All Forum Posts by: Peter B.

@Tyler Wehrung

I wouldn't assume anything. I wouldn't even trust the owner/brokers provided income/expenses. I would verify. 

I don't see anything for trash? Most complexes owner will provide a trash pickup.

I don't see any utilities provided? There must be a common area/exterior lights? What about heat? Is this electric heat by the tenant or individual forced air? Or is it a central boiler paid by owner?

I  would get inside the building before putting a percentage on capex and repairs.

Properety mgmt. Get a quote.

Vacancy could be fixed? If your not familiar with the market call a property mgmt company and ask what to expect for the area.

Taxes and insurance should be pretty straight forward as far as verifying.

Income, I would ask for a current rent roll. You may have a number of long term trenants under market?

There is some really good advice in this thread.

@Ihe O. You have an interesting approach... We have a similar one to some of our c building tenants. We do however inforce the late fee, Nothing crazy but an additional 25 per month. You make a solid point about the cost of moving. We have no more or less turnover between c and b biuldings. 

@Bettina F. Standardizing finishes/fixtures within this class absolutely reduces the cost of inevitable damage. We do that as well. Getting systems for the repairs and post move out clean up is essential. A dump trailer is one of my most valuable tools.

Yes these properties have some really interesting management challenges.. I have quite a few posts on the tenant app say the dumbest things thread lol.. But over time you learn to expect these challenges and have systems to correct.

Now for B/B+ properties they have there own set of challenges.. Yes they take better care of them and rent is almost always paid before the 1st. However a lot of these tenants are needy in there own way. They are the first to complain if the plow driver is 5 minutes late or if the hot water seems to take longer to heat today. They are a little more entitled/demanding.  I'm not complaining just making the comparison to the classes.

Peter

@Samantha Klein

I would say you did.. It is far to early in your lease to make consessions.. 

The fact they avoided you says a lot.. Some people are late their whole life, and late fees can be a great addition to your bottom line. It is just to early in the relationship to make assumptions form me.. So I would follow through with the eviction..

I have... I will no more after reading @Ryan Murdock post.. And yeah it was a b.s. list of crab, lobster and other sea food. Well over 200 bucks. Thanks Ryan!

@Kole Kingslien

Wisconsin legal blank will have every document you will need.

I start with the tenant welcome form, It gives them all the information they need for that specific building. Then we go over the base lease, It is pretty in depth.   I then go over the 2 page special provisions document as well, there is an area in that doc to hand write some additional provisions. There are also some pet forms if applicable.. 

Like I said these are all available on Wisconsin legal blank. 

Congrats on your first Purchase!

Just following up.

The eviction went through without any hangups, Judge was up to speed and had zero tolerance. Police report was all I really needed for proof..

 I noticed that Wisconsin Legal blank has a few different non-curable breach 5 days now, stemming from act 176. They are pretty detailed and are very specific to the violation.

Peter 

I would give her the proper notice of non-renewal according to the Florida state laws. Moving forward I would also use a lease specific to your Florida's state laws.

@Rich Wilken

Interesting that it is assessed at actual performance.. That is not standard in Wisconsin, although I have seen it done.. Normally I would say what they are reporting to the assessor would be a great place to start... No one tells the truth to the assessor! I know I was a licensed assessor for a number of years..

You really need to get inside to confirm the interior condition and mechanical age before you can offer. 40% seems really low for expenses on a building that age especially with that water bill. 

Best of Luck!

@Vince Gethings

Agree with the above posts about cap ex and management need to be added.. Insurance would be difficult to match.. I would like the repairs to be broke down further. 22k on what exactly? Your utilities seem low.. The tenant must pay heat if this is in Michigan? Taxes are crazy high almost 2 months rent per unit just for taxes.  

@Carl Talley

We do hunting leases on about 200 acres of timber land. In wisconsin we get about 40-50 dollars an acre. Hunting is a big deal here and the rec value of the land has out paced the timber value. I would not supply a cabin.. They can pull in a camper or tent it. No need to add to your tax liability.

It would be a challenge here to find timber parcels now days to simply hold.  The bigger tracts are owned by the lumber companies or the government believe me they know exactly what they have growing.. The private owners of the smaller tracts know exactly what their land is worth due to rec demand. 

We were fortunate enough to get into it a few decades ago. It would be difficult to duplicate with today's land value vs timber value.