All Forum Posts by: Craig Garrow

So, I recently had a conversation with a client of mine about her wanting to sell her triplex. She currently lives in one apartment with the two other apartments rented out, bringing in $1,125 not counting her apartment. She expressed an interest in selling it, but was worried that a new purchaser would buy it and charge her a higher rent than she is willing/able to pay, and leave her with nowhere to go. My thought is to offer her to sell it to me on a lease option. Maybe $87k, with $2k for the option to purchase for $75k in 3 years. I would make the rent payment due to her the same as what I would charge her, essentially letting her live for free and I would assume 1/12 the taxes, insurance/water/sewer charges per month and leave me with a net profit of about $350/month after maintenance reserves and expenses. Plus I would handle maintenance and repairs, etc. Now, I feel like I'm about as low risk of a buyer as possible for the area, but is it safer for her to do something like this with me than to give me a straight mortgage?

Oh, wow! I'm fairly certain it used to be $200 per month regardless of size. That makes the choice easy!

How much does Buildium run for a smaller operation? I manage about 35 doors plus the storage.

I'm looking for a software that I can use for accounting for my Property Management company, as well as rental properties that I manage, and my own personal rentals; one of which is a 19 unit mini storage (not sure if that makes a difference?). Right now I'm thinking Quickbooks with the right templates? Also looking for something that I can send invoices out with as well! Thanks in advance!

Scott Meyers

Hey, Scott! I've been hoping you would chime in! I actually messaged you on LinkedIn!

It's self managed by the owner. Not a big deal, because I own a property management company, and have the systems in place to handle it. I planned on taking 5% in management fees.

Seller is asking $75,000. It seems far off to me. There have been three sales in the last five years at an average of $20/sq ft. At full occupancy on his current rents, it comes out to $11,424.00 per year before expenses. They are also willing to finance at a 10 or 15 year amortization at 6% interest. My gut tells me $40,000 to $45,000 judging by the cash flow and the work I'm going to need to put in to raise rents, etc.

I'm just getting out of a meeting with the owners of a mini storage here in town, and I just wanted to see if I could get some help analyzing this: 2000 square feet, sits on 2.5 acres. Unit mix is: 8 - 5x10 that currently rent for $32 12 - 10x10 that currently rent for $45 2 - 10x20 that currently rent for $78 The ugly part is that they rent two 5x10s for the price of one for two people, and three 5x10 are currently vacant. One 10x10 is free in exchange for snow removal - I have no problem with that. Taxes are $2,200 and insurance is going to run $350.00 per year.

I'm just breaking into the Vacation Rental game - looking for any of the VR vets out there who would be willing to let me pick their brains?!