All Forum Posts by: Bruce Scannell

Hi @Bryan , my partner and I have over 100 units in Wayne county that we self manage after trying and interviewing many PMs in the area with little success. We have decided to create our own PM company coming from the perspective of an owner first. We have been doing all the background work to prepare, building the systems and whatnot and are looking to sign up several VIP clients in the next month at a discount. I’d like to talk to you more about your experience with PMs in the area and what it is you’re looking for. 

Bruce

Hey @Frank Mourad, love the spirit! I see you're living in LA, why are you focusing on SE Michigan?

Thanks @Deanne Moore, getting there. The PMs that I have used and interviewed weren't necessarily terrible, just weren't a good fit for me. I don't want to openly criticize, but if you want to DM me I can give you more info directly. Good luck!

Bruce

Hi Deanne,

Congrats on your purchase! Is your property in Detroit proper or the suburbs? I see you live in CA, as do I, but grew up in MI and own/manage 57 units in Wayne County, do you have connections over there? I have tried a couple PMs in the area over the years but have ultimately done it myself, by proxy. I’m interested to hear your story, and what’s your experience with other PMs in the area?

Bruce

Thanks @Rosston Smith, appreciate the post.

@Kristopher Hanks, I current self manage my SFRs and duplexes, I do have a good support team there, however. For this building, there is a live in manager that gets compensated with free rent. They have been there for a long time and know the building and tenants better than anyone, so I will keep them and access their value for the first year or so. So far, I think they are worth it and plan to keep them for the foreseeable future.

@Justin Young, got it. Well, I would start with a place you have some familiarity with, if thats possible. Plan a trip there, meet with 3-5 realtors and 3-5 managers. I would meet them at existing properties, that you have done some high level analysis on, and see what their take is, and at the same time tell them what you're looking for and why. I suppose if you don't have a place like that, the same would apply for a new spot, but maybe spend some more time with these people touring, and asking more area specific questions. 

It can definitely be done, don't be discouraged, but don't be too excited that you aren't open to the possible red flags...

I understand that @Greg C., I've been in your shoes, but at the same time, I could almost write a book with all the "details", so if you ask some specific questions, I'll gladly answer as best I can...

@Sarah D., yes and yes, depending. After the holidays, we will start the process of offering new leases to the tenants, building by building. Currently the 2 bds are the most under market, so we will start with those. The leases are all month to month, so it allows us to "easily" transition the tenants. I plan on offering the current tenants the opportunity to stay by raising the rent by only $25, but also instituting a RUB system, making them pay for the utilities. If they decide to stay we won't touch the unit, minus new windows possibly. If they decide to leave we will refresh the unit and raise the rent to just below market, while also instituting the RUBs. I think we should be able to turn each of the units in the next 2 years. At that point, depending on the market, we will either look to refinance or sell. I am the same with all my properties, if they have positive cash flow, I would prefer to keep everything, but if the debt service is too expensive, then selling is definitely an option.