All Forum Posts by: Casey Miles

Hello Everyone,

I think it's time for a change.

I really want to keep my post on topic. If you have questions or want to debate CAP rates, cash on cash, etc. please shoot me a message and we can go from there.

A little history. I started investing in RE in roughly 2009 in the Phoenix market as that's where I'm from. I bought property that according to me was a "deal" at the time. I literally have property spread out all over the Phoenix market.  I didn't give much thought into capitalizing on my resources by keeping investments to one area. I have roughly 10 properties equating to 18 residential doors and 4 commercial office spaces. I've always had the goal of buying more and building my wealth via RE. Keep in mind that wealth can be $ or wealth in time. I don't need to be "rich" in $ but I want to have enough to support my current life style which I think is modest for my wife and I AND not have to work for The Man any longer (I still work a 9-5)

As my post indicates, conservatively after commission, etc. I think I have +/- $1mm in equity not including my personal residence. I make roughly, after PITI, maintenance, vacancy and CAPEX roughly 56-64k a year and that's with me managing everything. If I had a management company take $20k away from that. Now I know I'm gaining in equity every year due to growth so obviously my IRR is better than what I'm portraying. However, for right now, my money isn't working hard enough for me. I currently still work full time AND manage all my RE. When I started investing CAP rates were @ 9-10% and COC was 20-25%. I know I'm not going to see that now but this 3-5% is for the birds.

Time for a change! I think what I want to do is sell everything and 1031 the equity into 1-2 Class B/C apartment buildings. I want to stick to apartments, especially B/C properties, because I feel it's a safer investment during economical downturns. This seems really tricky because of the timing of selling everything. I guess I can make all the contracts 1031 contingent so they all close fairly close to one another? My goal is make a cash on cash of 12% AND have at least 3% year over year growth in property value (20 year average) AND not terribly risk my initial investment. Am I trying to find a unicorn? Syndication makes me uneasy just because it seems like you could lose everything? At least if I buy the property myself (or JV) I still always have the property if things go south. Plus I'm told I can't 1031 into a syndication.

I'm open to suggestions and brainstorming. I learned a lot from this forum and here I am coming back to the well. 

Thanks in advance!

Casey

Unfortunately I'm going to miss this one! I'll definitely try to make the September meetup. Thanks @Michael Hacker for thinking about me and @Travis Shelton for organizing.

Take care,

Casey

In AZ you have to be a RE Broker to be a property manager. The exception is managing your own properties.

I could do that but generally like to work off of referrals first.

Hello,

I'm looking for an independent handyman that does good work, has a vast skill set from remodels to re-keys, who is reasonably priced (not cheap), I'll pay a fair rate for good work. Appearance and customer service are a must. Please reply with firsthand knowledge only.

Thanks in advance everyone,

Casey

@Ash Patel, You're right about being jaded by the last owner. Shortly after closing I met with the office manager. The landscaping wasn't being done regularly, etc. I quickly got that addressed the day we closed. I'm now dealing with their facilities manager so it's probably a good idea to reestablish the relationship. 

As soon as I get back home I'm going to have to reach out and do lunch. Thanks for the reminder that this is a relationship business as it is anything else.

I recently purchased my first commercial property. 2 weeks ago the tenant reached out regarding a roofleak. We've had some decent monsoon storms and it has backed up roofing companies. I decided to have my handyman patch the roof and do the drywall repair. The damaged area is roughly 12"x12". I wanted to complete the roof repairs before repairing the drywall for obvious reasons. Now the tenant is requesting a mold abatement company. I know the damage doesn't require abatement. How do I address their mold concerns (without costing me a mini fortune which an abatement company will gladly charge) When do you call in abatement company and when do you just cut out the area and repair. Thanks in advance, Casey

I'm an agent but I'm not really plugged into the commercial network. I recently bought a small, single level commercial building and I have an inherited vacancy. I've got it on the MLS, Craigslist, and on LoopNet (the free version). I've had a couple bites but haven't landed anything.

I'm looking for someone who really knows their stuff here. I don't need someone who is going to do all the things I've already done and then want commission when 6 months down the road we get lucky via someone seeing a sign on the property.

It's currently configured as a DRs office, 1500 sf. I'd obviously do TI work but have held off because I don't want to do paint/flooring and then someone wants walls moved. The space is located in Mesa.

Please reach out to me and I'll give you more info.

Thanks,

Casey

How do you guys vet your prospective commercial tenants? Do you use a service? I have a small local wellness center interested in a space I have. I assume they have an LLC. I just recently bought the property and my experience in vetting tenants is purely residential. I assume you do credit, criminal and eviction on the partners? What if it was a larger tenant? Surely a large business has no interest in having to have their partners guarantee the lease?

Thanks in advance,

Casey

Ditto on the 7/25. No prepayment penalties?