All Forum Posts by: Matthew Masoud

 Thanks Nick. I love real estate and running the numbers but don't like managing tenants.

I've been investing in multifamily for 2 years now. I'm up to 40 units. I operate my apartment buildings as mid-term rentals.

It's been a nightmare.

Returns are amazing but it's a full-time job. 

Tenants expect hotel-level services. Here are some examples.

- I had a guest call me yesterday at 9 p.m. asking for additional towels. 

- I had a nurse complain that the tenant was being loud at 3:00 in the afternoon (she works nights).

- I had a tenant call me about my couch not being comfortable enough. Threatened to leave if I didn't give them a new couch.

- I had two washing machines and an AC break down.

- I had a guest cancel a reservation because she did not know it was a 2nd-floor apartment and she couldn't walk upstairs

This all happened over the past 3 days.

After thinking long and hard, I decided I'd rather take a much smaller return with retail/industrial but with significantly less work. 

I quit my job to manage these rental units and to be honest with you all, I liked my engineering job better.

My plan is to hire someone full-time to manage these units (since that will be significantly less than paying 20%-25% for PM company).

Even after paying an employee, I'm still netting $400/door. I'm working on creating the systems and processes so that I can manage this person effectively from anywhere in the world. 

If this works well I may continue adding units but under that PM. I won't manage MTR/STR myself anymore.

Thank you for listening to me moan and complain 😂

 I find the owners using a software called PropertyRadar. There are many out there that do the same thing but that's the one I went with.

Financials and any additional information needed to make an offer will need to come from the owner.

It's a lot of rejection but once you get the right owner on the phone you can get a sweet deal.

If it says in the contract it's not assignable.

Everything goes back to the contract you have with the seller.

I used PropertyRadar to pull a list of multifamily property that fit my criteria then just contacted the owners.

The owner had 4 empty units that they did not have the funds to get rent ready. They were bleeding money every month.

Best deals I've gotten were found off market by contacting multifamily owners directly and making them an offer.

They net more because no agents are involved and I'm the only one competing so I'm likely to get a better price.

I've gotten good deals on market but they come in one of two ways.

1. It's been listed for a while (or fallen out of contract 2/3 times) and I come in with a low offer that gets accepted.

2. I make a cash offer without 1 hour of the property hitting the market and make it expire by end of business day.

 Leases are similar except I take out the language that allows the contract to switch to month to month.

We do a background check, and credit check unless they'd rather show documentation from work for travel. We'll take that instead.

 Lol just made an offer on 61-unit property. No way to walk the property 60k sqft without being under contract. Easier said than done.

We operate STR/MTR out of multifamily apartments. So we don't have the typical vacation "house".

Our Florida properties were seeing a decrease in occupancy so we had to adjust our pricing. Margins are smaller but still very profitable.

Our STRs in smaller markets are unchanged (Dayton, Raleigh, Tuscon).

Some markets are oversaturated and many people purchased property that doesn't pencil out as long term rentals. Those people will be in trouble if this trend continues.