All Forum Posts by: Mark F.

Have had one for about 3 years. I purchased a mortgage note first then invested in a mortgage note fund, which coincidentally the fund operator has posted in this thread. When the fund redeems, I plan on purchasing more mortgage note(s). Biggest problem is putting that $7k contribution limit to work. That’s why a fund has made sense so far. 

Sunny! Nice man congrats, not surprised you took the DRP in your situation. I'm at about 75% where you're at on gross rents and property values. Unfortunately I'm not clearing as much as my PITI is 40% higher than yours. Trying to buy another multi this year which would get us that much closer though. You had a 5 year head start on me which helps. Great to see your numbers and wish you the best of luck. Let me know if you need anything.

We had to offer $150k over asking on a SFR non rental and the appraisal came back at offer price so no, it is not a buyer's market where I live.

This is after almost a year of offering on houses and losing. Finally realized my realtor was not fully grasping the market and how competitive it was.  

Since I’m your target demographic I’m going to say probably no, I wouldn’t use it. Why?

For one, the software I use is free. I don’t care that they collect data from me as it’s automated 99% of my rent collections and late fees. Two, I’ve never had any major issues with the software. It has other features I just choose not to use. One tenant had an issue at first but it was worked out quickly. I’ve been using this software for about 4 years with about 10 different tenants so sample size is decent. 

This may be part of later versions, but it’s nice to upload leases to their portal just in case and I adjust rents when needed via their website since they don’t have an app. Maybe if I was starting out and this was offered I’d try it but I wouldn’t go from what I have now to your platform more than likely. A dedicated google voice number that has a local area code is what I use. 

Edit- rereading your initial post, I assume your platform would have an app or a website that the property manager/owner would use and the tenant only uses texts? That is interesting and I think could gain traction. Personally I feel as an owner I’d have to have an app or website but makes sense for a tenant to use text only. 

I’m taking the opposite side and say no compensation should be given. It’s a structure with 4 walls, a roof and a floor with mechanicals all around. Things will break, leak and get damaged. You said you promptly fix the issues when they were brought to your attention so you took reasonable actions. Are these things you could have reasonably prevented? Doesn’t sound like it.  Did they cause damage to their stuff? Same answer as above.

If a tenant doesn’t understand things break and will require fixing now and again, they need to move into a brand new build. You said you’re having them move out at the end of their lease, would they not expect things to break in their next place? 

I’ve had countless maintenance and repair requests over the years. I address promptly and move on. 

No credit should be given. 

Great post Alan. Reminds me of that one guy who posted his cost breakdown on a crap rehab and everyone blasted him. Yours is way more realistic. I had to redo a bathroom last year in a 2/1 in an occupied duplex I own and I spent $6,004 in labor and materials (10% off at HD/Lowes as a veteran, just didn’t do flooring and left the old vanity, doesn’t include the damage the leak did in the lower unit). I also have a personal relationship with my contractor so got a massive price break. Similar situation where I was forced to update while it was occupied.

However I know once I have to update the entire unit, I’ll be spending quite a bit as the kitchen is outdated and the place needs paint and either new LVP put down or sand and stain the existing hardwood. 

One of my tenants does this but in a non creepy/annoying way. They’re making sure they are aware of anything bad happening or issues they need to be aware of. I get where some people could do it in an odd way that throws off red flags. But I’d say if you check the spaces and everything passes the smell test, should be fine. Unless they are cooking meth in a room they don’t want you to see or find the body in the freezer. 

I've separated out electricity but not water (never heard of sewer being separated) and I've always had separate gas meters on my properties but have separated the heating system on one. You would contact an electrician plus the power company to separate electricity. Water you could have a plumber do it or do it yourself if you do the sub-meter route. I would have a plumber do the gas if you have that in your area. 

The heating system, while straightforward, wasn't cheap for my 3 unit and will have a longer payback period. I don't remember exactly but it was around $10k total for labor and the 2 new boilers. I got a deal on labor as I know the contractor personally and helped out a bit with the project. Worth it still as now I don't have gas bills to contend with for heat which I would say was around $1k a year. I know that is a long pay back period but don't plan on selling anytime soon, plus you never know what nat gas prices will do. I believe it'll help with eventual resale of the property as well. The water heaters were already separated. 

It cost me $8500 in my HCOL to get the electric separated on a 3 unit. This was labor and parts and I know the electrician personally so it would have cost more going through someone else. For that I also had to deal with the power company. The electrician got the 4 gang meter pan installed and went through all the fuses and whatnot to divvy out and installed separate panels for each unit. The power company supplied and installed the new meters (at no charge, at least not yet) and verified all the work around the 4 gang meter pan was done up to their standards. I also had to get it approved by the city which was pretty easy. 

This was a no-brainer and has a payback of about 3 or so years (probably less with how my tenants use the AC in the summer) plus again, it'll help sell the property down the road.

I really wanted to separate the water as I found a few good sub-meter companies but the water lines go every which way and make it impossible to attach a meter to one. In theory I could attach one to each water heater since they are separated out, but I'm not sure if it's worth the hassle. 

It's a scam. There's a key word and a phrase that makes it 100% a scam. Learn to spot these and it'll help you immensely in your real estate career. Been in law enforcement for some time and while they do evolve over time, they will keep the same red flags in for long enough for people to figure them out and spot them.