All Forum Posts by: William Powell

Rules will definitely be a big change for you. I tried to simply use my standard rules for a single home but you will quickly realize you will have to add things for an apartment. For instance, No carwashing, satellite services, or storing items of any kind in the shared spaces was a few I had to add.   

The first thing I noticed when moving into multifamily from my SFH background was the clientele is a little different. A little more demanding. In general, they don't treat it like it belongs to them like those in a home. A little more transition in my experience. The person renting a house is more stable and seasoned than the person renting an apartment. In general. However, much like with a SFH you eventually have a smooth-out period where all the tenants are happy and let me be. :) It's hard to just give you a spiel so if you ask a more specific question I probably can be more helpful.

The A/C unit in storage I'm not crazy about. If you have two units go down. Now one has temp units and the other you have to end up doing what I said and that's communicating. People want to know you care. Let your tenants you are doing the best you can and that you care about their situation. Give them an estimated time for the repairs and honor it. Paying a couple of hundred dollars to move units and then a couple of hundred to retrieve them later is a big headache and costly. Plus, that could take a day or so to coordinate and what if they break a window or something? I would use this time to get with one of my A/C guys and fix their problem. The neat thing is in my city HVAC supply houses are everywhere I can't recall a time I had to wait for part. Typical things that go wrong are the relay, fan motor, capacitors, and thermostat. All are in stock. I like to be proactive and service units once a year in the spring right before heavy use. Filter change, condenser cleaning, and a good look-over of the inside unit. Just this alone can catch or prevent most problems. I'm not saying what the others are saying is wrong I'm sharing how I handle things with my properties.

My thoughts on how I've handled this in the past is to never pay tenants. Especially for property breakdowns. The mechanic shop doesn't give you any money if it takes them a few days longer so neither do I. It's our responsibility, to have the problem repaired in a reasonable time. 7 days is a little long so that definitely needs to be tightened up but for a person living in a home even if they own it and the AC breakdown will have to stay with a friend or family member and wait for a tech to diagnose, then repair.

Hey buddy. Now that you clarified that space is the issue, you can simply provide a microwave venter hood. They cost more but it is what it is. Last, I'm not sure how to delete or change the subject title. 

 One of the main things I do in all properties I buy is to kill the gas line in the wall and run a 240 so I can have an electric stove. Tenants and gas stoves are not a mixture I like. They will use them to heat rooms and other dangerous habits. I usually keep a gas water heater because they tend to last so long problem free but not the gas stove. I've had only one Section 8 tenant but even in low-income areas, I don't market for voucher customers. Nothing against them but I prefer to do it the other way around. Market for a regular customer and if they need help in the future I assist them in getting their voucher.

 I will have to refi/sale the property in the next 5 years. So it's very likely that I will have to move out of this product under that. This is why I'm not crazy about it because I'll have to go to the bank with my hat in my hand again and face the scrutiny of their process instead of the set-it-and-forget-it approach I like.  

Biloxi GulfShores Gulfport Pass Christian area

Looking to purchase something beachfront and hold as a STR/MTR. I have 1 MTR I just rehabbed bringing the value to 160k which is my needed DP for the STR on the beach. Banker is telling me investors are being pushed out of the market and the terms they can offer are unfavorable. 5/7 year ARM 7.5%. I've been hearing about DSCR loans but not sure what banks do them. I've got other properties that are full of equity and are cash-flowing. Any ideas better than cashing out the new MTR for the down payment? I've got one cash out refi but I don't wanna get another one of those ARM products because that can get risky if the economy worsens. Thanks ahead of time.

Sounds like you win this case easily but some judges can have a disdain for landlords. It's becoming popular to demonize landlords as rich and greedy. However, in my experience, you got this in the bag. As someone said above bring every bit of documentation you can. Bring pictures, serial numbers, receipts, text messages etc..