All Forum Posts by: Charles Carillo

@Jaston Robinson

We rent our garages on a 12 month lease, similar to our apartments. If the renters do not want a 12 month lease, you can rent to them month-to-month at a higher rate. Some tenants we have for our garages pay all 12 months upfront and we give them an even better deal.

@Garrett Williams

You can find cash buyers in local Meetup and social media groups. Local REIA meetups are another great spot. Utilize List Source to find cash buyers as well.

@Francesco Perrozzi

We have partners that are foreign investors in US real estate. If you are looking for any; accountants, attorneys or lenders that work with foreigners, feel free to DM me.

@Joseph Waitkevich

I would start hiring a virtual assistant to start offloading some of the tasks onto them. Many tasks you will most likely want to do yourself but many of them can easily be outsourced to VAs for much less than you think.

@Cali Skier

This is a great question and more people should be asking this since turnover is the largest expense for multifamily landlords.

I like to compare my turnover against other similar properties in our portfolio. The goal is to keep the tenant in the unit for 24 months; if this is achieved we are successful at finding good tenants and managing them. Anything over 24 months is a bonus.

If you have smaller properties, I would shoot for less than 30 days from the last tenant to the new tenant. This can be less if you are showing the property when the old tenant is still in the unit. We do not do this but our downtime is usually 3-4 weeks. If you have onsite management for your large complex, your make ready time will/should be shorter.

Lastly, it is difficult to measure your KPIs with inherited tenants since you did not vet them and did not rent to them.

@Enante Exyt

When comparing rents you need to make sure you are actually comparing apples to apples. How close are the comps? Same age properties? Same exterior condition? Same interior condition? Same amenities? Same square footage? Are you comparing a unit on the 2nd or 3rd floor to one on the same floor? Have you visited the comp property, at least the exterior and the neighborhood? If they are apples to apples; it sounds like the property already has rents 25% higher than comps.

@Connor Mullen

The overall rule of thumb is usually an operating expense ratio of 50% for any size property. If the property is stabilized with adequate CAPEX; the ratio could drop closer to 40%. If when you are reviewing a property you see the ratio over 50% on the trailing twelve month, there is the potential to lower expenses. Older buildings or buildings needing major CAPEX might require a higher repairs and maintenance budget (normally this is $500-$800 per unit per year). This would then go back to normal once you have completed the CAPEX.

@Jay Senior

Small banks and credit unions are crucial to investors. I personally would start reaching out to these local institutions within a 45 minute drive of your target properties and see what loan products they have available to investors. You might be surprised. I have found some pretty amazing loan terms by calling around.

@Cory Kim

Creative financing options would include seller financing which you could propose to the seller which is easiest if they do not have any debt on the property and if they do not plan on reinvesting the proceeds. You could possibly do a "subject to" which is a slightly more complicated process. Both of these situations would not require or include your FHA loan and both would require a knowledgeable attorney. You most likley will be putting down more than 3.5% in these situations as well. If I was a homeowner, I would be requiring 10%-15% down to show me that the buyer was serious.

I personally would look for a property in my price range but speak to your loan broker and make sure they are counting the 3 other units as income against the mortgage; maybe you can increase the $300k number a little.

 Yes, if you want to pay 5%-8%+. I was responding to her post that she was looking for a "loan with decent terms."