All Forum Posts by: Scott Johnson

Turn key 3/1 SFH

Asking price: $172,000

My offer: $150,000

Monthly Rent: $1,400 or $1,500

Property Tax: $2,500/yr

Insurance: $1,000/yr

Maintenance/Repairs/Capex: $2,000/yr

Do you like this offer? Would you go any higher? Thanks

 Thank you for the response, I’ll definitely take a look. I appreciate it!

Investment Info:

Other commercial investment investment.

Purchase price: $450,000
Cash invested: $450,000
Sale price: $730,000

100 unit self storage facility

What made you interested in investing in this type of deal?

After my initial success with another storage facility I wanted to find a larger facility.

How did you find this deal and how did you negotiate it?

I became aware of the facility due to a real estate yard sign. I live in WV but owned a different business in nearby College Station.
Originally I offered much lower than the asking price. The offer was based occupancy below 40%.
The offer was rejected out of hand.
I moved on to exploring other properties.
About 5 months later the seller reached out to see if my original offer was still possible. I said yes.

How did you finance this deal?

I initially started to pursue an SBA loan. When I received the final approvals from the lender 75 days into a 90 contract I thought all was good. The lender told me no, they couldn't actually close in the 15 days left. The seller was not willing to extend and I was fortunate to be able to self-fund the deal.

How did you add value to the deal?

I took the property from 38% occupancy to 100% occupancy in about 18 months. I put in technology like online rental, security cameras, etc. Repainted doors. Installed corner bollards to protect the buildings. Added several outdoor RV parking spots.

What was the outcome?

At 24 months we sold for a solid profit. The timing worked out well because I also sold my other TX business.

Lessons learned? Challenges?

SBA loans always take way longer than expected.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Both on purchase and sale.
On sale I worked with a real estate agent who specializes in Self Storage.
Dave Knobler of Marcus and Millichap.

Homads posted this in a Facebook group I’m in and I LOVE the concept, though as an MTR property management company,  I find the numbers (in my market) tremendously low. What are your thoughts on it? Does it seem accurate in your market?

https://homads.com/calculator?...

I am looking for a lease for a SFH whereby the tenant is responsible for tenant activities (such as you clog a toilet or break a door or window, you fix it or you pay to fix it), but I am responsible for landlord stuff (broken water heater, etc.). If you have an "iron clad" lease that you wish to share, I would really appreciate it. Thank you.

I am closing on two properties soon and they do not have leases in place.

I apologize, I searched the forums and was unable to find a copy of a lease.  Maybe my search skills are not great or maybe the term lease appears just too often.

Hello everyone,

I have a particular issue with my Property Management Company.

My rental property needed plumbing work done. My property managers told me the repair would not be covered under warranty without even talking to our warranty company. When I called our warranty they approved it stating the plumber would simply have to fill out a work order online for them.

When I told my property managers this, they repeatedly insisted that the repair was not covered under warranty and repeatedly requested to deduct from rental proceeds as payment for the repair.

Our property managers provided me with a plumbing company of their choosing and I begrudgingly agreed as long as I could pay the plumbers directly. Again, my property managers insisted on drawing funds from rental proceeds.

This disagreement went on for weeks.

Our property managers did eventually contact our warranty company, but whatever was said caused our warranty claim to be denied which meant I was stuck with the bill.

Out of pure exhaustion I gave up and allowed our property managers to deduct from rental proceeds who's attitude all of a sudden changed and stopped being argumentative.

Not only that but they sent me a generic POA form, telling me that they could not sign leases without it and that it was a "new rule" in Florida. They already have a managment agreement that describes what they're asking for in the POA and Florida does NOT require property managers to have a POA to sign leases by the way.

I stalled for months and sure enough, they renewed our tenant's lease, without a POA.

So what is/was my property management company trying to do? Why do they insist on deducting from rental proceeds? Why is my warranty company being told information that would otherwise deny a claim? How was this NOT normal wear and tear?

All we needed replaced was a water line in the kitchen.

I don't know why this wasn't covered under warranty.

Now we're at the point of replacing the drywall and my property management is again asking to pull from rental proceeds, and SURPISE SURPRISE the work isn't covered under warranty.......BECAUSE our warranty didn't hire the plumbers in the first place. How convenient.

I believe our property managers are siphoning funds directly from rental proceeds and/or receiving a kickback for the repairs and want to eliminate oversight from a third party warranty company.

Am I crazy?

Am I the only one seeing this?

Am I just going to have to suck it up and pay out of pocket?

This is my first and only property.

What is the price offer calculation when using a hard money lender?

e.g. Baseline Offer=ARV*.70-Repair Cost

What is the formula for adding Hard Money Lenders to this equation?

I have identified a 108 acres in Carlisle South Carolina that I want to purchase. Of course, there are legal challenges. There are two owners. One is deceased as of 2009 and died in Pennsylvania without a will. The other lives in Connecticut and is still living. What is required for the living owner to sell this property to me?

I am a new investor and have been solely looking for duplex properties. I see a lot of nice single family homes for sale and often see investors talking about their portfolios of single family homes. When I run the numbers, I often see little or negative returns on these SF properties. Am I looking at them the wrong way? I'm evaluating against the 1% rule and with utilities and taxes, most of them are negative. Am I missing something? What factors or metrics should I be looking at? 

Single or Duplex Requirements I'm using:

150k or less

Turnkey 

C Neighborhood or better