Hello BP Nation:
I am looking for an excellent property manager, new or tenured, in Knoxville, TN, for a small multi-family (5-units) I am considering to purchase.
As I have shared recently, I am beginning to transition from Buy and Hold SFRs to Multi-Families.
In the past few years, I have gained experience managing rentals from afar in a New Jersey market I know quite well.
However, I am now facing a new challenge.
Specifically, I am considering the purchase of a 5-unit property in Knoxville, TN, a market with which I am less familiar.
I would be interested to learn from Knoxville, TN members of BP Nation who your favorite property managers are.
Know a great property manager in Knoxville?
Please consider sending me a referral.
I am an experienced investor and enjoy working with excellent local talent.
Am open to working with young talent if they have talent and are looking to build a business.
Thank you in advance,
I am in the same boat. There are a lot of investors here and most of the list prices for multi family are way overpriced. Some of them would need to be cut by 40% for me to buy them. The problem is the rent is so low so it kills the NOI . Watch the cap rate as I have seen multiple properties where they are asking 6% cap on a C property that should be at a 9 or 10% cap rate. I am holding out for the right deal.
I have seen owners hide expenses to make the the cap look higher. You can find the issue in the Expenses. If the expenses are lower than 40% then they got lucky one year, their stuff is run down, or they are not including some hidden expense that can kill the deal.
Don't have much advice for you but would love to here what others have to say.
I've only talked to a few places in Knoxville on the phone, more because I was curious about costs and how it worked. Don't have a prop manager now but will consider one in the future.
I was supposed to meet with Jacob Lei Prop Mgmt and we set a time to meet at their office. Arrived early, no one was there (mid-day on a weekday too), waited about 30 mins after our meet time and called them a couple times, no one ever showed up or answered. It was their office phone which is the same supposedly 24/7 hr line for tenants to call with issues. To their credit they called me about 30mins later to apologize. A few months later someone from Jacob Lei talked at the local RE meeting and seemed quite competent though. Not sure if I it was a fluke or if they are unavailable more than you'd like someone to be when you are paying them to be on call.
Hi @Ted Faust , what RE meeting did you go to? I haven't found a good REI group in Kville except for the one on meetup that charges a steep fee just to attend.
@John M. It was the Knoxville real estate investor club, sound like the same one that you are talking about. They do have a very steep fee in my opinion, I'd go much more often if it was a more reasonable rate. As far as I can tell they are the only active club in town though which is a shame.
If anyone knows of other groups in the area I'd love to hear of alternatives!
Thank you for the advice.
I have been reading through sold data from the past few months recently.
Your observation that prices are too high is confirmed by the prices taken.
I am seeing many owners that accepted half of their asking price.
I presume they are largely accepting prices that clear their debt.
I can't imagine they have equity left after such a haircut.
Good luck with your search.
And, trust but verify.
Thank you for sharing your experience.
Your start with Jacob Lei sounds tough.
If you do come across quality it would be great to hear about.
Thank you again.
It is a shame to hear about the steep fee for attending a REI group.
I find they often do so to keep out the riff raff but it dissuades new investors, too.
Are there enough BP members locally for a meet up?
@Joshua Dorkin and @Brandon Turner seem to be profiling on the podcast shows the range of informal meet ups happening across the country.
I am hoping to visit one in Chicago that @Brie Schmidt is arranging later in the year during a visit I have planned.
Am looking forward to meeting BP REI folks live.
@Jonathan Cope - There are plenty of people for a meetup in almost any mid-sized city here in the US and likely most major cities globally. For example, here's a tweet from this morning from one of our members in Seoul, South Korea. If they can do it, you guys can get folks together too ;)
Thank you for the Tweet of BP Team Korea.
My family and I live in New Jersey.
There are terrific folks to meet up with there such as @Matt Faircloth.
For now, I am working in London, quite the commute, where no doubt you have many BP Nation members as well.
I look forward to joining a few Meet-Ups during my travels, whether in the US, Europe or India.
Knoxville is new territory for us but we are enjoying learning about it via BP and otherwise.
Thank you again for the Tweet and the community,
@John M. .
Maybe you consider starting up, or finding via the forums, a BP Meet-Up in lieu of the pricey REI session you've found otherwise?
Seems worth a try.
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