All Forum Posts by: Craig Garrow

I'm looking to set up my entity this summer for my PM business, and wondered which route to take? Any feedback? Thanks!!

Thanks for the replies! I intend to keep the rents the same after I separate the electrical. I realize this will likely cause one or two of the tenants to leave, but I've got a little cash cushion to cover me for a month or two. This would give me plenty of time to make any upgrades and refill the apartments. There has also been a plot twist. I just got a copy of an appraisal that was done two weeks ago that came in at $68,000. While I realize that my initial plan of buying this for $42,500 is now highly unlikely, I still think I can get a really good buy on this property with favorable terms, and now some equity apparently as well.

By the way, thanks to those who have replied! Anybody else have some insight??

I own my own Property Management company, so I'll be self managing. And the repairs are going to be done gradually as the tenants move out. The property itself is in a decent location, definitely not the best or worst area of town. My plan is to furnish the smaller apartments after rehab and try to get $550 across the board for all 3 apartments. The 5% reserve cash I'm hoping will cover any small repairs, and since I'm self managing, I may increase that amount to 10%. If everything works out, I should be able to buy this with about $450-$475/month in positive cash flow after expenses.

Hey, everyone! I'm looking to pick up my first apartment deal here in town. It's a small triplex, one two bedroom apartment that rents for $500, and two one bedroom apartments that need $2,000-$3,000 worth of rehab each, but are currently rented for $485 and $475 and the owner currently includes their electric, which I plan to have separated, so I am not factoring in a monthly electric bill here. I'm hoping to pick this property up for $42,500. Rent roll is $1460/month. I'm going to shoot for a short term seller financing deal with $3,000 down, amortize it for 20 years at 5 percent, and probably a 3-4 year payoff. Property taxes run about $2,800 per year, and it will cost me about $480/year for trash pickup, and $600/year for snow removal. Water/Sewer will run about $800/year, property insurance will be about $1,500 per year. I'll maintain the lawn myself, and set 5% of the gross rent aside per month in a reserve account. Let me know what you guys think!

I'm hoping to pick this property up for $42,500. Rent roll is $1560/month. I'm going to shoot for a short term seller financing deal with $3,000 down, amortize it for 20 years at 5 percent, and probably a 3-4 year payoff. Property taxes run about $2,800 per year, and it will cost me about $480/year for trash pickup, and $600/year for snow removal. Water/Sewer will run about $800/year, property insurance will be about $1,500 per year. I'll maintain the lawn myself, and set 5% of the gross rent aside per month in a reserve account. Let me know what you guys think!

Thanks for all of the great replies! I definitely want to be fair to the current tenants. It makes the most sense to just wait them out and repair the units after they move, since the damage is already done and the property makes money.

It's my understanding that the current owner doesn't have a written lease agreement, and they're month-to-month, for what it's worth!

Shawn Cunningham, with the Cunningham Group!

Tammy, drop me an email at [email protected]. I'm in my second year and have some great resources and people I can put you in contact with to learn from!