All Forum Posts by: Jeff Owens

Dawn, I am not a participant in this thread, but wanted to thank you for the info you posted. I am only 30 pages in and realizing how valuable the information is.

I don't have a lot of nice things to say about property management companies. I have used many but none in your area. The reason I just recently joined this forum is because I am about to manage my properties on my own, though I have previously manged homes I once lived in myself, I left all the investment properties up to the "professionals"

In my experience I found one of two things to be true with prop man companies. Either you set it on autopilot and they will spend every last dime you make, or they will contact you for every last request and you are basically doing it yourself but without meeting the tenants or driving to the property.

I prefer switching to doing it myself because I was asked by PM if I wanted to spend 10k on a roof, and I thought it was high, called a roofer, and went myself to get a quote. The man said "I would love to sell you a new roof, but all you have wrong is a handful of shingles blown off from the last storm, if you don't mind the shingles not matching 100 percent, I can patch it up for 300 bucks this afternoon and you should be good for 5 or 6 years or so before you need to replace it"

No one who rents treats a property as if they own it, and no one who manages does either. It boils down to if you want it done right, do it yourself.

Thanks Edward, I was leaning towards the same thing, but was hoping for a faster time frame. I guess I just got greedy. Truth be told I stole this property with an all cash close quick offer. It's cap rate is 17 percent as is, in a market where 9 percent is average. 80 year old owner just wants a lump of cash and is liquidating all the properties he owns. I was looking at bringing rent up quickly as gravy on the potatoes. This one gets me to semi retirement, just doing books and answering a few calls. I am 36.

Not sure if it's the dumbest, or just the most unethical, illegal or simply immoral thing I have heard, or maybe all of the above. Last year I received a call from a man renting what used to be my personal home, explaining to me that he didn't have the money for rent, wouldn't anytime soon because of a job loss, and asked me if we could barter rent, for sex with his wife. While she was a very attractive woman, I politely declined and drove to the courthouse as fast as I could to file for an eviction. I don't even know what the laws are on that, but it can't possibly be good. I am a landlord not a landFWB.

I apologize for the length of my post, I wanted to provide as much information as possible to hopefully get the best advice possible.

I am currently under contract to pick up a small 20 unit complex of 2 bedroom units. The complex contains 6 units who have tenants who have been there over 10 years, and a handful that have been there 4 or 5 years. All of whom pay on time and are good tenants, so I do not wish to lose them. I do however want to get rents up to market value.

I am in an area that enjoys a low cost of living and the rent roll ranges from 500 to 700 a month on nearly identical units features and square footage wise. Floor plans are different in the 4 buildings in the complex. Historic buildings built in 1908 as part of a college who closed down in the 30s, converted to apartments some time ago, so every building is unique.

I know that I can't close on this and just jump half the complex 200 a month the day I close, I was thinking of doing some meaningful to tenants type improvements adding a few amenities, like for example it's on 3.5 acres of park like land. I was thinking of putting in a picnic area with park grills, and a fire pit, and a covered picnic table area, maybe a few gazebos that overlook the spring on the property, I noticed that some tenants have kids, maybe a little play ground. I also have to do some repairs to the outside of the property that have been neglected in the past, about 100k worth of work. I am hoping that when tenants see a lot of work going on for a while, they will understand when I raise rent by 10 percent a year on the underpriced units until they are in line with market value.

I don't have this problem on my other properties as I always raise rent yearly by amounts so small that it doesn't offend tenants, instead of allowing large gaps to occur like the current owner of the property did. This is my first property so out of line with market value, and I am not sure the most appropriate way to adjust while still retaining good tenants.

Any and all advice is very much appreciated!

I am in VA, but in the Roanoke/Salem area.