All Forum Posts by: Victor Patel

Property management is a tough job, especially for OOS.  The key would be to hire a reputable property management company.  Here in the Cincinnati, OH market there are many, many PM companies.  Most are horrible.  You have to find the right one by asking the right questions and getting references.  

I'm a real estate broker and specialized in Multi family for the last 15 years. I have also had my own properties managed by property management companies.  I have heard and personaly  experienced horror stories with PM companies.  

Finding the right PM company can be a game changer.  

My advice would be to take the time to vet the right PM company because that will be the difference between profit or loss.  Reach out if you need further help/advice.

Congrats Brendon!  

I think most concerns have been addressed.  However, keep in mind, you will have to notify your insurance company that the property is no longer owner occupied but rather a rental.  Otherwise, should something go wrong, the insurance company may deny any claims.  Your premium will possibly go up also.

There could be a multitude of reasons why current rents are lower than market rents.  You have touched on most of them.  I've been a broker dealing exclusively with multi family property over the last 20 years.

Landlording is a tough job.  It's not as passive as most people would believe.  One thing I notice more often than not, especially with mom and pop owners, is that they have held onto the property for a long time and had the same tenants over that same time period.  

The owners became friends with the tenants and do not feel comfortable raising rents on their friends. Unfortunately for the owner he/she also didn't update the property in that same time period....cabinets, flooring, painting, landscape, etc resulting in a lower NOI.

However, this creates a value add for the new buyer to update the property and raise the rents!

I have seen this happen time and time again.  

Hello BiggerPockets Community,

I am thinking about attending the BPCON in Cancun.  This would be my first BPCON attendance.  Has anyone attended in the past and can comment on the experience...is it worth it?  Did you walk away with real world knowledge or was it just another rah, rah speech?  I have attended many conferences for the hospitality industry in the past and they were all just another big party with nothing to learn.  

I love Cancun but don't want to spend money on a conference that is just a party.  I could do that on my own time.  

Any feedback would be greatly appreciated.

I have 20 years of experience with selling multi-family property with 5 plus units and more. These properties were sold without listing them on the MLS. The listings were either sent directly to me and other commercial brokers via email mail or listed on LoopNet. There was never a mention of a co-op fee for the buyer agent.

We tackled this by including the buyer agent commission in the offer contract.  It never was an issue as the seller and his/her agent knew before accepting the contract that the buyer agent fee of X% was included in the purchase price.  I never had a buyer's contract.  The buyer either trusted or they didn't.  Most became repeat buyers.

This is different from the residential side for many agents and a little scary...rightfully so.  I think if the agent sticks with it, it really doesn't change anything substantially.

Keep at it agents!

FYI: I do believe the NAR caved into the DOJ.

It maybe easier to start your own management company vs buying an existing one.  

Unfortunately, there is nothing you can do until the current lease expires unless the tenants agree to sign a new lease immediately with your terms.  If they do not sign a new lease immediately, It would be a great idea to communicate with the tenants 30-60 days before the current lease expires and have them sign a new lease with the new terms.  If they refuse, you can give them a notice not to renew their current lease.  Good luck!

Hey Tip,

I've been a real estate broker and investor in the Cincinnati market for the last 25+ years.  I've my fair share of tenant issues in those years including many, many evictions.  I can tell you Ohio is a very landlord friendly state.  

If you decide to invest in Cincinnati give me a shout.  I can show you some great areas based on your criteria.  Good Luck!

It sounds like they were the real deal but all of a sudden got "buyer's remorse".  It happens very often with first time buyers.  They get scared of the mortgage, maintenance, property taxes, etc.  Keep communication open and they may come around after they get over the fear.