All Forum Posts by: Jim Norton

Hello all,

Does anyone know a general range for cost to replace a boiler and a chiller system on a 20 unit apartment building? Alternatively, does anyone have a recommendation for a company who does commercial boiler and chiller work?

Thank you!

Hey Rob, who did you hire to do the elevation certificate? I am in need of a couple myself.

Hey Rob, if you have a recommendation, could you share with me as well? I am vetting companies now to take over about 75 units in Louisville.

Hey Brad, yes, I am an active investor in Louisville, Shepherdsville and the surrounding towns. Shoot me a message or invitation to connect if you’d like to chat more!

@Joe Hines

Thanks, Joe. These are certainly good due diligence questions, some of which I have asked but others that I need to. Thanks for sharing!

Hello all,

Does anyone know how to properly value a property management company? I am considering buying one that has been presented to me. How do I come up with an appropriate offer? What is some of the due diligence that I should do? The company makes roughly 320k in annual management fees, and about 116k in broker/sales commissions from the small brokerage business attached to the management company. Pre-tax income of the two divisions is about 123k, and after tax income is about 84k. If I want a 15 CAP, 84k/.15=560k purchase price. The company has no debt, and manages a portfolio of 250 residential units.

Any thoughts?

Jim

Ryan Groene why did you say above that those valuation metrics do not apply to parks in FL? I am considering buying a park in Southwest FL. Any advice regarding what I should look for or consider out of the ordinary would be much appreciated. One obvious concern of mine is hurricanes, and I’m not sure if I should avoid MHPs in FL for this reason alone.

Hello everyone,

I am considering the purchase of a 12 unit apartment building in Shepherdsville. The building is not submetered for water. Does anyone know someone who could do this for me or give me more info about the process? This building is near apartment complexes that are all submetered so I have a value add play if I am able to submeter and shift this cost to the tenants.

Also, does anyone know any property managers in Shepherdsville or managers who specialize in the south end of Louisville and area heading toward Shepherdsville.

Finally, what is everyone's opinion on investing in Shepherdsville. I am from Louisville, but have not spent much time in Shepherdsville.

Thanks much!

Jim 

Does anyone know if it is possible to renegotiate a lease prior to purchase, or make an offer contingent upon changing a lease? I am about to make an offer on a duplex with one unit that is rented $100 below market. This tenant is locked in on his lease until August 2018. Thanks for any advice provided! Jim

Hi all,

I own a duplex in Lehigh Acres, Florida that is in need of 2 new HVAC systems (indoor and outdoor units - air handler in the attic). One unit also needs all new duct work (6 drop changes). Can anyone give a ball park estimate of what a reasonable price may be to complete this work? Also, what brand should I put in these units (I want reliable and long life with low maintenance. Does not have to be extremely efficient because tenant pays utilities). I have been quoted about $13,000 for 2 new 2 ton Trane systems , new duct work with 6 drops in one unit, and UV lights to line the ducts for mold prevention. 

Thanks for your advice!