All Forum Posts by: Mark Douglas

I work about 60 hours per week in my career (automotive dealership management), 50-ish at the dealership. I have 5 units now and don't have a property manager. I have friends who own 30-50 units, one full-time investor and the other a banker. I would say that if you can take calls here and there and call someone to go over there, you need no management company. It won't even be stressful at all most of the time or take away from your primary career. I would highly recommend putting together a short list of 2 plumbers, 2 electricians and 2-3 handyman type guys that are reasonably priced and trustworthy so that you can have a couple options with each when things come up.

Hope this helps,

Roger

Right, so as long as I've got a few contacts I'm comfortable with sending out to the property, most of the general maintenance issues should be fairly hassle-free...? I definitely need to put a lot of trust in those contractors/handymen...

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Originally posted by @Owen Dashner:

Start asking around for referrals to plumbers, hvac contractors, and a good handyman. Start with one each, then try to get a backup person in case your first one isn't available when needed. Those 3 trades will take care of 90% of the maintenance issues you will have.

Then let your tenants know the best way to reach you during work hours (text, email, etc.). If you have an issue come up, just send your contractor a text that your tenant will be calling to coordinate a service call, and to send you the bill.

Other back office requests/issues can likely wait until it is convenient for you to handle.

I'm definitely shopping around for a few people! I can't wait till I have a "go-to" guy for plumbing, electric, hvac, roofing etc. :)

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Originally posted by @Colleen F.:

They may call you for things during business hours but you should not be running over for emergencies. Think about your own home. Do you leave work to fix most stuff? not usually. I would recommend a plumber and someone for the heating system that you can call quickly. Heat is the major one here. Know where your shut off valves are for water too and maybe mark them for the tenant. Also set expectations on response time. The house is on fire or they smell gas they should call the fire department or gas company. Other then that you should not expect to be answering calls real time for issues that are not emergencies.

And I can tell you from experience heat issues are going to be nighttime ones especially if you have working tenants . I sat and waited for the furnace repair guy until 2 am. one night. And we had a couple of other evening calls before we got to the root of the issue. I was still working in the morning but it had to be done. I don't however thing the PM would handle that.

That's a great point, marking the shut off valve for the tenants!

One thing I did, is get a Google voice number, so even though they're calling "me", they don't have my actual cell number.

When I think about my apt living, aside from the occassional major issues (AC goes out in the middle of summer!) the maintenance crew didn't always respond that same day... Not that I would prolong dealing with issues, but not every complaint is an emergency for sure.

Thanks !

1 Vote

Sarnen,

Absolutely, thanks! It seems a bit overwhelming, but I have to keep in mind that it's highly unlikely that a "major" problem will come up three or four days a week haha. Hopefully the day to day operations will be less dramatic than I'm imagining :)

Thanks so much !

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Looks like my 1st property will be an FHA owner-occ quadplex. I've heard time and time again that there's no need to hire out property management for this small multifamily.

What I'm unsure of is how I would handle problems that came up during the day, while I'm literally at work...?? I do have some flexibility, where I could step outside for a minute to make/take quick phone calls, but would that be enough?

I don't have a "team" or "systems" in place like they discuss on the podcasts, so I would be the tenants' only point of contact, at least in the beginning.

Anybody else care to share their real life beginner experiences with investing while working 10-12hr days? Pros? Cons?

Many thanks!

Mark Douglas

2 Votes

Wondering if there are any conventional lenders that only require 5 or 10% down ?

Any recommendations are much appreciated!

Mark Douglas

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Haha absolutely! Not the best way to get my feet wet. Honoring them is the safe way to go, and probably what I'll do since I'm in no particular rush (going owner occ on a quad)

I'll look around for some local real estate attorneys.

Thanks!

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I've heard different opinions on this....

Any lawyers out there? :)

Thanks

Mark

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From the MLS remarks: New flooring throughout Unit 1 2012, new flooring in kitchen and baths 2012, new HVAC unit 3 2012, new roof June 2011.

Not very much detail, but the roof and one hvac are recent. I'd still like to get some type of expense report from the owner, but it doesn't look like there are very good records..

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Originally posted by @Max James:

These are all numbers assuming you do not live in the building. Which is the main intent (for the long run) of the building. The other important aspect to consider is the insurance is going to increase by a large amount once you move out of the building. You will not be able to hold the same kind of insurance since the one you are getting, I'm assuming, will be for owner occupants. I would ask your insurance agent to run the numbers for once you move out of the building.

What does the BP world think? Are the above expense assumptions too much? Not enough?

I'd certainly rather overestimate the expenses.... Having said that , would this second scenario not cash flow for the first year while I'm in there?

I'm looking into different insurance polices... That's a good point though, to run the numbers with the "investment property" rates.

I feel good about the cash flow when all units are rented, still unsure about the immediate figures, but I'm working with my realtor to get some accurate data on the property.

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All Forum Posts by: Mark Douglas

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