All Forum Posts by: Satyam Mistry

Hello, what are the biggest adjustments you had to make to your business when reaching 20 SFR? I am currently at 9 units and usually add 1 property at a time. I am hoping to reach about 12 units in the next 6 months and planning to reach 20 units in 2022. I self manage and target properties in B class areas which reduces my hassles with tenants.

My portfolio is currently all SFR because multi family opportunities have not come up as and if they do the numbers make it less attractive than an SFR. I wanted to know when reaching 20+ rentals what are some of the biggest adjustments you had to make with your business or things you know now that you didn't before reaching this scale?

@Whitney Robert Caldwell Hello Whitney, although I have personally not purchased any properties that have had a heavy smoke odor I have heard from others that getting a company to do a thorough duct cleaning can also help. Best wishes.

@Gabriela C. Welcome to the Omaha market. I am also an investor here focusing on buy and hold properties. Feel free to PM and talk real estate with me any time. Best wishes!

I have 2 identical condos that are on a 15 year commercial loan at 4.25%. I have had them 4 years and have a combined balance of about $97k left. My ARM is coming up in 1 year as well. It appears my HOA is going to be restricting rentals so I wanted to get the input of other investors if it is worth paying off the remaining loan balance before I sell them 10-12 months from now when both tenants lease ends or just keep them financed?

Numbers for 2 Condos Combined:

Gross Rents - $2100
P&I Payment - $950
Market Value - $210k

If I were to pay off the loans I would be saving about $950 of P&I over 10-12 months before selling so my cash on cash return on the pay off of $97k would be about 10%-12%. Am I calculating everything correctly? I am also assuming there are going to be some fees involved with the ARM refinancing that I will be due for in about 10-12 months if I keep the loans. 

What are your thoughts? Thank you for your input.

@Owen Dashner Nice one brother! Interesting to know you picked this one up on market and it ended up being one of your best recent deals!

@Desmond Fielding Hello Desmond, welcome to Omaha. I am also an active investor here, feel free to message me and connect. There is a great FB group called Omaha Real Estate Meetup started by @Collin Schwartz that you can join as well.

@Ron H. Hello Ron, it is a condo that has bylaws and an HOA board in place. The community is also managed by a PM company.

@Andrew Christian Hello Andrew, considering $4000 gross rents with the numbers you have outlined there is about $20 monthly cash flow. This is considering 8% vacancy, 5% maintenance, 5% Capex, and 10% PM. Good to have the numbers in there especially on a multi family just in case you outsource PM. If you self manage the cash flow changes to $420 monthly, but cash on cash is still under 4%. This is considering 25% down on a 30 year amortization at 4% interest rate. What are the property taxes and insurance quote you are receiving? I had to input about $8000 annual property taxes and $200 monthly insurance to get close to your $3000 monthly expense with mortgage payment. Is this a newer construction or in an area that is more appreciation based than cash flow? I am assuming at this price point you are in an A/B+ type neighborhood. Based on these numbers and the amount of capital entering into this deal I would pass.

@Gina Nicolas Hello Gina, am sorry to hear this. What explanation did the PM company have for not collecting rent for 6 months? Had you noticed this after the first month that rent was not paid? I would connect with a couple of local investors in your area and see if they recommend a lawyer that specializes in real estate matters. Try finding a Facebook group in your area of real estate investors and posting there. Call the lawyer you find and explain the situation to them and see what they recommend. Use this as a learning lesson and do not let this discourage you moving forward. 

Hello, I know this is a common topic that comes up, but wanted some input on best way to proceed with this particular situation. I have 3 condos in a community of about 70 units that are managed by an HOA as well as a PM company. I have had these as rentals for 4 years & maintain them with good tenants. The board is going back to stricter regulation of the bylaws & owners are required to submit their request for renting units. I have submitted this request via 1 page letter to the property management company that will submit it to the HOA board & am waiting to hear back. I have maintained clean, updated units, always been accessible to the HOA in case any issues arise, & paid my HOA monthly fees on time each month for the past 4 years.

I wanted to know in case the board does not approve the request is there anything additional I can do to possibly get them to reconsider that others may have had success with? 

Below I have copied and pasted exactly what is written in the bylaws regarding leasing a unit. I am not as familiar with the language, but can anyone explain what the procedure is if they do not approve the leasing? It seems as if they will in turn provide a tenant of their choice if they do not accept my request, this seems off, am I understanding that right? 

"An owner intending to make a sale or lease of his apartment shall give the association written notice thereof together with the name, and a current address for, and credit report on, the proposed purchase or proposed lease. Within fourteen (14) days after receipt of such notice, the association, by written notice to the owner of such apartment, may either purchase such apartment on the price and on the terms set forth in the proposed purchase agreement, or lease the property or furnish a substitute tenant for the property on the terms and for the price contained in the proposed lease. If the association shall not have elected to either purchase or lease, by giving such written notice within the time specified, the association shall be deemed to have approved the sale or lease, notice of which shall have been given to the association as above provided, but only to the party this identified and disclosed to the association. The association may notify the owner of the apartment prior to the expiration of the period of time within which the association may either purchase or lease, as above provided, of its intention not to so purchase or lease, which notice shall also be deemed to be an approval of the sale or lease, but only to the party thus identified and disclosed to the association. The foregoing provisions granting a privilege of first refusal to the association shall not apply to any acquisition of ownership of such apartment through foreclosure of a mortgage upon such apartment."