All Forum Posts by: Lee Smith

@Account Closed  Ask to see what their monthly statements look like, and when you can expect to get your rents each month.

@Sean McCluskey, and @Jaron Walling..

For Future Reference:
If you bought the properties through a Realtor, and they used the state forms, then usually the Purchase Agreement states the utilities must be on for the inspection. If you didn't have that clause in your purchase agreement it's the wild wild west.

Cheapest way to check the water is to have the water company turn the water on up to the meter, which may require someone to let them into the property if the meter is in the basement.. Once the water is on, it's easy to just have someone turn it on and see if any leaks...

For gas, the utility company will light the pilots for the furnace and water heater. If they find a leak, or vent problem, they will generally not turn the gas on and will let you know.  NOTE: Someone will need to meet the utility rep to let them in though.

If you guys want to holler at me in the future we can probably send a guy over for $100 and he can verify these things.. We won't inspect the furnace other than to say "Yep, heats on!" and water "We didn't see any leaks!"  but that may be all you want/need.

Dan Bostik, Monument title is my personal favorite..

Hocker is ok, but they are slow and are not very flexible.

I have had issues with Chicago Title, and First American missing clouds on titles so I refuse to use them when I, or any of my clients, are buying a property.

Meridian has a tendency to make mistakes on the settlement statements, so you need to verify everything.

@Account Closed Rhetorical Question: Did you know that if you, as a business, pay BBB money each month they will pretty much guarantee you to have an "A"- rating?

@Account Closed Are the bad reviews from owners or residents?  My company currently has 5 one star reviews on google. All of them are from applicants who became upset when we denied their applications.. hehe I turned off Facebook reviews because of applicants who were also denied. 

Last year we took over a bunch of properties from a slumlord.. Whilst trying to fix the issues the residents said we were to blame for all their woes... Didn't matter we were new on the scene, they started blasting us every way to Sunday.

I have fired owners as well. I am not a slumlord. I have had owners get mad because I charged them $25 to clean gutters. So if you read reviews from owners try to keep an open mind. 

That's not to say that management companies are perfect. No property management company is going to be perfect. I became a property manager because I disliked the other PM's in Indy. Even the best PM's may not suit your needs, and it may take you a while to find one that does meet your needs, OR you will settle.   

@Morris Cohen  Not sure if you solved this already or not.. I get my guys an 8-10 lbs "honey baked ham" each year... They LOVE it... 

@Curtis Robbins

In Indianapolis: When dealing with multifams, you need to be aware of a couple of different things.

Most multifams in Indy are in low income areas, and are much older(1900-1950’s). The deferred maintenance wracks up quickly, and you have to multiply that by the number of units.

Higher vacancy rates, instead of 2-4 weeks to fill a single fam, you are looking at 4-8 weeks to fill a multifam. It’s not for lack of applicants, but lack of GOOD applicants.

Higher turnover rates.. While my single fam renters generally rent for 4+ years on average, my multifams only rent for 1-2 years on average. The premium for single family houses is not that much more, and most residents will gladly pay that amount to not have neighbors. Turns(One tenant moves out and you have to prep for next tenant) are what kill you in rentals. A good tenant turn is probably going to run you $1000-1500. It's VERY rare that someone gives you the property back in the same condition you gave it to them.

Watch out for owner paid utilities. These can break the deal. While water/sewer is easy to deal with, anytime you are paying for heat you are looking for trouble. Residents crank the heat up in the winter and then open a window to cool off...

I am not trying to scare you off, just you need to budget for them.

I don't mind multifams, but the numbers have to be right, and in this market it's hard to get the numbers right. I am buying more single fams than multi's currently. 

@Lamont Glover II In Indianapolis: When dealing with multifams, you need to be aware of a couple of different things.

Higher vacancy rates, instead of 2-4 weeks to fill a single fam, you are looking at 4-8 weeks to fill a multifam. It’s not for lack of applicants, but lack of GOOD applicants.

Higher turnover rates.. While my single fam renters generally rent for 4+ years on average, my multifams only rent for 1-2 years on average. The premium for single family houses is not that much more, and most residents will gladly pay that amount to not have neighbors. Turns(One tenant moves out and you have to prep for next tenant) are what kill you in rentals. A good tenant turn is probably going to run you $1000-1500. It's VERY rare that someone gives you the property back in the same condition you gave it to them.

Watch out for owner paid utilities. These can break the deal. While water/sewer is easy to deal with, anytime you are paying for heat you are looking for trouble. Residents crank the heat up in the winter and then open a window to cool off...

Most multifams in Indy are in low income areas, and are much older(1900-1950’s). The deferred maintenances wrack up quickly, and you have to multiply that by the number of units.

I am not trying to scare you off, just you need to budget for them.

@Bruce Lee I use Mike's electrical maintenance   I will pm you his contact info.  Good guy. 

We handle within 5 miles of 465 loop.  Thanks.