1st multi unit rentals

[Andrew Notarfrancesco]

On 1/30/15 i purchased my first multi unit rental properties.  2 buildings 6 and 4 units respectively.  Closing and transfer was a very positive experience.  my first month collecting rent has been good as well.  i would intend on posting on this each month and providing an update on the progress of a first time Landlord.  On my trip through this new endeavor if anyone has any prudent advice I am all ears. I have listened to most if not all of the podcast and find the education i have gotten amazing.  

I look forward to a wonderful learning experience.

[Azeez K.]

@Andrew Notarfrancesco Congrats on your MF.

Here are some Tips

Tip # 1: Water: Pass through to your tenants. If you have separate meters then it's perfect. If not look for sub-metering company. If not have provisions in your lease for water usage over x.

Tip # 2: Build a good team: This is the foundation of your business i.e. reliable contractors, plumbers, electricians etc

Tip #3: Streamline your process: Set your business process on auto-pilot for example leasing, rent collections etc or if you have a PM make sure you assess how well they are doing collections. If you don't have a PM then its up to you to have processes in place so that you don't get called in the middle of the night

Tip #4: Meetup: Use BP meetups and seek out local investors and get a list of reliable contractors and REI professionals cuz you will need back-up. In return provide them with reliable people in your network so it's win-win

Tip #5: Get a Google Voice Number - Trust me you need this especially if you are posting ads for Rental

Tip #6: Preventative maintenance - Must

Tip #7: Be proactive and not reactive to your tenant's need. They will stay longer. Address maintenance issues

Tip #8: Treat People Fairly: If you find good people on your REI team. They are worth their weight in gold. So treat them fairly

Tip #9: Seek professional advice:  On Tax and Accounting - you need someone like better call saul from BreakingBad :-) 

Tip #10: Keep record of everything especially when dealing with Tenants. Make sure when you send late notices etc they are through certified mail

Tip#11: Constantly Assess your rental rates use sites like rentometer, realtor rentals etc. You can also post ads on postlets for different price points to gauge the interest from people 

Tip #12: Don't commingle funds from your personal and business

Tip#13: Maintain a 6 month PITI reserve

Tip#14: Bathrooms: These are typically pain points especially with leakage etc. If you use energy efficient toilets you may be eligible for reimbursement under your county program

Tip #15: Read books such as Multi-family millions

Tip#16: Try to keep tenants for minimum of 2 years. It will save you cost

Tip#16: Positive Cashflow = Happiness :-)

Hope this helps.