All Forum Posts by: Steven Cowles

@Dhwani Shah an extended possession period is fairly normal in the current environment. People need to find somewhere to move! There should be clauses in your contract that state the seller should leave the property in good condition when they leave. Have you looked for that in your contract? You should insure the property as of the closing date so any unforeseen catastrophic events are covered.

Respectfully, I think you are way overthinking this. This is very normal. Asking for rent this late in the game is only going to tick them off and is unwarranted. Your agent is right, allowing them time to find somewhere to go and time to move is probably what set your deal apart from the others. So to go back on your word this late, in my opinion, would be wrong. I think you should play it out and not borrow trouble. If something goes differently or goes wrong, deal with it then. But don’t kill a deal over speculation, especially if they’re good people. Just my two cents!

Is there a multi family tenant software system similar to east storage solutions? I have storage, and am buying a 28 unit apartment complex, then pursuing a 72 unit. So I will have 100 doors to manage. Is there a software, like ESS, that creates you a website, allows potential tenants to access an online application for a new rental, existing tenants to log in and submit maintenance request, automated invoicing/billing and receipt of rental payments, etc. I like how user friendly ESS is and easy for my managers to operate, log payments, communicate w tenants, etc.

I like to get as many opinions as possible. If anyone feels like exercising their brain and analyzing this deal with me, feel free to jump in!

72 units, in bigger city with high traffic. 9,400 sq feet. At 100% occupied, gross is $53,000 per year. Annual taxes are $12,500 and insurance would be roughly $1750. No room to expand. With what info is provided, what number would you be comfortable buying this deal at? And what would your top offer be?

@Ted Kontos I’m in central Illinois. How about you?

@Michael Wagner okay. I’m going to do it now that I have your blessing 😂

@Michael Wagner total sq footage is 11,500. Forgot to mention that.

@Nick Heil I really like the additional insurance idea. There isn’t a whole lot of room to add anymore buildings or portable units. There is room to raise the rents, however. At least $10 per unit.

@Michael Wagner rates can definitely be raised $10 per unit no problem. That would up the profit $6600 a year. However, there isn’t much more land to expand on. It would be an all cash deal but after thinking of it the way you explained it, I do wish there was more equity there.

A friend I was taking to who has hundreds and hundreds of storage units told me he has had out of state groups approach him and they take the profits and times it by 10-12 and that’s what they will pay for the facilities. How accurate is that? With that rule of thumb, if we’re netting 26,000 - 28,000 and have the opportunity to increase profits to 32-34k a year, would that make the property increase to 300,000 plus?

I sound like such a noob. I am a realtor who with tons of experience in housing , but this is my first storage venture. After I get through this first deal, I will be way less of a pain. Lol.

So I am analyzing my first deal and trying to come up with a good value for the property. Please help!

Asking price: $210,000

66 storage units

100% occupied currently

Generating $3,300 a month gross

Taxes: $4500 per year

Insurance: $1500 per year

Book keeping: $1200 per year

Does $210,000 sound like too high or too low? After I run all the numbers if I bought it at $200,000, it seems pretty solid being that it is netting around $30,000 a year (if my math is correct) but I have never done this before. Any help would be great.

@Chad Urbshott it’s cool talking to someone who deals with these internally. So you guys try to align your bids with other as is homes in the area? What is a big turn off for a bank? I’ve heard roofs and mold turn a bank off