All Forum Posts by: Michael L.

Started my experience so far on this thread:

http://www.biggerpockets.com/forums/223/topics/167...

@Account Closed 

Hi @Brie Schmidt ,

Hmm...if we go old school and base my experience with this turnkey provider, I'd say a "solid B".  The two main complaints I have is the length it took to close on the deal (which they are working on) and communication.  We signed a purchase contract back in late July 2014 with an anticipated close in 2 months.  

The property management team does seem responsive to my emails and calls, which is very positive, but there have a been a couple instances where my emails are unanswered.

Costs Breakdown:

• Mortgage Payment: $872 /mo, which includes: Property Taxes: $168 /mo (est); Insurance: $67 /mo; Principal + Interest
• Management Fee (8%): $166 /mo
• Landscaping: $80 /mo
• Utilities: ??? - not sure yet as I haven't received a statement yet

The property I purchased is a completely rehabbed duplex built in the early 1900s.  The purchase price was $165,000.  Unit 1 is a 2/1 and Unit 2 is a 3/1.  Closing costs were roughly $5000.  25% down and the rest financed at 4.625% (30 yr fixed).

Unit 1 was occupied within a week of closing.  Unit 2 was tenanted within 4 weeks. 

Details:

Unit 1 - Section 8 - $161 (tenant portion) - $915 (85% subsidized)

Unit 2 - Section 8 - $1001 (100% subsidized)

------------------------------------------------------------

$2077 Gross Monthly Rent

Back in November (2014) I closed on my first REI property. A 'turnkey' duplex in Chicago. I went with a well-known turnkey provider and posted initial updates in this thread:

http://www.biggerpockets.com/forums/92/topics/1260...

There was a lot of interest and I had several BP folks approach me with questions and my experience with them, so I am dedicating this thread to my journey.  Categorized under 'Success Stories' because I'm optimistic like that :)

@Derrick Craig , awesome of you to go out there for Bill.

Hi @Alex Silang ,

The numbers posted on PFR's site is close to what I'm projecting:

http://profitfromrentals.com/properties/details.cf...

Although I little on the high side, since 1) I use 10% for maintenance and vacancies rather than 4%, 2) my insurance costs are about 25% lower (I shopped around) , 3)  closing costs were about 3K more than their estimates.

Just to update everyone, my duplex is completed rented (2/2) as of today.  Yay!  Small victory for me.  Now, I just need to see some rent checks rolling in.

As it has been mentioned previously, the majority of the tenants in PFR managed properties are Sec8 folks.  There is plenty of information on the webs about this, but there are pros and cons.  

My decision to pull the trigger with PFR was largely based on running the numbers.  There are some markets that offer similar returns (Philly, Jersey, etc.) but I was especially impressed with Alex and Chris fro PFR.  Before I bought, I flew to Chicago and got to tour the operations with Chris and see the neighborhoods for myself.  I've also spoken with Alex at length about various aspects of the investment and I'm confident in his ability to produce and surround himself with capable people.

This is a long term investment for me and I love the BP community, so I don't mind posting updates as I move forward.  Also, feel free to PM me as well.

@Larry Fried 

 I wasn't aware of the split up between the partners.  I have been working with Alex since the Summer.  I agree the renovations took much longer than expected.  One of my units is tenanted and there is some CHA headache with the other unit that needs to be cleared up before it can be leased.

@Account Closed 

Update: I closed on a duplex with PFR 2 weeks ago.  Waiting on getting tenants.  This is the real test in terms of how their property management performs.  The closing went rather smoothly.  There were delays due to items that came up during the inspection.  PFR strongly recommends their preferred lender.  Their rates are competitive, but not the best. 

The inspector I hired was really strict.  He said it was a slightly above average rehab, but that it should rent well as it is above the standards in the area.

Feel free to PM me with specifics.  Perhaps later I'll start a new thread to log my experiences...the OP of this thread looks inactive and the typo in the title is getting to me ;)