All Forum Posts by: Nik S.

Hello! I am in a similar dilemma and made a post about it. My PM company charges $37 p/h for in house labor. I thought that it was high!! Now I feel a little more justified. Send me a direct message, we'll chat!

@Joe Fairless

Thanks for the great response! I have a property management company in place it's just deciding whether to utilize their team as opposed to one I hire. I don't go to the property as much anymore since it's much more stable now (92% occupied). I get tenant maintenance emails from my PM, then I forward them to the current contractor. It gets confusing on the money part as I have no idea what is fair or not. 

By utilizing my current management companies maintenance team, I don't have to worry about too much repair wise, I just look at the bills online :-) I guess the whole $37 an hour thing is no fun bc they factor in time for materials and labor etc so it adds up.

I totally agree with you though Joe, I run another  business daily so it's better for me to stay focused on my bread & butter and let the PM company handle the issues. 

Hi fellow BP's...I know I can always count on you guys for solid, honest advice from you experienced investors!

Here's my current dilemma. I own a set of apartment unit buildings (which are 1 hr away from me), totaling in about 50 units. Units are in pretty good shape but as you know issues always come up. Mostly smaller issues such as AC unit swaps, replacing faucets, rebuilding guts in toilets, change GFCI's etc.....common maintenance but at times bigger projects do arise. I have owned these particular units for almost a year and the maintenance has slowed down but issues still come up.

My current Property Management company has an on-call maintenance staff that charges at a rate of $37 per hour. So if a toilet seat needs replaced, I get billed $37 + $10 for the part. If a tenant has a plumbing issue, I can save a little money than calling a yellow page plumber. When a tenant moves out, the hours add up quickly..

For a while I had a guy who worked with me locally and would send him on the job (gave him long lists to do), eventually it was taking away from my local operations so I had to take him off the job and keep him local for the other projects.

I found a "contractor" who took on the jobs...He won't give me a set hourly rate and we kind of go back and forth over pricing. It's TERRIBLE as I am not sure exactly if he prices are fair or not. We finally hit a wall where we aren't agreeing so I need to work otherwise. By meaning using an outside contractor, my workload increases. I get work orders from my property manager and then I forward them to the "contractor". Then me and him go back and forth. Despite paying him cash and not having accountability (tax benefits), I am losing out but for a while I thought i was saving money by using him. His prices are OK but I am basically adding more work to my plate. Another thing with the current guy im using is that he has other people working for him and he claim 

What do you guys suggest?

1.) Use Property Management companies maintenance staff and be essentially worry free as I don't have to be involved nearly as much. (they do not do larger projects such as dry wall repair so my PM calls a set of vendors she uses and they bid out the project and then she charges me 7% of the total job cost due to her efforts in arranging bids etc....ie; job is $600, she charges $42..well worth it for me NOT to have to make the calls and meet people at the property etc)

2.) Look for someone who can live in a unit and in compensation do the maintenance for the apartments (I know there are pro's and con's with this)

3.) Figure out a spreadsheet of certain repairs and pricing so both the contractor and I have a clear understanding when repairs are needed. Example, when a faucet needs replaced, have a set cost. 

4.) Figure out a flat hourly rate for the contractor and take it from there (trust has to be there as well). The contractor will not agree on hourly rate..Makes me wonder.

If anyone has any suggestions on how to handle apartment building maintenance efficiently and cost effectively, please let me know! Goal is to save money and get the work done properly! :-)

@Brett S.

Well now I'm embarrassed... no lie, I am wearing a Polo & Two-Tone Submariner Rolex!

Now I rather have a Maserati & a timex than a Patek & nice suit! 

Ah, the superficial facets of life.....!

Call me crazy but I'm 26 and I love cars! Currently driving a 2014 Mercedes E350 Coupe.

Every time I get in it, it reminds me why I enjoy working hard. It motivates me to keep going and keep shooting for the stars. Materials aren't the gas to my engine, however for me certain things keep me motivated & driven, no pun intended :-)

FYI: All my tenants know me as the owner's representative, NOT the owner. I have designated Property Managers however I do go to each property 1-2x a month to check on things as well as to bring my handyman to do certain things to save money.

@Rob Donovan 

With some of my investment areas having colleges nearby, I do contact the near Universities. In doing so, they normally have a link on their edu website that is geared for off-campus / on campus student housing. They charge me $xx.xx for a 3 month or 6 month advertising fee. 

Most students looking for rentals access the university website to see what is available as it sources nearby housing. 

See what it takes for you to advertise your units on their website if they are within the universities proximity guidelines! 

@David Zachery 

Actually, it's not intended to portray "private money". Private money sounds more on the lines of utilizing a hard money lender. If I were in your shoes, I would pursue a family member or a close relative/friend. 

I am unsure of your purchase cost however at any dollar amount, this day and age individuals are very cautious with spending & loaning money. 

I was trying to suggest a route that avoids high interest rates and essentially all your cash. 

Find a friend/family who is willing to "participate" in your deal. Get your data in order and make sure you have all your t's crossed & i's dotted. Present that deal to your preferred relation and ask them to finance your deal (jointly sign), share the downpayment. Not sure on what your buying but say you are getting a good deal on a SFH and you can cash flow $400 a month after paying mortgage. Split the cash flow with the partner. Not only are you and your partner gaining equity in the property (mortgage payments) but also monthly cash flow for doing nothing. You have to be willing to do 100% of the work even though you won't be reaping 100% of the profits. Maybe even you put down the full downpayment & guarantee him % of the cash flow. There are finer ways to do this but your at a position which requires a little extra efforts/work to get started. Like I said, I am unsure of your potential ROI/CoC returns or intent but network with your family/friends. You may be surprised!

Hi David, I too am self employed and at an earlier stage, I too showed very little income on paper. It does effect you when it comes to banks very badly...I am still working on getting much more on "paper". 

My suggestion to you is to have a credible co-signer assist you. Now, co-signing for someone on an investment property isn't truly sought after, even by family or friends. I actually don't recommend it! However, given the deal is a money maker, suggest putting the co-signer on the LLC (or deed) / draw a contract to add them as a partner per say, can be % based. Depending on how your structure this, give them a certain $ amount or % of profits when you start earning.

I believe if your going to co-sign, you have to have some reassurance in the deal. Better yet, see if they want to be a silent partner and put some skin in the game... you get the loan, you can make some money with their money, you gain experience AND legit income on paper! In the meanwhile, you aren't tying up all your cash.....! It's a win win deal.

Make sure you deal is a winner before selling your deal to your Co-Signer / Partner first!! 

7:30 AM morning workout! Fresh, organic breakfast around 9:30! Quick shower & off to the store around 11 AM (daily routine).

While hanging out at my Pawnshop, I thought where should my next move be. I am looking for 50+ unit APT buildings....to me I am looking for one in the right location, perhaps look for an area/building that attracts the "white collar" community. I want to put good materials in a good facility where people will appreciate it! Now how to get this magical building in the right location & for the right price!!! It'll happen sooner than later, I know it!

In the mean while, I checked my units status online (via cloud system), made sure all the bills were being paid & checked out how many times the snow plow company has serviced me! A few times in 1 day, great....another $500 :-)

Also, pondered how I have to find a new primary residence....another 20% cash has to go down..too bad it can't go for another REI.

A wise man once told me, "when you walk into a meeting or a restaurant, no one can see your car in the parking lot.....but they can see your watch!" 

Buy a Rolex & call it a day! :-)