All Forum Posts by: Percy N.

To bring this thread back to the topic, I will also say that there is a benefit to self-managing in the beginning since it will give you more hands-on experience of the good and the bad of landlording. 

You can then tailor what you don't mind doing and what you would rather pay (and how much) someone else to take on that task. 

Over time as you grow, you have to increase the value your own time. So put an hourly rate figure on your time ($500/hr = approx $1mm/yr) and try to focus on the things that only you can do for your company. This will vary based on the stage of the company.

I don't like to discuss personal finances, much less in a public forum ;-)

Also to make it clear, I am a GP/managing partner in those units but not the single owner. So what one might potentially net will depend on the structure of each partnership and performance. Let's just say we are potentially looking at some large tax payments in 2021 (assuming no 1031) ;-)

DM me for general info/guidance and I will try to help if I can.

We try to stay away from the coins for the following reasons:

• Less convenient for our residents
• Prone to theft
• If the coin hopper  is not cleared regularly it can jam and make machine unable
• Tend to be older machines and more maintenance

Today, my first preference would be app based, followed by a magnetic card which can be reloaded via a machine in the office. Last would be coin based.

Buying vs leasing is a whole thread in itself and depends on a number of factors. The contracts from the large laundry equipment company tend to be more draconian and with the lack of service we have experienced with CSC in our market, I am weary of renewing and just buying the machines ourselves (yah - bonus depreciation).

@Brittany Alkire depending on the number of units and market, that should be possible.

On larger properties, the agencies want to see 6-12 months of NOI and occupancy around 90%+.


Have you considered a Small Bal loan from Fannie/Freddie?

Depends on your goals and objectives.

In the beginning, when I self-managed my SFR rentals, I would take calls until 10 pm (on occasion but odd how it happens at the worst time - e.g. pipe burst in rental as I was preparing valentine's dinner for my wife).

Now, with over 1000+ units, there are 3 levels of managers/organization to handle tenant issues. Don't worry, other type of "issues" will replace the tenant issues ;-)

As others have said, property manager = babysitter.

The way to address the parking issue is to give out parking permits and engage with a local towing company to tow the cars for free (to you). Tenants are quick learners.

It also comes down to the business model and the related hold period.

One of our advisors who has been in the multifamily space for over 35 years used to "syndicate" (the term did not exist in the context it does today) but hold the properties for 15-20 yrs.

@Kevin McCormack are you asking about machines in a common laundry room or in the units itself?

We have properties that have machines that we own in our laundry rooms as well as properties that have machines from a vendor.

It comes down to whether you have an existing contract in place (these tend to be long term - 10yrs and often inherited) , how much use/income you anticipate and whether you are willing to take on the maintenance of the machines.

For in-unit machines, you can buy and rent them out to the tenants or you can partner with other vendors who will do a revenue share.

Hope that helps.

SEC Regulation D 506(c) was introduced as part of the JOBS Act around 2012 which opened up the ability to advertise and accept accredited individuals. This was a major catalyst for many syndicators and funds.

@Deepti Mikki have you looked at Appfolio?

We own and operate 1000+ units and the price of most property management software is less than a couple of dollars a unit per month.