All Forum Posts by: Gino Barbaro

look at a company called nwp if you don't want to do it yourself

You take a proportion of water, electric, garbage etc and split it among the tenants based on number of occupants or number of bedrooms. No metering and rather quick to implement. It only works if the rest of the market is doing it

Fortunately our market charges back the tenants 

if there is a demand then rents are low.  We try to raise one or two units depending on size of property per month. Our our 136 unit we were raising by building, about 6 per month as the leases allowed. Just make sure to add value, whether it is landscaping, painting, customer service, etc

All you're doing is raising to market. The majority of tenants will not leave for a nuisance 30-50 rent bump to market.  Ironically tenants know market rent better than landlords

Look into instituting RUBS if they don't have a program.   It just means billing back tenants a portion of the utility

Gino

@Simon Cox

Hi Simon

Look to see if you can get better terms with the bank.  I got these terms on my first deal, a 25 unit.  On my last deal, I am getting 4.25%, 25 yr amort and 10 yr terms.  The longer amort will allow you to cash flow better.

Expenses run around 50% of income.  Look at centimeter.com for rents in the area.  Hopefully, they will be a bit low and you can raise revenue there.  Look to see if there are any fees being generated, pet fees, application fees, late fees, etc.

What type of property is it ( A B C D). What is the cap rate you are purchasing it at?

Gino

@Robert Andrade

Hi Robert,

Fix and flipping will give you experience dealing with contractors and hitting deadlines.

Holding and fixing and flipping are two totally different models.  Holding is a way to generate passive income, create wealth and achieve a more favorable tax situation.

Fixing and flipping is a job, but we all have to start somewhere.  If you read a couple of fix and flip books, you will see how much work and risk it entails.  It is a great way to generate a chunk of cash for your buy and holds

Good Luck

Gino

@Matt Heath

Hi Matt

What is your strategy?  Are you going to invest by yourself or try to partner? If you use a partner, you can manage the property and get a management fee.  You can raise money and structure your partnership in countless ways.

It all depends on your feeling a to the size of the property.  I own a 25 unit and 281 unit property.  Economies of scale are huge wit larger properties, you can afford to hire a team to help with running the asset.  It depends on your mindset. Do you want to be a landlord or do you want to grow a portfolio.  Start in your comfort level, but don't be afraid to look at bigger properties.

Gino

@Alex Balan

Hi Alex

Why have you chosen 80,000 as your strike price for SFH?

Gino

hi david

I am not an accountant, but my understanding is that on the refi there are no taxes

When I sell, I am on the hook for the capital gain plus the recapture of the depreciation

That's why I am hesitant to sell unless I can perform a 1031 into another deal

Either way, I will be happy because of the appreciation

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