All Forum Posts by: Jeremiah T.

@Dmitriy Fomichenko, pardon the slight shift from the exact topic... can a SDIRA LLC be owned by, let's say at WY LLC?

Do you swear by a good property management firm for your own investment? Which one and why?

 Clearly you're not buying facilities with less than 80 units or so. How does your $13k gross translate into number of units, approximately? 150+?

 Was your upside strategy in this acquisition replacing the unprofessional management company with a self storage management company, a residential or a commercial management company?

 100% agree!

I know you can outsource much of the operations (online payments, answering phone, SEO) to management companies who specialize in self storage operations (https://www.storageunitsoftware.com/call-answering)...

But how do folks recommend handling onsite physical tasks (ie: offline tenant rentals, showing units, stuck doors)? Is that a service that can be provided by your typical property management company? 

I realize an employee could do this, but I'd prefer to outsource to an organization vs. hiring. From those with first hand experience, do you always hire (an) employee(s)? Or have you leveraged a property management company? 

Wondering if there has been a mix of the two or if it almost always involves W2 hires.

Thanks!

Thoughts on Scott Meyers' training program?

@Andrew Johnson, thank you for the help! I will re-work the numbers again with your advice. Yes, $5k is probably not enough. And yes, it's an older building by the looks and I don't have the year it was built yet. I didn't know it's (generally) easier to submeter electric/gas over water; thanks for that.

As for rents, I've found that (so far) that there is little room to increase from the get go. Also as you said, the impact of passing utilities to tenants may have a negative repercussion as well.

@Wil Reichard, I've looked at only one apt. building as a comp so far; need to dig deeper. If I can't have some immediate value due to rent increase (waiting to hear when the last time they were raised), then I will certainly be less motivated to move forward. 

Looking for help analyzing this property. First off, I'm working to get a "feel" of the neighborhood and the structural fitness of the building and I'm not done with that yet. 

Any pointers on this analysis? Also, is $12k a sound starting point to estimate for the work to sub meter the utilities out?

What else should I consider?

=====================================

5-Unit Multifamily

mix of urban and suburban tenants

Purchase: $118,000

Repairs: $5,000 (Guessing)

Closing: $6,000 (Guessing)

ARV: 125,000 (Total guess; need help)

DP: $23,600

Loan Amount: $94,400

20 yr amort.

Interest: 5.8% (higher??)

P&I: $665.46

MONTHLY:

==========

Total Gross Rents: $4389

Monthly Expenses: $3583.05

Cashflow: $805.95

EXPENSES:

==========

(** Landlord pays utilities)

P&I: $665.46

Vacancy: $438.90 (10%)

Repairs: $131.67 (3%)

CapEx: $219.45 (5%)

Property Management: $438.90 (10%)

Insurance: $199.00 (2016 Actual)

Management: $438.90 (10%)

Property Taxes: $177.67 (2016 Actual)

** Electricity: $834.00 (2016 Actual)

** Water & Sewer: $165.00 (2016 Actual)

** Garbage: $83.00 (2016 Actual)

** Gas: $130.00(2016 Actual)

** Sewer: $100.00 (2016 Actual)

OTHER:

=========

2% rule: 3.40

DCR: 2.21

NOI: $17,656.96

Monthly cash flow: $805.95

Cash on Cash: 27.95%

What is your primary reason for choosing one over the other?