All Forum Posts by: Stephen E.

I have a two unit building with a large commercial unit on the ground floor, when rented goes for about $4,000 monthly. There's a large owners unit above it that makes great money as a legal AirBnB. Because of local laws only the top can be STR.

I've decided to sell the building and I'm wondering if I should focus on getting the downstairs rented out first, or if the building will sell for more/quicker with the commercial unit unrented. The realtor I've engaged to rent the commercial space is encouraging me to list the property and the rental simultaneously but I think if I was renting a commercial unit I might be turned off by the building being for sale.

And of course sometimes a commercial tenant makes renovations on their own dime that adds significant value to the property.

I'm kind of stuck here. Another consideration is if the property doesn't sell for what I'd like I don't want to be missing out on the rental income, which is substantial. And I'm worried the realtor won't try as hard to rent the space if they're focused on getting the building sold.

Not my first rodeo, but the situation is kind of unique. Would love to hear what people think.

Hi. I have one comment. I think you should use PriceLabs or Beyond Pricing. PriceLabs is much cheaper so I use it, at $20 a month. It sets the price dynamically so maybe if there is a local event and demand is higher PL will know to automatically raise the rates. This was a game changer for me and allowed me to just set a base price and forget about it.

Originally I used Beyond Pricing and I liked it but they take 1%, which ends up being a lot more than $20 a month depending on your rental.

Is it possible for you to move back into the property for a little while and refi as a commercial loan? Seems like it would really be worth your while.

I'm about to go from 9 doors to 15 doors (yay me!). I haven't needed an online payment processor before because 6 of my units are out of state with a property manager so I don't deal with them. I currently have 2 long term renters I manage. But with the new building I'll soon be managing 8 long term renters. I want an easy way to accept online payments.

I'm thinking I will use transunion (Smartmove) to screen the tenants. But does anyone have experience using these property management solutions? Avail looks interesting as they have a personalized website option that I like, and they list your property across a lot of platforms. But they charge $5 per door to avoid charging your tenants to pay using their bank accounts. And that turns me off.

Apartments.com looks like the best/most thorough. And I like their expense tool. But I'd love to hear everyone's experience.

One thing about Zillow is I feel like their reputation has really been tarnished recently.

Anyway, thanks for any input!

Personally I would hold, cashout refi, and get another property.

Definitely check with your local tenant's union. In the current situation, with the eviction moratorium, I'm surprised they're not letting you out of your lease. You could have stopped paying 5 months ago and agreed to pay in full and leave. Etc. I know that I would have let you out of your lease and most small landlords would, with that kind of notice. But big companies are different I guess.

Still, go to your tenant's union. They're going to have much better answers than anything anyone is going to tell you on BP. They'll actually know what they're talking about.

Good luck!

I'd love to know what people think about listing commercial properties for lease with a listing agent.

I have a 3,000 square foot store front in New Orleans I'm almost done rehabbing (it's been a process!). It'll probably rent as a small grocery or a restaurant, around $5000 per month I imagine.

How do people feel about listing commercial rentals with agents? I'm worried about being locked in a contract and then it not renting and still having to pay a commission if I have to end up doing the listing myself. Also, 5% commission to the agent on the entire lease, 6% commission if the buyer has an agent.

Any insight is appreciated, especially if you have experience using a listing agent for your commercial rentals.

I'm wondering about people's experiences with commercial leasing agents. Is it worth the 5%? I know everything is negotiable but how long would you allow someone to have exclusive leasing rights?

I'm most worried about signing with an agent, 3 months pass and they haven't shown the place so I decide to list on Craigslist or something but I'm still on the hook to the leasing agent.

I'm also interested if you have experience with leasing agents you like in the New Orleans area. I'm finishing rehabbing a 3,000 sq.ft. storefront and would love to get a good long term tenant in there.

Thanks!

Hi Essien. You will almost certainly do better with STR than a long term renter. But it will be considerably more work. If you're living next door though it's very easy to manage. In order to get your accessory permit you'll need a homestead exemption. Good luck!

It's not a market that I would expect to significantly increase in value, but if a deal is good then I wouldn't hesitate to purchase in Marigny.