All Forum Posts by: Aaron Douglas

One thing that lead me to choose my PM was a very low fee for signing a new tenant. It just made me feel better that they were not profiting off turning tenants. This way it is in both of our best interests to screen for quality, hopefully long term tenants.

I just got an REO property under contract using the listing agent. It worked out very well. Originally, the bank did not want to budge on price. We got an estimate from a contractor for repairs and she started working with the manager at the bank. She even used the same contractor to get the bank an estimate to weather proof the property for the winter. After all was said and done, she was able to convince them to come down enough to make the numbers work for me.

I have acquired 7 units over the last 2 months. I did find a property manager that I feel good about, but we are only a month or so in, so time will tell. I did get a referral for another PM that I think would be good. Ultimately, the one I went with had a low fee for finding a new tenant, which I really liked. It just proved he wasn't in it to make money off turning tenants. Overall, vacancy rates seem pretty low (4-5%). I'm investing in lower end rentals, but returns are projected to be pretty good. There seems to be plenty of opportunities in Joplin right now. That's funny you mentioned Joplin is your wife's hometown. That's where my wife is from too, and her whole family still lives there. In fact, my father in law does all my inspections. I have 2 more deals under contract now, and quite frankly, realtors keep sending me deals that at least initially seem worth exploring. I'm just running out of capital. Let me know if I can help with anything.

Yes, maintenance and repairs. I'm currently budgeting about 23% of income for M&R and CapEx. That puts it at about $100 per month per door. I'm hoping this is much higher than necessary. I'm trying to stay very conservative...

Ben, I get that the numbers are probably inflated, but why run? (PS, I'm honored to have you comment on my post). David, thanks for the advice! For the numbers I've put together, it's looking like a 9-10 cap, which seems much more reasonable. I'll definitely be checking out the templates. Thanks again!

Thanks everyone. The seller is claiming a 15% cap rate. I'm trying to get their P&L and any other info they can share. I don't think this one will be around long, so I'm trying to determine what I can offer. It's listed at $475K, and I'm just assuming 50% for expenses. I can get pretty close on taxes and insurance, just wasn't sure about M&R on apartment buildings. I can't imagine it would be more than smaller units, but not sure. I suppose there will be more upkeep (landscaping, etc.) but maybe it's a wash? Aaron

Can anyone share any pointers on how to analyze a small apartment complex? I'm pretty comfortable with SFR's and small multi's, but I'm not sure if any of my calculations need to change for this property type. This is a very preliminary analysis. It looks like a good deal, just looking for some advice from someone experienced in apartments. 16 units under one roof Built in 1978 $7400/mo income Thanks, Aaron

BP, I'm currently evaluating an 11 unit deal. The current owner has divided up 3 SFR's into several units. What I would like to get some advice on is how can I be sure these conversions were done properly? Permitted, code compliant, etc? Would a general home inspection suffice? Thanks, Aaron

Can anyone recommend a property manager in Joplin, MO? I just got a deal under contract for 2 SFR's and a triplex a need to line up some options for property management. Thanks in advance!

Just realized I've been comparing my friends situation to mine incorrectly. His was a refinance where my opportunity is a purchase. Time to start fundraising I guess.