All Forum Posts by: Peter M

Hello Stephanie.

I have a property in Lafayette that I may need a new property manager for. Would you consider managing there. I am not sure how far that is from your location.

Thanks,

Peter

Jon,

You are right about the numbers. I miscalculated. So what do you think? I realize I may have paid to much, but to late for that. What is your advice to make improvements to the numbers? What would you do if it was your property? I don't live nearby so managing it myself is pretty much out of the question.

Thanks,

Peter

Jon,

How did you come up with your numbers? The 17718 is the total I spent on the property for the year. I'm not sure how to calculate the numbers. Any help would be appreciated.

Thanks.

Scott,

Do you have the names of the lenders or someone I could contact to get further info. Thanks for your time.

Peter

Hello everyone. I thought I would post my year end numbers for one of my properties. I was negative for the year and wanted to see where I need to make changes. Be honest and hold no punches. I had a couple bad months at the end of the year with tenants that decided to buy Christmas gifts instead of pay the rent. The property is a triplex in Lafayette, Indiana.

2007 income--16247.00
if I was fully occupied the income would have been 18,600.00

expenses--17718.00

insurance--1333.00 7.5%
taxes-------2510.00 14.1%
advertising---60.00 .3%
cleaning------125.00 .7%
mainetnance-384.14 2.1%
repairs--------1194.48 6.7%
utilities(water/sewer)830.00 4.6%
property mngmt fees 1100.00 6.2%

Thats th breakdown of the numbers. The percentages are calculated from the total expenses figure. I was negative 1471.00.

My question is, Do these figures seem average or are they off in certain areas?

I have a fist mtg of 95000.00 at 7.25% 30 yr fixed at 663.00(P and I)
also a second mtg of 19300.00 at 10.5% payment 177.00 (P and I)

Thanks in advance for your input.

Thank-you Scott. I was hopin you would reply.

I can go full doc w/ around 750 fico.

One property located in Kansas City, Kansas and one in Lafayette, Indiana. a 4plex and a triplex respectively. I have been on title 2 years.

Look forward to hearing from you.

One loan per rental.

Thanks

Hello everyone. I want to refinance several of my rental properties that have a first and second. I want one loan with a lower interest rate. The properties have maybe an 85-90% LTV right now. I dont need any cash out. Any advice on which banks have the best programs? I know the mortgage industry has changed recently and some loans are harder to come by.

Thanks.

Scott,

My property managers charge 10% of rents and 1/2 to one full months rent for new tenants. I have fired several already. As far as the utilities are concerned I do not pay any gas or electric. I do pay water bills on several of them.

I think where I made my biggest mistakes is in analyzing the properties. I assumed that if the rent would cover the mortgage, insurance, taxes, and some minor repairs that I would be OK. I even accounted for some vacancies. I underestimated the vacancies and the cost associated with replacing tenants. i.e. cleaning, painting, no rent while vacant, and things like these. I also paid close to retail for the properties. I had a time frame with the 1031 exchange and rushed into the properties.

I think is that what I am going to do is liquidate my worst performers and hold on to the rest. I will be much more involved in the management of the ones I keep. I am going to take everyones advice here about trying to challenge the taxes, surveying the tenants, and staying on top of the managers.

Thanks Again and I look forward to what everyone has to say. Hope to hear from some of you shortly.

I would like to thank everyone that posted a reply to my situation. Well I admit that I made some mistakes. I definately have about two properties that I need to sell. The expenses are over the 50% rule you guys speak of, they are never completely full either, they need some updating to make them more rentable. A long story short, I would rather sell them than continue to deal with their problems. That being said, one is in Toledo, Ohio which is in a very soft market. Any suggestions on how to get them sold without taking to much of a loss.

Tim I agree with your advice on focusing on my best performers and shedding the rest.

Thanks Again.

Peter