All Forum Posts by: Matt S.

@Dave Foster, thanks as always. I’ll have to revisit the operating agreement (which we do have).

Hi All-

A few years ago I did my first 1031, selling a condo in Brooklyn and doing a 1031 exchange into a multi-family syndication in Atlanta. I purchased a Tenants in Common (TIC) interest alongside a syndicator (I own 5%, GP/LPs own 95%). I made the purchase through a single member LLC.

The GP reached out to me to relay they've negotiated the sale of the property with a tentative 2/15 closing. To achieve the highest price, the GP gave the buyer the option to buy partnership interests in our respective LLC's, rather than a transfer of real estate. I have a very high level understanding of what this means (could be beneficial for buyer from a tax perspective), but very little idea what this means and if there's anything I should be thinking about, negotiating, etc.

If anyone has any thoughts, comments, recommendations on who I could speak to about this it would be appreciated.

-Matt

I'm interested in a similar type of property. I have a upcoming sale that I'm looking to 1031 into something in Miami. @Jean-pierre Martinez did you get any info on this? Were you able to find a good realtor?

Thanks for the responses @Jeff Weaver and @Zach Kidd. Sounds like it might be worth looking into some other PMs.

If any investors have recommendations for property management in the area, let me know.

Hi All-

I bought my first out of state rental about a year ago. Being new to using property management, I'm not really sure if I'm receiving poor service from my property manager or if my expectations are unreasonable.

1. 1. The property has 3 units and brings in rent of $3200/month. I'm paying 10% PM fee. Does that seem reasonable? I know 10% is on the high end, but I'm not sure how many units (or monthly rent) you need to get to negotiate that down.
2. 2. Here's the latest listing: https://www.zillow.com/homedetails/5200-2nd-Ave-S-Saint-Petersburg-FL-33707/81407033_zpid/? . I'm based in NYC and used to seeing professional pictures. These look like iPhone pictures and not particularly flattering. However, they rented the place pretty quickly. Should I expect more from the listing? They had 1 applicant for this listing.
3. 3. We just found out 2 of the units are on the same electric meter. The PM received a quote for $3K to separate the 2 units and add a meter. I asked for a 2nd quote from another electrician because it was a significant expense. They've asked me to find a 2nd electrician to get a quote from. Seems strange I have to find an electrician - takes 30 seconds on yelp/google/home advisor.
4. 4. PM hired a lawn mowing company that was charging me $150/month. In a BP, I found out the going rate was $80-$100. After 4 months of me bugging them, they got a couple of quotes and switched to someone $90/month.
5. 5. In my agreement, it states they'll do an annual property review. I haven't received anything like this for any of the units.

So those are my gripes. On the positive side, they have filled the vacancies relatively quickly. Is this standard service? Or should I be looking for a new PM?

Any thoughts would be appreciated.

Matt

@Kenneth Hayes congrats! Self storage is a great investment. We don't look at CF per unit. At our facility, we have units that rent from $150-400+/month, so it varies significantly depending on the size and climate-controlled vs non-climate controlled. Like MF, I'd just focus on your over CoC return building in a reasonable vacancy rate for your area. If you really want it per unit, just divide the monthly cash flow by number of units.

@Tristan Wheelock Who did you end up using?

In my opinion, knowledge and experience is what keeps people in that asset class. If you've spent 5-7 assessing specific properties types in specific markets, you've become an expert in the area. You're able to identify opportunities and issues through the experience you've gained. Doing the due diligence on sponsors and comparing syndication deals is another skillset to develop. Not all sponsors are equal, just as not all SFH investors are equal. Another issue is whether a new syndication investor has access to the best sponsor/deals. I think there are lots of reason to stick with what you know (assuming its worked) and it might feel more passive that learning to assess syndication deals.

@Tristan Wheelock @Geoffrey Schnake How often are you guys mowing? 

@Lady Cerezo I'm a bit torn. I agree with the house hacking strategy if you can make it work, however, it's tough with NYC prices. Realistically, most of us are going to be investing out of state (or at least outside the city) and it might be worth learning that strategy off the bat. Just a thought.