All Forum Posts by: Nathan Zierer

Congrats on finishing, those last few steps are always the hardest - the energy really seems to get zapped out of you.  Can I ask what town?

I check both, here's the short and simple. If you put in $100 into a deal and it it has a 20% CoC that sound great, but that would only be $20. but for owning a property and only make $20 after everything is calculated - was that $20 really worth your time - even if you put in only 4hrs that month - that's equivalent to make $5/hr.

I look for 8%+ CoC. And at least $200 on a single family, $100 per door on a multi family and those two combined will usually set the low end for me. (I think I got this from Brandon Turner). Now I have made offers on properties that were 6% but cash flowed $225 per door on a multi-family just because I am in the early stages of my investing and I like the cash flow numbers.

@Megan Greathouse I can't find the link to tonights happy hour, are you still doing it?

@Paul Lee, I wouldn't go so far as 20% unless there is a lot of deferred maintenance but a combined 5% for general repair and 10% for capex would be advisable.  Other things to look at are appliances - will they need to be replaced in the near future.  I suggest that if you have washer dryer hook ups, have your tenant supply the those.  They tend to be the most finnicky with the variable of if the tenant knows how to maintain them, make sure to have your exhaust cleaned after every tenant move out because tenant do tend to clean out their lint filters regularly from my experience (this will prevent lint fires). 

Congratulations on your first deal!

For the overhead wires, see what ones are in use and which aren't then call those providers to get them off of your house.  I just told mine that I would leave them coiled up at the alley and the came about 2 weeks later and took theirs off the building.  If they are power, you can get a quote to have them buried (it runs me about $70/LnFt on private property and $150/LnFt on public property - St. Louis, MO)

The columns should be beefed up aesthetically, just add some 3/4" trim boards to the outside then another set to frame them out further increasing them from 3.5" square to 6.5" square (see the attached image). Add a faux set of railing from the main posts to the sidewalk edge to give it more of a front porch look on the first floor, this will also help to obscure the recycling bins.  I would cut the newel post caps off and either slant cut the tops on 45 degree angles on four side with a flat spot or get a faux copper cap. Paint the whole thing white. Use as much PVC trim as possible to reduce maintenance. 

Take the turf off and power wash and possible light grid the concrete to get rid of the carpet glue look and that's it - keep it simple and no/low maintenance. 

Even if you built a place for the the recycling bins, I think human tendency would be to move them back near the door for convenience. 

Update the screen door and fix the patio door screen and that will make it look cared for. 

Hope this helps, look forward to seeing the after pictures. 

I like the form and efficiency of space overall for its size.  Seems a bit out of proportion to the existing house on the site.  

Is there not a way to get from the south garage to the stairs for its corresponding unit?  I would think you would want to stay inside once you parked your car. 

Being as tight as the garages are, I would suggest impact or abrasion resistant drywall or even better yet 4' high FRP panel to protect. I know you can get this in the subway tile look as well so it doesn't seem so industrial/kitchen like. 

The western units second floor seems to have a lot of circulation space/hall way that won't be usable for anything else.  This is most notably between the island/stair and and dining area. Maybe consider putting the stairs to that unit in the southwest corner with an odd shaped landing/switch back and pushing your powder room/laundry to the west and then shoving your kitchen against the north wall. This will wreak havoc on the second floor but could make your second floor more functional.  The furniture show doesn't allow any wall way around it as its shown now anyway. (see attached image - sorry its not the greatest).  Also, don't put in area specific lighting like a chandelier. Can lights will work fine, and some one could use the dining space as a home office area instead. 

I would closely at the drive approach from the street to the south garage bay, that will be an awkward s-bend turn that may take a few tries.  Look at moving the driveway entrance down further to the south for a more straight on approach. 

Small things since you have the chance to do it right the first time: solid doors instead of hollow core, antimicrobial paint in the bathrooms, double stud walls with insulation between units (sound is the new asbestos in multi-family), 5/8" drywall throughout (and something special/strong in the garage - see above), if ceiling light/fan combos - get the switch with the controls in it so the tenant is pulling on the fixtures chains and no remote to loose. 

Hey Dana,

I have two simple mistakes that I will look out for in future:

1. I had a roof leak that took a while to find because it was coming from a plumbing stack roof penetration much higher on the roof.  From now on I check, and typically seal the plumbing boots even if they look ok. 

2. Install a bath fan directly tied to the vanity light switch. Tenants thought it was too loud so they never turned it on and mold started growing at the ceiling corners. Now I put the bath fan directly wired to the vanity light so it comes on no matter what and I double down by paint the the bathroom with a semi-gloss paint with antimicrobial additive to keep mold from ever growing - haven't had a problem since. 

One last side note; a little gutter maintenance can save thousands of dollars in the long run.  Learned that from a friend of mine the heart aches he went through.

@Derek Burkard I went to school at Drury University and since moved up to St. Louis. I have been thinking about investing back down there in the multi-family realm. It would be great to hear what is moving and shaking again down in that area - heard that the down town square is completely different and the commercial street is thriving. 

Congratulations! Sounds like a nice passive setup too. I am not an agent but I have heard of agents using their commission to as part of the price negotiations when its for themselves - did you work that into the deal at all? or did you keep the commission for cash in hand?

Congratulations on turning it from fix and flip to buy and hold.  That is a great looking house and the cash flow is amazing too! I really appreciate that craftsman bungalow architecture.