All Forum Posts by: Andrew Ramler

@Andrew Herrig

@Tim Tye

I know this is super old, not sure how I missed all the responses. I have had a great experience with my 4 (now 6 unit, long story there) unit deal. I still live in one of the units and really enjoy my tenants and neighbors. Just like any real estate investments, you have to be aware of the area and the numbers… but I would never completely write-off small multis. My mortgage is 1500 and my gross rent is $4500!(that includes me paying $750). Also recently purchased 2 duplexes a few blocks away, 700 mortgages with $1900 gross rent for each duplex(10k reno was done). I just don’t think you can find that kind of cash flow on a SF in good area. I am looking for more if anyone is selling in the Oak Cliff area of Dallas.

@Sam Leon The standard TAA lease most folks use in Texas makes reference to "community policies or rules" and the tenant agrees to abide by them. I see it as an easier way for the tenant to understand my expectations compared to reading every line on the lease. I simply think it will eliminate brain damage in the future.

I completely see what you are saying with smoke detectors, however the way I handle it still keeps them in working order but takes the time and expense off me. If I let the tenant know I am coming by for an inspection and I expect the directors to be in working order or there will be a replacement cost then it's almost always going to be done and if it's not you get paid for your time. If you take responsibility for them and there is a issue during a fire, you are more likely to be held liable, if it is clear it’s the tenant responsibility, they would be held liable. That being said, the owner should still being doing his best to assure they are working.  

Thanks James! Defiantly will have some clear guide lines for them. 

Thank you Bill! It’s a great idea looking into HOAs.

Richard, I completely disagree with you regarding limiting your rules to the lease. In my experience most apartments have a “community rule book” that comes with the lease. The better you can communicate your expectations to the tenants up front the fewer problems you will have down the road. In regards to the letting me know when they are headed out of town, 3 days may be over kill, but if a tenant is gone for an extended period I like to turn the water off and drive by a few times to check in and make sure everything is ok. It may seem intrusive, but I am dealing with very sophisticated tenants and they have appreciated it as far as I can tell. Smoke alarms are the responsibility of the tenant after they move in. I do a walk though inspection and if one is not working I charge the tenant a trip charge and the price of the battery, the way you are going about it decreases your cash flow unnecessarily. 

I own a fourplex (house hacked) and am about to close on 5 duplexes. I have been wanting to make a property/tenant rule book for my property and now that I am buying the duplexes I really think it's important. 

I started and quickly realized I would need help! Below is my start but hoping to get some feedback on what others have done. I know some of this is covered in lease but never hurts repeating with tenant. Thanks for the help!

Outside

No personal items should be stored outside without management approval

Trashcans should be stored behind house

Driveways should never be blocked

All automobiles should have current inspection and registration and be in working order.

No inside furniture should be used outside

No mortifications should be made to the building or landscaping without managements approval. (Paint, doors, lights, windows, fence, ect…)

No animals should be left unattended outside.

Inside

Check and Replace Smoke Alarms every 6 months

Keep candles in a sturdy holder on a level surface, away from combustible materials and out of the reach of children or pets. Blow them out before leaving the room

Notify landlord when away from unit for more than 3 days.

Keep portable heaters at least one foot away from anything that can burn (including curtains, furniture, and you)

No painting without approval from management

No smoking inside

All furniture should have wood floor protection on feet. 

PS:tried searching for this and couldn't' find a thread, please just link me up if one is already out there. 

Hey BP,

I am looking at a Dallas deal with 4 resi lofts (3500sf) over 6200SF of retail. I have a good understand of multifamily but the retail would be new for me. I have listed some questions as well as the numbers below.

On retail tenant pays insurance and taxes in “nets” on top of their market rents. How do nets work anything stick out I should know (ie how are they distributed, legal obligations, do they raise through the lease?)

The retail is currently empty and divided into 2 suites; can I break them into more suites or make it one?

Can I turn retail section into resi or vice versa?

This is a vintage 1920’s property and thus has minimal parking outside of street parking. Is it possible the city will require me to have a certain number per sf?

Who typically handles interior maintenance and remodel on retail (landlord or tenant?)?

Any other red flags or major difference between resi and retail I should be thinking about?

Below are the Annual numbers

Price- 650k

Resi Income 38,400

Retail 74,400 ($12 a foot)

Nets 12,400 ($2 a foot)

Total Income 125,200

Vacancy 12,520 (10%)

Gross effective Income- 112,680

Tax and Insurance- 12,400 (nets)

Management 6,260 Self manage for 5 %

Upkeep 13000 (2% of property value)

NOI- 81,020

Payment $39,118 (25% down, 20 year term at 5% interest)

Cash Flow- 41,902

Cap Rate 12.46

Thanks guys! I do have one more I am looking at and the extra 12k would make it possible to do them back to back. I was just curious if others had tried this and if they had any tips or warnings of possible problems I may run into.

Sounds like I am good to go. If I attempt it I will let you guys know how it ends.

Thanks!

I may not have explained the situation well.

I approached the current owner and asked if they would sell. They said they were interested. We are close to agreeing on a price.

Lets assume we agree on 200k. Then I am going to ask if I can rep both myself and him and pay 212k. I will collect 12k in commission after sale. My goal is to basiclly put less down. Does that make since?

I would get 6 % of purchase price back in commission, leaving me with more cash for other deals.

Hey folks,

I am about to put an offer on an off market fourplex in Dallas. I have my real estate license and I am thinking that once we come to a agreed purchase price I will ask if he will raise the price 6% and let me be the agent on both sides. My broker only takes 10%. I know income taxes may take some but I intend to put a good amount of work into the property and at end of yea should be close to break even anyway. I have full 20% but already have my eyes on a few more deals i would like to do.

Does anyone see issues with my idea? Below see the deals details.

Four units plus a garage apartment.

Units 1-4 rents are 600 (in 24 mouth I think i can get them to 715)

garage rents 400

tenants pay all bills

Starting at 185K but willing to go up to 210K

Thank you for your thoughts!