All Forum Posts by: Zach Richtor

Hey BP- I wanted to get some feedback on a new business venture my company has started.

My maintenance company just moved into the multifamily space after working exclusively in the commercial space for years.

We have developed a pretty cool solution that could be a game changer for a lot of multifamily owner/operators out there. 

We are a 24-7 answering service, and a construction company rolled into one.

Here is how it works:

-Our facility coordinator team (in the office) gets the maintenance request directly from the tenant

-Our Coordinator makes sure the request is valid, and can't be troubleshot over the phone

-One of our field technicians (self performing if in Pacific Northwest) is dispatched to make the repair

-Our Coordinators follow up with the tenant to make sure they are satisfied

Our goal is to make sure that we are lowering PM's costs, and saving them time- not the other way around.

We only charge $10 a door for 24-7 answering service and PM scheduling.

Our hourly rates for the PNW vary by region, but are lower than market.

For example- we only charge $70/hr for handyman work in downtown Seattle.

What do you think? Today we are beta testing in the greater Seattle Area

Zach

answer connect is another good one- that is what my company uses. Customizable scripts and a call tree if tenants still have problems. They also have the functionality to send group text to myself, property manager, and maintenance manager when a repair is needed

Karl-

I did lots of research. There were a few top markets/cities that I found. I ultimately went with Arizona because I thought I would rather visit AZ twice a year than Oklahoma, Ohio, or Illinois.

Phoenix and Tucson were equally good choices- but there were a few other cities I also really liked.

I looked for any city/community with consistent job, population, and wage growth. However, I needed the cost of living to be at or below national the national average. This immediately weeded out many of the bigger cities and left me with emerging markets at higher cap rates.

From there I started looking for low property tax rates,favorable Landlord Tenant Laws, etc.

In my opinion there are lots of cities in FL that are set up well to appreciate and cash flow. For me living in Seattle, itwas cheaper, easier, and quicker to travel to AZ.

Hello BP,

I have spent hours combing through old posts learning the world of commercial real estate investing.

It has always been my dream to buy a small to mid size apt complex.

However, I live in Seattle, and I quickly realized I was priced out of the market. I also determined the CAP Rates and Cash on Cash return was minimal- 5% or less on most deals. And I would be extremely leveraged to get into such expensive buildings. Looking at those factors, I felt more comfortable leaving my cash in the stock market- growing it slowly until i found a deal that would cash flow better.

I finally decided to look out of state. I became frustrated with the entire Seattle market. I determined Arizona was the best place to buy. Low property tax rate- friendly landlord laws- and steady job and population growth around the major cities. I contacted all the local multifamily brokers and told them what I was looking for.

I ran the numbers on 15 to 20 different properties. We made offers on 3 different deals over the course of a month. Finally one was accepted: a 16 unit low rise in North Tucson. Conservative calculations put the CAP rate at 8.5% with C on C of 19%. Much more appealing than the Seattle area!

Very excited about this big step- but also very nervous. Being out of state scares me.

I have a few questions I hope the BP community can help with:

• Any recommendations on Tucson Property Management Companies?
• Any contractors you recommend in the Tucson area? - Property will likely need a new roof
• Any other advice you would give to a first time out of state AZ investor?

Thanks for all the help. I enjoy reading the BP forum and plan to document the entire process to help the next investor avoid some of the mistakes I will undoubtedly make!