All Forum Posts by: Megan Barron

@Geordy Rostad

Thank you for your reply. I did call the agent and he said I can bring in my paperwork and we can upload it onto his banks secure network.

I did check the fees associated with the rate and it is a great deal. It will be about $2,000 in lender fees plus escrow so around $4,500 total. I will be saving $190/month on my mortgage, or ~$170/month if I roll the closing costs into the loan.

Interest rates are looking very good right now. I found a really good rate of 3.375 for a 30 year fixed at Sterling Bank and Trust.

Has anyone ever worked with them before? I visited a location and it seemed very cheap and not set up very secure.

Also, when applying for the loan the loan agent wanted me to email all of my private information to him, which I did not do because I didn’t feel that was secure enough.

I have worked with other lenders in the past where they had a more secure way of obtaining private documents (uploading them).

I don’t want to miss out on the great rate but my gut just tells me this place is very behind the times and might not be very prompt.

Has anyone ever worked with them before?

Thank you

@Daniel Lynch

When I first moved in with my boyfriend, who is now my husband, he never asked me to pay for anything. However, of course I paid for things but I was never asked to.

@Dean Attali

Oh my word I am so sorry you are dealing with a tenant like that! When I was a renter I made sure to never bother my landlord because I never wanted my rent raised!

@Joseph Schreiber

I would be careful telling a public forum how much cash you have sitting liquid. Be careful.

Does anyone else agree with me or am I just paranoid?

@Blair Colsey

I’ve been looking out of state also. Even houses that cash flow nice once I factor in the 16% monthly property management fee (after leasing fee) I barely make any money. You have to look really hard for deals right now they aren’t easy to find.

@Jon Lanclos I WISH I could self manage the property but it is an out of state rental.

@Kenny Dahill

I don’t understand why the PM percentage should be calculated annually and not monthly.

I spoke to the property manager and they charge 8.33% monthly plus a leasing fee of first months rent which is 100% or calculated out at an extra 8.33% a month so total PM fee is 16.6%.

@Denise G.

@Kenny Dahill

Here are the calculations:

Purchase Price: 132,000

25% down payment: 33,000

Mortgage (P+I) , Taxes, Insurance: 711/mo

Monthly rent: 1,200 (could be anywhere from 1,200-1,300)

—————————————

8.33% vacancy rate

8% Maintenance 

5% Big ticket items

16.6% Monthly PM Fee

Total: 455.16 + 711= 1,166.16 

1,200 - 1,166.16 = 33.84

So I’d only be profiting 33.84 a month. Unless I charge 1,300 for rent but I like to be very conservative.

This is a B- SFH in a good growing town with excellent schools. Home was built in the 70s.

I would like to offer lower on the house but the owners purchased it one year ago for 125k.

When I am doing my calculations to see how a property may cash flow why do we only calculate the property management fee at 7-10% when in reality most property management companies charge a leasing fee of 75-100% of first months rent also?

Once I found out about the leasing fee the cash flow on the properties I have calculated out are absolutely terrible.

One property I calculated out after all general expenses I would cash flow $133/month. Then after finding out about the 100% first months rent leasing fee monthly profits plummet to $33/month. I’d make more putting my money in a CD.

So my question is why in general do we only use 7-10% for calculating monthly property management fees when in reality it is more like 16% per month?