All Forum Posts by: Andy N.

I am in Key West on short vacation. Got a 10 pm text that 2 units are flooding in my 48 unit complex. I contemplated self managing when I purchased this property. Thank goodness I went with a property manager! Plumber got the water off and is going back tomorrow to fix it. Nothing I could have done had I been in town other and been in the middle of the drama. Thank goodness for property management!

I am in a community that does not have a lot of property managers. The property has rents well below market and it's going to take some work to get them up to where they need to be. I am ok with the 8%. Only had one other local pm interested in taking it on.

I have a 48 unit that I just switched to a property manager. I am being charged 8% of gross rents as a management fee. This is a new property to me and I've been using the manager for about two months. I was driving down the road today thinking about something and wanted some opinions. The whole property is on the same water meter. The water is included in the rent. The bill this month was $2200. So my management fee included $176 (8% of my water bill). I am wondering is the customary ? I never thought of it ahead of time.

Where are you able to get 30 year fixed on a rental? What are the closing cost running? I can't find anyone local to do that. I am getting 5% fixed for 10 years with up to a 25 year am with a local bank.

@Jarrod Cavinder Welcome aboard!

I appreciate the feedback. If I did grey walls with white ceilings a trim, would off white cabinets be best? I have original cabinets. They are DARK.  I am thinking about painting them and adding stainless pulls.

I am looking to start repainting some units in my complex as they come vacant.  All of the walls and ceilings are WHITE.  What color schemes look the best? I am thinking white ceilings and doors and possible a beige or grey on the walls.  Any thoughts or ideas?

Welcome. I'm from Hopkinsville.

@Paul W. A value add deal is a deal that the buyer feels he or she can add value to the property.  This is a value add to me because the rents are well below market.  I can raise rents  to add value.   Any rent increase for me will be profit. If I raise them $25 a month x 48 units = $14,400.  At a .09 Cap that's $160,000 in value added to the property.  The addition income without addition expenses adds value to the property. 

I also feel like I can lower many expenses on this property.  An expenses I lower will go straight to the cash flow.  This adds great value. 

These things add directly to profit.  The more the property makes the more it is worth.

Hope this helps.

Andy

@Arianne L.  Current rents average $375.  Its a mix of 1,2 and 3 bed 1 bath units.  Its located in Kentucky.  The units are in good condition.  They are somewhat dated.  Most have original cabinets and counter tops.  I feel that I can get it up to a $500 average without doing any work to the units.  I do plan to update some units as they come open and shoot for higher rents. 

My challenge is to now raise the rents without losing a bunch of tenants.  I plan to raise them $25-$35 the 1st of the year.