All Forum Posts by: Tyler Nelson

@Darius Wade with a HELOC you are accessing additional equity in the house and it becomes a second lien. However, your debt to income (DTI) is still taken into account. So if you've maxed that out then you're a little stuck. I did a HELOC to start my investing and then switched into DSCR loans. HELOC rates and DSCR rates are high right now but I'd be happy to talk through my process. Feel free to send me a connect invite if you want. No strings attached.

@Bill B. could not have said it better myself. More expensive definitely does not mean better. 

(Doesn’t let me tag Michael). 

Yes I am an agent, but more importantly I am an investor. I own 30 units and have 3 property management companies to test them out, plus managing myself. Marketing is extremely cheap, and the most expensive company I use has the highest vacancy, lowest communication, and lowest effectiveness. 

Because of this I started my own property management company and as Bill said, automation, and utilizing technology, can significantly lower costs in the PM space. My fees are significantly lower

Regardless, to get back to the question the OP asked. I believe their services are expensive at face value. However, if they crush it and do a great job by getting good tenants, getting them fast, and helping preventative maintenance then it would be worth it in the long run. You just have to find the right fit. 

These are pretty standard, I think you could find someone that is good that does not take the full first month rent. That amount I think is unreasonable. 

I am an investor myself and saw a gap in property management service. I just started my own property management company that leverages the type of technology short term rental management companies do. Percentage based pricing frustrated me as an investor so all of my pricing is a flat fee. Depending on the rent your trying to receive I may be more or less expensive. Please feel free to reach out, happy to discuss further.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,470,000
Cash invested: $1,470,000

These apartments were mostly renovated. A 6-unit interior walk up apartment located less than half a mile from Swedish Medical Center and Craig Hospital. Three of the six units are operating as furnished units with opportunity to convert the remaining three units in order to dramatically increase revenue.

What made you interested in investing in this type of deal?

Great value in the area, lots of investments, great walking potential, fully renovated with a good cap rate. There are still opportunities though for small improvements that can have a big impact on cashflow.

How did you find this deal and how did you negotiate it?

Found this deal on Crexi, saw it the next day and found a partner that could allow for an all cash purchased. Utilized a personal friend who was more familiar with the area and also an agent just to sanity check the deal.

How did you add value to the deal?

Smart locks to make management easier, added recycling, and am going to do some general refreshing in the yard.