn?

Do you know people when you need a handyman, carpenter, snow removal, mowing, landscaping, plumbing, electric, roofing, HVAC?

Do you have a standard lease agreement? What’s your application and screening process? How will you advertise vacancies? How will you do bookkeeping and accounting?

@Felix Stone. 20+ years ago when I was single, I house hacked and bought two 4 unit properties owner occupied. A marriage and a couple kids later I realized I could’t scale RE due to my full time corporate day job. So I took on a business partner. That’s the key decision that moved it to the next level.

@Christopher B. Good to know, I like to keep things simple.

@John Warren. John, I’m also looking into PM SW as part of getting systems in place to scale. AppFolio is expensive and seems geared to bigger operators. Wondering how many units you have, and if your decision was driven by size of your operation? Or if you’re not that big, say under 100 units, if you decided the richer features are worth it?

@Dave Spooner. Thanks for the reply, I see you’re a fellow Queen City resident. I’m also looking at PM SW. AppFolio is expensive and seems to be for managing larger numbers of units than I have. Also considering Cozy, Buildium, and Alfred.

I plan to take my residential rental business paperless. I want all my important documentation available and protected in the cloud accessible 24x7 from any device. This includes invoices, bills, receipts, statements, leases, contracts, etc. I’ve pretty much whittled it down to G Suite vs Office 365. Costs appear to be similar. Google had advantages for collaboration, but I don’t think that has much value for me. Office 365 makes it easier to use the apps I’m familiar with such as Word, Excel, and PowerPoint. Costs appear to be similar. What am I missing? Looking for input from others based on personal experience. Advance thanks BPers!

@Anthony Newbold

Take a deep breath and come to your senses. Even if you’re a mom and pop, it’s still a business. Treat it as such.

Get an attorney engaged if you haven’t already. Determine if the new CDC rule applies, I suspect it doesn’t. If so, if they’re not out by Sept. 11 I think you’ll work with the Sheriff’s department to schedule a put out.

Also get a judgement filed against them if they have decent jobs and income. In time a situation may arise which forces them to pay you. If not at least you’ve made it harder for them to find another place and stiff another landlord out of rent payments.

You’ll get past this. Figure out the lessons learned and move on. Don’t make it personal between you and them.

@Edward Liu. I like Recker and Boerger, they’re local and they have their own service technicians. They sell scratch and dent and they’ll work deals with you. I’ve received good service from the salespeople. Not sure if they’re right for your situation but they’re worth a try.