All Forum Posts by: Michelle Marty

@Richard Biechler First and foremost Congratations! How much liquid capital would one need to acquire that much in a year? I also started my real estate passion in my 20's. I started with a 4 plex that I lived in and then rented out 3 of the units. I was 23 (now 35) and to date that's been my biggest sucesss since then I've found most bank lenders want 20-25% down which is a lot in my area so aside from the one 4 plex all my rentals are single family. Is there a way to buy up that much property without a massive savings account or does the old adage of it takes money to make money come in to play on large deals like these? 

I do think they do a nice job but some of their fees are high for the area (middle TN) their competitors charge 8% of rents for 4 or more units and no premium for repairs but they keep the full first month rent as a leasing fee (in my case $1,000 for the multi family and $1800 for single)  but I don't have a relationship with them. So I agree it's hard to know how much value to place on an existing relationship. 

A little back story: I have 5 units (one multi-family, one single family) out of state. I have a local PM to handle the day to day. I know the owner of the company through various networking affiliations and when he decided to start his pm company he called to ask for my business. There were some bumps in the road but I liked the guy and appreciated his vision so I stuck with him. Now 5 years later he is more established and has a good business going. For the last two years he has upped his fees to the point it seems to boarder excessive so to those of you that use a pm, what do you pay? Here is a run down of my fees: 10% of rents, $350 leasing fee, 50% of any deposits kept including non refundable pet deposits, 100% of any fees charged to the tenant (application fee, etc) $50 renewal fee and 10% of any repair. The leasing fee went up, the renewal fee is new as is the repair fee. Thoughts?

I have a 4 unit building that has had a vacant unit since June 1st. It's being managed by a property management company. I call about once a week to check in with the empty unit and every week it's the same. They've had viewings but no takers. I've lowered the price twice. It is now the lowest priced 2 bedroom in that city. It has fresh paint and new appliances. But could use new carpet. At first the manager said to leave it because it had life left and its free of stains and tears, but its certainly not new. now she's saying to replace it and blaming the carpet solely on the extended vacancy. Do you think the carpet could be the problem or is it time to give the property manager the boot?

I have a 4 unit building that has had a vacant unit since June 1st. It's being managed by a property management company. I call about once a week to check in with the empty unit and every week it's the same. They've had viewings but no takers. I've lowered the price twice. It is now the lowest priced 2 bedroom in that city. It has fresh paint and new appliances. But could use new carpet. At first the manager said to leave it because it had life left and its free of stains and tears, but its certainly not new. now she's saying to replace it and blaming the carpet solely on the extended vacancy. Do you think the carpet could be the problem or is it time to give the property manager the boot?

It has been my experience that that nicer the house the longer the tenant wants to stay. I have a house currently rented for $2,200 the guy has been in for 2 years and asked to stay another 2. I have one for $1,300 a month that seems to turn over year to 1.5 years and then townhouses that rent for $600 that turn over often. It seems like I always have a vacancy in one of the townhouses. The single families rent immediately.

Yes, even the tenant I put in there didn't pay. He met my screening but still is a dud. The building isn't in a bad area. It's not the best in town but not the worst either. The problem with the rents for this particular building is its located next to a military post. When the soldiers are deployed (they're coming back now) the demand is way down when they're home it's way up. The quality of the tenant pool reflects how long the soldiers have been gone since the town is kind of dependent on them. I did go after the tenant that did the damage but she's a single mom that makes very little. It's unlikely I'll get anything.

They are paying slightly lower than fair market and have been there for years. I did evict one of them and when she left she flushed little army men down the toilet then used it and shoved femine products way down in the sink. She wrote on the walls with sharpie and did something to the carpet. It cost $2,300 to repair the plumbing. When the new guy (that I screened) moved in his new neighbor told him I didn't take care of the place. these tenants seem to feel justified in not paying rent if not all of their demands for repairs/issues have been met. It seems all pf you are saying kick them out and it seems thats what i need to do. I know they need to go and in the long run its for the best but after my plumbing bill I'm nervous to see what they do. Thank you for all of your replies.

Are you worried the landlord numbers arent legit? I'd run the eviction report. That usually provides past addresses and if its a complex you can call them. They'll probably ask for a signed waiver from the tenant allowing them to disclose information so add that to your application. As of right now I wouldn't rent to them.

I have a 4 unit building that has been a huge headache. I purchased it from a couple that were burnt out on landlording and sold at a loss to get out of it. I now see why.! I have more trouble with this building than all of my other units combined. Most of the tenants I inherited. They're terrible. They complain about everything. Toward the end of April I would get 2 phone calls a day from people complaining about little things. One tenant called to say the lawn care people left a weed growing by her door. It took her more time to call and complain than it would have to bend down and pull it. Another complained people were parking in "her space" (there are no assigned spaces) another called to say she needed new weather stripping on the front door. Then May rolls around and it's quiet...because no one has paid rent. In a building of 4 not one single rent payment. Eviction notices went out and I'm sure once people pay up complaints will start rolling in. These tenants have been spoiled by lackadasical landlords. Do you have any tips on how to train these people and avoid getting burnt out with this building? The building should be a great investment but so far it just isn't.