All Forum Posts by: Victor Eng

Taylor Comer Paylease is good.

Chukwudi Motanya If they are not performing what they are supposed to do as per the agreement as a managing agent, then that is a breach of contract. You should meet with the PM immediately and terminate based on evidence that they did not fulfill their duty. I've had to deal with terrible PMs in the past and you just need to bite the bullet and go with someone better.

Nazz, can't speak to Cali but 15% maintenance looks a bit high. What about delinquencies? Are you sure you can get great tenants? What are you renting each unit for? If less than 900 bucks, I would use higher delinquencies based on tenant base.

Rubber

THIYAGHU MUTHUSWAMY Would you mind disclosing in which state you are investing in?

Ran into this issue in MA. Each town has their own ordinances and their own zoning board. I would reach out to a zoning attorney in that town or neighboring town.

Jeff Howard I would say your first step in the next week is to reach out to a lender and find out how much you can borrow. This will help you filter your search and not waste your time on looking at properties you can't afford..

@Sean T. @Matt Faircloth 

Thanks for the amazingly good input. I am not too concerned on the financing side of things, but I completely missed the effect on scope of tenants willing to rent the place if there is a business operating underneath. These are valid points especially if we are talking about any foodservice business or anything with heavy customer traffic. 

But I assume rejecting a tenant based on the business they plan to operate is not illegal? Understand this narrows the scope of commercial tenants, but I'd much rather prefer an accounting firm etc instead of a bakery. 

@Trevor Ewen Thanks for looping Matt in!

BP -

I generally look at standard 2-4 family MFR investments, but the returns on 5+ unit res/com are very appealing. (ex: 7 unit building with 2 storefront and 5 1 bdrms). What sort of risks should I be considering that may not be different from the standard 2-4 unit multi? I'd love to hear from your past experiences, especially if you've had dealings in both res/com

(Annual Gross Rent - OPEX - Debt Service ) / (Entry Equity + Remodeling Costs) If top part is 15,000 and bottom is 75,000, then your annual CoC is 20%.