All Forum Posts by: Lindsey Clark

@Bradley Sriro just seeing your reply. That is a great suggestion. 

I just want to update on how this situation was resolved in case anyone deals with this in the future. Around tax time the realtor contacted me and asked for the balance of her fee. Like I mentioned earlier, she collected 1 month of rent but her fee was 10% of the annual rent so there was a small balance remaining. I explained to her that I noticed there was an annual fee for the broker each time I renew my tenants lease and that I do not agree with it. She said she would speak to the broker and have the fee waved and she did. After getting it in writing I went ahead and sent the agent the balance of the commission. 

@Michael K Gallagher sure that would be great! I’ll message you to get that info. 

@Ozzy Smith Thanks for the advice. The property has central heat but no a/c. That is one of the places I am thinking I would be able to add value to the property. I’ll keep your advice in mind about property management. My husband and I manage our investment condo on our own but that is local so it is likely I will end up using a PM eventually. I should probably check my numbers as if I was using one just in case it goes that way. 

@Zeke Liston it is in Kettering.

Hi @Ryan Mainwaring. Thanks for the well wishes and for taking time to reply to my post. My goal is to cash flow at least $100 per door and to meet the 1% rule. From the numbers I am getting it seems to check off both of those boxes. I didn’t mention that this was a property built in 1944. Are there any typical concerns for properties that old in the Ohio area? I’m sure there will be some surprises along the way but trying to anticipate as many expenses as I can. 

@Anthony McEvoy No immediate maintenance needed. I am finding out if there is any maintenance coming up. The property was purchased 2 years ago at $150,000! Smart investor clearly. She did quite a bit of updating. Plus with the market the way it is, that could justify the price. Bathrooms, painting, some flooring and the roof were done. This is an off market deal. My realtor says if the property were to be listed it may sell for $270,000. I plan to manage the property myself. 

*This link comes directly from our calculators, based on information input by the member who posted.

Purchase price: $250,000. Putting 25% down amortized for 30 years. Fourplex, all 2 bed 1 bath units.Three units renting at $750 and one at $600/ month.

$2,850.00MONTHLY INCOME$2,231.01MONTHLY EXPENSES$618.99MONTHLY CASHFLOW6.77%PRO FORMA CAP RATE$16,914.00NOI3 monthsTIME TO REFINANCE10.83%CASH ON CASH ROI6.77%PURCHASE CAP RATE
View report for more details. 

Hi everyone! This will be my first multifamily deal as well as my first out of state deal. Found this one off market through my realtor. Located in Ohio in a desirable B class neighborhood. I plan to add value and increase rents. Anything else I should be taking into consideration? I appreciate any input.

Thank you everyone for your replies! They were very helpful. I will go the month to month route once the lease expires. Seems like the best bet. 

@Wendell Fong thanks for your reply. It is the commission I agreed to pay. So 10% of the value of the lease. It comes out to more than 1 months rent. I am happy with the tenant but am unhappy with the fees and the whole process of using a realtor. I definitely will not be using one again. 

@Darius Ogloza For up to 5 years

@Theresa Harris yes when I realized what I signed over to them I realized I made a mistake. I looked up these types of terms online and apparently they do exist. If I wasn't in such a rush to get things started I would have caught that fee and asked for it to be removed. Not sure if it makes any difference but it is through Coldwell banker. They are a big company so I would imagine if it is in their lease it is legal. 

@Henry Lazerow thanks for the tip. 

@Adam Martin the realtor used a standard lease they use through Coldwell banker with a few clauses I asked her to add in. Hmmm, that is a good point about the month to month. I would have to make sure the tenant is ok with it of course. I will keep that in mind. Thank you. 

The problem is that the broker is not managing my property. I manage my own property. The realtor under this broker helped me find a tenant, and that is the extent of my relationship with the realtor and broker. I am paying the commision for their service which is fine. However, next year if I decide to renew the lease with this tenant, all while managing my own property, I will be required to pay the broker 5% of the lease amount which is more than $900. I most likely wouldn't renew with these tenants if this agreement is in place. The tenants seem like they will be quality tenants and they have already expressed that they would like to live in my condo for at least a couple of years. I would feel bad having to end their lease after 1 year because of this so I am trying to figure out if there is a way to avoid it. Maybe I can transfer the property into an LLC and renew the lease under the LLC? or some other loophole. I have definitely learned that I need to slow down and read the contract carefully.