All Forum Posts by: Matt Heaton

@Justin B. Very cool!👍 keep going and good luck!

@Justin B. Will Do! Do you have multi family doors in NJ or elsewhere? If so how many and how long have you been in this game?

@Justin B. The problem is they are $300 lower than what they should be. That’s a huge increase. I know I can fill it with tenants that will pay if they leave. I do t want them to leave but I’m also not in business to leave money on the table. I do appreciate your thoughts on mentioning taxes, insurance, etc... thank you for your feedback.

@Mike McCarthy These units are all in great shape and the previous owners just didn’t want to raise rents because he felt bad and was loyal. I get that and appreciate that. However, I’m in business to make money as well as take care of my tenants. My approach is as follows:

Current rents are at $625-$650. The market affords $900. If they stay, I offer them a discount of $850 and tier it over two months. Sept 1 is $725 and Oct 1 is $850. That is if they will sign a one year lease. I have one empty unit and a renter moving in on Aug 1 paying the $900. That was not hard to find so I don’t have any question about the rent rates. I know the increase is large, but I feel like this will be a telling moment for them. Let me know your thoughts. Thanks!

@Kyle J. Thank you Kyle! This helps a ton!

@Arya Jackson Thank you so much for that advice. I will be looking into this today! I appreciate your feedback! Where are you located and what state are your units in?

@Jennifer T. Thank you for your example. This situation is quite different but your experience gives me a lot things to think about.

The previous owner was very loyal to his tenants and didn’t want to raise rents for whatever reason. He owned the property for 18yrs and never once raised the rents. However, three of the units are fully remodeled with new paint, carpet, laminent, and granite. All units have fairly new toilets and sinks, water heaters, new roof, and he recently replaced the driveway. He has take. Really good care of the property which I fully understand is a blessing for me. Let me know what you think of this.

-Drop a welcome letter on their doorstep today introducing myself and my partner letting them know we will be by a specific date and time next week to meet in person.

-Meet in person, get to know them, discuss their needs/concerns, explain rental increases.

-They are all paying from $625 to $650. Right now the market affords $900 for those units and they are all in great shape. Offer the tenant to stay and get a discount of $50 @ $850 for one year. Tier their rent on Sept 1 to $725 and then to $850 on Oct 1.

-If renters decide to leave, new paint, carpet, lamiment, granite in the units that need some updating.

-If they stay, can I still do these things or do I have to wait till they’re out? I’d like to offer it to them as a “bonus” if they do stay. I would hope they would t turn down new paint and carpet, etc.

Thoughts?

I have just partnered on a 6Plex and would love to get advice from anyone willing to give. We are local to the property and the last landlord has been managing it himself and says the tenants are very low maintenance. We would like to try this and will be prepared to bring in a property manager if needed.

First off I can’t find the documents specific to each state anywhere on BP. Anyone know where I can buy a lease agreement specific to the state of Utah?

How would you approach tenants with a rent increase right off the bat? They haven’t had an increase in 15yrs!!! They’re way below market average.

What should I watch out for and be prepared for? Any and all advice is appreciated! Thank you!!

I am new to the multi-family rental world. I am looking at a property in a small market. It’s a duplex currently being rented half long term and half short term. The garage has been converted to a game room for the short term side. The current owner poured a pad behind the garage to add onto it but never went vertical. I would like to hear any advice on this as to things I may not be considering. Here is what I want to do.

-Buy

-Renovate the short term side by walking off the garage

-Go vertical on the pad behind the garage and tie it in to create one unit which will end up being 1350sqft.

-Add walls to creat 3 beds

-Add two baths

-Add a kitchen

-Add HVAC to the unit

This property also has 1/2 acre behind it that I can add another multi family unit (3 or 4 plex).

What CAP rate should I be seeking?

What should I be considering from a legal and zoning standpoint?

How would you finance this?

Thanks!

Matt