All Forum Posts by: Rachel Payton

Thanks for the advice all.  I put an ad on Zillow and received a couple emails from it!  So hopefully something works out!

Unfortunately I just bought the property 3 months ago.  This is my first vacancy.

I'm not doing any paid marketing yet.  Just craigslist.  There's a page on facebook for properties for rent or sale in the area that I'm using which has actually gotten a few hits, but everyone thinks it's a house, not an apartment.  Suggestions on other site I could advertise on would be great!

I own a 5-plex in Urbandale, IA. The largest of the 5 units is a 3-bedroom, which is the vacant one. The other 4 are 1 bedrooms. The 3bedrm is super nice, and over 1600 sq/ft. Laundry in-unit, pet friendly... all the things you could want in an apartment. I'm having some real problems finding people who are interested because the unit is in a converted house. So the pictures of the building look like a single family home. I've had several people contact me thinking it's a house (even though the ad clearly states apartment) The rent I'm asking for is comparable from what I'm seeing in CL. But it seems like there's a LOT of competition. There are TONS of ads for the same apartment from large complexes. I'm not using a management company right now. I've attached my CL link. (I realize many of the photos aren't great, i'm having professionals taken tomorrow) Any suggestions on how I can better market this place, or if I'm way off base on my pricing, would be appreciated.

https://desmoines.craigslist.org/apa/6165313694.html 

I own a 5-plex in Urbandale, IA.  The largest of the 5 units is a 3-bedroom, which is the vacant one.  The other 4 are 1 bedrooms.  The 3bedrm is super nice, and over 1600 sq/ft.  Laundry in-unit, pet friendly... all the things you could want in an apartment. I'm having some real problems finding people who are interested because the unit is in a converted house.  So the pictures of the building look like a single family home.  I've had several people contact me thinking it's a house (even though the ad clearly states apartment)  The rent I'm asking for is comparable from what I'm seeing in CL.  But it seems like there's a LOT of competition.  There are TONS of ads for the same apartment from large complexes.  I'm not using a management company right now.  I've attached my CL link.  (I realize many of the photos aren't great, i'm having professionals taken tomorrow)  Any suggestions on how I can better market this place, or if I'm way off base on my pricing, would be appreciated.

https://desmoines.craigslist.org/apa/6165313694.html 

I recently closed on a 5 unit apartment building in Urbandale, IA.  It has 1-3 bedroom apparent and 4-1 bedroom apartments, with a gutted space that is large enough to add a 5th 1 bedroom for a total of 6 units.  I'm trying to think about what would increase my profit margin the most and wanted a sounding board.

Market rent in the area for my 1bdrms is probably somewhere between $550-600.

My 3 bedroom is currently rented at $1300, but I think it's under market, and should probably be between $1350-1500.

The options I'm toying with are converting the gutted space into a 5th 1 bdrm apartment to add ~$600 a month to income, OR, I can demo the apartment next to the gutted space, and turn both areas into a 3bdrm apartment for $1350+ a month.  I could also eventually do the same with 2 more 1bdrm apartments on the lowest level.  

The option to convert to 6 units is obviously the easiest, and cheapest option to get more cash flow quickly.  BUT, if I do convert the property to have 3- 3bdrms and 1-1 bdrm, then I'm now at 4 units.  I think I would be able to re-finance the property as a single family residence, get a lower rate and a longer mortgage.  So I would be increasing my income AND lowering my monthly payments.

What do you think?

@Ron Tafoya Thank you!

@Chase Keller If you could share the paperwork you use that would be amazing!!!  We are closing on our first multi-family property in Urbandale.  It's a 5-unit with potential for 6.  

Anyone know of a site where I can get property management forms for Iowa, including a generally accepted lease?

@Nick Wadle It's going well! I did get some conflicting information early on from the lender I was talking to in Oregon versus the one we went with in Iowa. Oregon said they couldn't lend to our LLC because the company doesnt have any assets. Iowa lender said they do that all the time, but we already had an accepted offer with my husband and I as buyers. So once the property closes, we now have to see a real estate attoryney to get title transferred to our LLC.

The seller of the property did want a pre-approval, so I just asked my residential lender to send me one for the amount needed.  Which the seller was happy with, even though we didn't use that lender.

So now I'm in the process of putting together paperwork and contact information for my new tenants that I'll be getting on April 1st!