All Forum Posts by: Robert Nason

Pics would be great.

How did you handle the rent increases on the in-place tenants who stayed?  I am repositioning two properties...4 units and 25 units and curious on how others are handling that.  On the 4 units, I notified the tenants two months in advance of the increase and agreed to rehab their units if they wanted...2 stayed, 2 left.  On the 25 units, it's still early and I am just dealing with the vacant units and attrition...at some point, I may have to force the others along but can't do them all at once.

Hey Robert, does my math make sense and line up directionally with your thoughts on what equity gets left in the property with a refi now versus later when the rehab is done?  If so, refi now would get you ~75% of your potential lift from the rehab and rent increase ($123k would be left in the equity of the property).

If you don't need or want that equity, you are good-to-go now.  If you are looking for maximum leverage, you can wait unit all units are rehabbed and rents raised but that may be a longer horizon if you have good in-place tenants at the $1200 rate and you don't intend to force another rent increase.

Couple of other considerations (1) outlook on rates now versus later (2) current reinvestment opportunities (3) idle cash if refi and no immediate reinvestment (4) loan prepayment penalties, if applicable and not waived.

I'm curious on what you are going to do.

Very well done.