All Forum Posts by: Rafael Norat

Peter Crabtree The tenant can call and verify is the money has been cashed abd when. If is hasn't, they can cancel the money order and refund the tenant within 30days. I've dealt with this in the past. It is the tenants responsibility not yours. Either way, rent is due as along as you provide what you agree to you should get paid. If the tenant has good rent history, I'd consider a payment plan to catch up quickly. If not, I'd give them till the 15th to pay otherwise proceed with the eviction process.

@Reginald Truss

Thanks for the reply. I will reach to you to discuss.

Rafael

ATTENTION Lenders (Conventional or Private),

I have an offer to purchase 14 residential units in total located in the Wilkes Barre, PA area. These units are finished and fully rented with long-term tenants. The investor/ owner has owned these properties for 10 years+ and is looking to liquidate. Total purchase price is $725k.

Highlighted property/offer details are as follows:

PROPERY DETAILS

Property Address Number of units Monthly Rent

==============================================================

18634 3 675+675+675 = 2025

18706 2 675+ 695 = 1370

18706 3 (Bldg # 1) 590+530+530 = 1650

2 (Bldg #2) 490+700 = 1190

18706 2 750+695 = 1445

18702 2 675+ 675 = 1350

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Total: 14 Units $ 9030 Monthly Gross Rent

=============================================================

PROPERTY TAXES + INSURANCE

Property Address Property Taxes Insurance

----------------------------------------------------------------------------------------------

18634 2862.12 1010.00

18706 2244.76 456.00

18706 5132.85 1299.00

18706 1888.62 425.00

18702 1483.15 620.00

-------------------- --------------

Total: Property Taxes - $13,591.50, Insurance -  $3,810.00

=============================================================

MISC EXPENSES

18634 Garbage Collection: 660.00

Sewer (total): 682.08

18706 Garbage Collection: -0-

Sewer: 423.60

18706 Garbage Collection: -0-

Sewer: 1051.60

18706 Garbage Collection: 430.00

Sewer: 423.60

18702 Garbage Collection: 106.00

Sewer: 423.60

----------

Total: $4190.88

=============================================================

OTHER MISC. EXPENSES ( Maintenance etc )

$5000.00

============================================================

Total Gross Income: $108,360

Total Annual Taxes: $13,591

Total Insurance: $3,810

Total Garbage + Sewer: $4,190

Total Misc + Maintenance: $5,000

----------

Net Income: $81,769

PRICE: $725,000

20% DOWN: $145,000

------------

MORTGAGE AMOUNT: $580,000

-The seller is willing to carry back 10-15% LTV in a second position

-I am seeking a lender (private/conventional) willing to take a 1st position for 75-80% LTV amortized over 30 years, payout in 15-20 years

-Wilkes Barre PA is a classic linear market. Hospitals, Universities, Industrial Parks, and Pharmaceutical Call-Centers dominate the labor market.

-I own 40+ units in the area and have developed reputable management & rehab crews to support.

-Detailed information, including personal portfolio, balance sheets, tax returns, rent rolls can and will be provided to serious inquiries

Feel free to contact me directly if you have questions.

Thanks.

Rafael

Definitely need local advice here, as state laws may vary. How come the 60 day policy? Is that minimum state requirement as well?

I think from an educational standpoint its great to manage your own units at first so you see the nuts and bolts and understand how to properly assess managers. I'm nearing 40 units now with a full-time job and still balancing pretty well. Good management companies that deal with small (10 units or below) apartments in my area of investing are hard to find. With that said, I'm steadily defining a good system I'll trust and staff to hand off to once I hit about 50.

To each their own. But its hard to avoid not factoring in when purchasing considering your strategy may change or develop at some point.  

Shea Spinelli App folio, buildium, and rentec. Those seem to be the 3 top management apps used. I own and manage close to 40 and have used buildium for over a year now. Very easy to learn, great customer support, can easily setup ACH payments, coordinate repairs with contractors, generate invoices, reports, and such. Only complaint is that you can't text notify directly a contractor when generating a request. Can only send them an email. App folio seems to be used by the larger management companies and seems to cost a bit more. Rentec wound up costing a bit more for me when I looked at it and didn't seem to add more value than what I am getting with buildium. Definitely start out with one. Pick one and try. There should be free trials on all of them. Hope that helps!

@Katherine S.

Check out the book landlord on autopilot. Good read that talks on the subject a bit.

Katherine S. Just be glad he's at least paying! A lot of renters are just that because they have trouble balancing the finances and paying bills on time. But at least you're making extra income above your lease. What's does your lease state in terms of payments? Maybe consult with the magistrate and see if the habitual late payments can give you ground to not accept payment and proceed with the eviction. Either way, just be glad you are getting payment through this and tighten up your lease where possible to avoid. Look into your states landlord tenant laws or work with your attorney to edit and avoid. Hope that helps!

Jonathan Khachatryan Congrats on getting started! You have a good amount of capital to get started as well. There are plenty of pros and cons between single and multis. Multis may be easier to judge globally from a numbers perspective as the added value can be shown in your cap rates and such, whereas singles can have the advantage of residential buyers if you need to sell down the line. But there is always success in either as long as you have a good business model and can implement well. I would suggest finding people who has successfully done both and picking their brain a bit. Don't be in rush to spend your funds. Let someone who has been there before guide you a bit. I personally started with multis, now have some singles, now have storefront business to raise capital and expand into flips and larger commercial units. I may have just taken the commercial route from the start of I had the capital to begin with. But either way, I have some good tool on my toolbox now. Hope that helps a bit...

@Robin Boyer

Hate to be simple about it, but cash flow is just about buying at the right price plain and simple. New Jersey is crazy overpriced (not sure if as much as CA), but you can still find great cash flow deals if you dig enough. I've been in PA for a time now that properties show up much easily for me and my lenders, contractors, etc are all lined up. At some I'll look in NJ, just so dam busy in PA at this point. With that said, finding property management by me is tough. I learned that lesson y first 2 years. So its never an easy equation. Have to just pick ONE and focus on that. Havent done much rent to owns yet, but there are plenty of people and article here. I would definitely have an attorney write up your contracts and include that in your closing costs. Also find credit restore companies to perform an annual check on the tenants to see if they are progressing. Set it up to actually help people as apposed to handing them a bill.