All Forum Posts by: Nathan Adams

@Jim K. Thanks! That's a solid idea... It will make the building look bigger and even out the weird roofline. I have already inquired about making it an A-frame, but was WAAAAY too expensive.

@Thomas S. The building is currently "the worst building in a nicer neighborhood" -- You can't see it, but there's a significant amount of wood rot, etc. I do need to do some repairing to the exterior to make it livable and up to code. My questions were if there were simple things (other than paint or expensive siding) that could be done. This is my second building and I definitely do not put unnecessary money into a situation that does not pay dividends... Hence my question. Market rent for this building is $650-$725. With no curb appeal (compared to surrounding properties), the 2/1's are $650 max. If there's a simple way to get the curb appeal up, I can ask $700-$725. 

@Mike Cumbie Paint is something I'm definitely going to do this spring, just wondering if there was something simple I'm not seeing...Or don't know about. Thanks for the suggestion!

I'm closing on a great, cash flowing 5 Plex, and I'm going to be Brrrr-ing. I wanted to ask some more experienced landlords -- What can I do (as cost effectively as possible) to help make the exterior of the building look more inviting and modern without overspending? Small town rents, so when building is done, total rent for building will be $3k/mo. Or do I just leave it as is? Apts will still rent, could possibly get another $25-50/unit if exterior is better. Thank you in advance for your input.

I have one tenant that pays late every month, two installments. Tenant increased their own rent $50/Month to compensate for late fee... I get an extra $600/year and the tenant has never missed a month, never complains and is a great tenant IMO. The unit is already at max market rent. If the tenant goes...I lose money. I make at least an extra $1000/year in late fees from tenants. My PM and I are both happy with that. Turning over an apartment, painting, screening and vacancy cost WAY more time and ultimately money. If the tenant is a model tenant and it never goes into the next month, I'd keep them.

Thanks @Zachary Foust -- I didn't budget in for vacancy. Good idea on adding that in. This property is a long term play for me and ownership after 15 years is my goal with this one. Thanks so much for the insight!! Much appreciated!!

I'm purchasing a 5-plex in Montana. I do not live in the town and a value add for me is a handyman childhood friend is willing to managing property for 10% of rents. Plus the most successful realtor in the town is also a friend, so I feel safe about all information they are providing.

Property Info:

5 total units: 4 - 2BD/1BR's and 1 - Owner's unit 1BD/1BR w/ a loft and garage. Total rents currently bring in $2900/Month. Laundry brings in another $100. All units have separate meters -- Tenants pay water, electric, ect. 

Loan Info:

Owner is carrying note for $285,000 and I'm putting 50K down. 15 year loan @ 4.35% -- W/Tax, ins, ect -- my payment is @ $2150/MO.

The 2 BD/1BR's rent for $600 for upper and $500 for lower (although they are the exact same layouts). I have been told by a realtor/family friend that I can safely get $650-700/MO for all units. 

The tenants are all long term and there is no rent control in the Montana. Do I risk risk losing them and raising the rents? Or keep things status quo?

Also, is the interest rate fair? And am I missing anything in this investment?

Thanks in advance for your input!

I am planning on rehabbing and living in the property for 1-2 years then moving on. The property is a short sale and looks like there are lots of interested investors... So I'm not sure there's much meat left on the bone at this point.

I'm looking for some advice about a live in flip located in the Highland Park area of Los Angeles. I found a great home that we are considering purchasing. We need to make a cash offer this week and I'd love to get some answers from someone who's done this before and make sure I'm not making newbie mistakes... THANKS in advance if you have any advice. If possible, I'd love to find someone willing to have a phone who has experience in the LA area.