All Forum Posts by: Sean Dawson

'Evening.  We have a property that has become available for rent at the beginning of December.  I have been looking around at the listings on craigslist, hotpads, zillow and noticed there is a $225 "Administrative Move In fee"  listed.  This fee is not disclosed in the PM's contract.  There is a full months rent though that is listed for placing a tenant.    I have asked but have not gotten an answer from the PM about this.  

This is not a fee that I am familiar with and seems like it could be stopping potential tenants from renting the units.  Is anyone familiar with this?

Thanks

@Damian Smikle we've used a few different banks here in CMH.  First Financial helped us with our 12 unit (although we had 2 duplexes already), First Merchant with another duplex and US Bank for an 8 unit since it wasnt in CMH.

Thank you @Deanna McCormick, @David Gonzalez and @Thomas S.  I am thinking the same things.  I have only heard good things from this Cleveland Property Manager though.  I have a call into one of the principals and hopefully can get this cleared up.   Their screening criteria is fine and I am not concerned they are putting bad people into the units (well, no more concerned than normal).   

Morning. We are having an issue with a prospective property manager. We will be buying an 8 unit that has a current manager. 

After going into contract we noticed a pile of debris on the property. The contract states "as is" but also states that 2 units will be rent rent ready and rented.

The units are rented before we close early next month. I am disputing the rent ready part. On our personally managed properties a pile of debris would not constitute rent ready. 

When I brought this up to the PM their reply was " "I guess an evicted tenant did brick work on the side and was nice enough to leave a pile of bricks behind"

I questioned if the property manager is ok with the property looking like then and their response was "

It was from a previous tenant and they are not (PM company removed) bricks to move. They were never instructed to do anything with them." So if this is their response when they are currently taking care if the property, am I wrong to question using this company going further?  Everything I've seen on this company is positive, but this is my first time actually dealing with them.  Thanks

Thank you for all your responses.  Sorry this took so long to update.  I think the problem with coming back here was being embarrassed.  I knew what we should do, but was trying to see if I could be swayed another way from the way I knew to be right.  

We went with the 8 unit property and should be closing early next month.  It was the right property for us at the right time.  We were enamored with the larger property even though it didn't quite fit with what we are trying to do.   Maybe it will stay on the market longer and the price will drop to where we can take another look

@Chris Martin no, not big enough for the Freddie small loan program.  With down payment, its under $800k.  I've done my own proforma and have talked to PM's.  Good idea on getting their input for the banker. 

@Charlie MacPherson, yes.  Spreadsheets territory with out  a doubt.  

'Evening all.  Got another question for the hive.  We have 2 deals available to us at the moment. An 8 unit and a 32 unit.  The 8 unit would (should) give us $113 per door return.  The 32 unit would be $154 per door if we can get expenses down to the 50% range, and after the seller carry back is paid off (5 yrs).

Problem is we would use ALL our available funding to stretch for the 32 unit. Seller carry back loan, HELOC on our primary residence, most of our savings (less the required bank reserves). All of it used. Scary times indeed. But also I view it as a good opportunity.

The 8 unit is safe and profitable and we could do more of those if they come along.  The 32 unit would be a great leap forward for us.  We want to be at 100 properties @$100 a door within 5 years.  Obviously the numbers of units can change with the return we get, but we would like $10k "passive" per month.  

I know there isn't much hard info in this post, but the gist of it is I guess, slow and steady, or leapfrog?

Thanks!

'Evening.  I have a question for the hive.  We are talking back and forth with a broker about a 32 unit building.  Rent's look good, but expenses are coming in at 60%.  

I feel that this is due to the fact the property manager is someone who isn't local mostly.  There are expenses such as "automobile expenses, bank service charges, ______'s fees, (as well as management fees...it's the same person), office supplies, telephone expenses"  

Some of these seems to me to be for someone trying to maximize their deductions.  I also think that the buildings can be better managed with a professional management company.  

Problem is I have to be able to sell this to the banker.  Any tips on how to explain this?  

Thanks

@Job Hempy  Use Ken Shaw, Only Drains here in CMH.  Respectable, reasonable, ex Navy (wont hold that against him though..squid!). He does good work.

@Steve Vaughan wish those zip-its worked for me.  I upgraded to a RIGID auger, works better.  But I do like the idea of going to check out the units.  Always good for a hands on approach first. 

Thanks guys.  I know the facilitator does not need to be local.  I worded the post incorrectly.  Mostly looking for people who have had good experiences I guess.