Hello,
I wanted feedback on a deal I am working on in the Syracuse, NY area. It's a nice neighborhood and close to amenities.I have an offer accepted on a 6-unit apartment building, which includes 5 1-bedroom apartments and 1 2-bedroom apartment. The rents are near market rate except for the fact that the rents include utilities.
I had to go private money because the seller wants to move quickly. Here are the numbers:
I found a company, Livable (http://www.livable.com/), that will implement Ratio Utility Billing Services (RUBS) on this small of a building for $5 per unit/per month if I collect the money or $10 per unit/month if they handle the billing. Has anyone had experience with this company? So far they have been very helpful, which is giving me a some comfort. Also, has anyone had problems collecting the bill back money from their tenants? I am a bit nervous because some people, particularly in this area, seem to lack the ability to pay bills electronically.
Alternatively, I could have my management company handle collections so it is all centralized. Do any property management companies handle this for their clients and if so, what is the extra burden? Although I'd rather have my property management company handle the collection but I do not want to throw a monkey wrench into their operations.
Finally, here are the numbers post-refinance:
Any feedback or questions would be appreciated.