All Forum Posts by: Chad Hale

There are at least three different people on BP all selling this same property.  Kind of interesting...

I've been happy with BJ from Welkley & Tucker

http:// www dot wt-cpas  dot com

Located in SJ just off 280 and Saratoga Ave.

No affiliation...

I like the many creative ideas and suggestions in this thread!

Hopefully, you can make some headway with the adjacent property owner.  

Resorting to putting up fake signs and trying to make it appear that change is coming when it may or may not be is misleading at best.  (Though the ideas are very ingenious and funny)

Go the extra mile and do it the right way without compromising your character.

Did a multi-unit, non-owner occupied, cash out refi, 30yr fixed 4.25% late last spring (2016)

In California 70% LTV.

@Rich Lopes  if you buy a property at a good discount that has been poorly managed and is in need of repairs.  Once you rehab, properly manage and rerent you can easily achieve the numbers @Account Closed has reported.  Of course following local rent control laws...

The most difficult part of this flow is finding/buying the property that fits this profile.  I am currently looking for such a property.

For example, this property hit the MLS last week and was under contract in less than one day.

https://www.redfin.com/CA/San-Jose/2145-Randolph-Dr-95128/home/1579342

Sorry Minh if I've spoken incorrectly.  Please correct my statement if needed.

Rent is due on or before the first.  There is no grace period.  The owner has lots of bills to pay too.

Late fee is $75.00.  If a check bounces, rent is now late plus a $25 NSF fee.  If multiple bounced checks, all future payments may be required to be money orders or cashiers checks.

I typically spend 45-60mins going over the lease in detail highlighting things like this.  I've had almost no issues getting rent on time.  Tenants when occasionally late include the late fee without my prompting.   They expect it and do not complain.  

All that said, there can always be extenuating circumstances but that is the exception not the norm.

In return, my part as a property manager, I provide good communication, take care of issues in a timely manner, provide safe clean housing, etc.

As both a property owner/investor and professional property manager here are some of the common reasons for utilizing a PM.  Everyone will place a different value on each of these and determine if a PM is worth it for them or not.

Here are some "value-add" items to consider for utilizing a PM. I recognize everyone will value each of these differently.

- No worries or stress for you regarding the daily running of your property

- You can focus on other things, core business, family, relaxation, etc

- Professionally managed units puts distance between you and the tenants. PM can be the bad guys.

- Liability protection

- Local to address issues / keep eye on property / enforce rules / verify any maintenance work is done correctly

- Manage the tenants

- Maintain compliance of current housing / tenant laws

- Handle all emergencies - no late night or weekend calls

- Monthly activity/PnL statements

- Provide tax withholding (required in CA for out of state landlords)

- Year end statements for taxes

- Tenant screening (most important thing regarding properties)

- Tenant selection

- Lease signing using professionally developed agreements (I use CAR and CAA in CA)

- Advertising / marketing property for lease

- Rent collection (proper legal notices served when late)

- Annual rent comparison and adjustments/increases

The worst things about "bad" PM's or any business/partner for that matter.

  - slow, bad, inaccurate communication

  - nickle/dime expenses

  - add overhead unnecessarily (eg mark up on bills)

I would find a new PM if you are not happy with your current PM and do not believe you can resolve the issues in a timely fashion.  

One additional thought, you hire the person not a collection of thoughts and tick boxes.  In other words a person of integrity and commitment will likely satisfy all of your needs and then some.

~Chad

depending on the exact location and condition of each unit and common areas of the property, your projected rents may be a little high?  Also, the rent market is softening a little bit.  The frenzy of the past 2-3 years is subsiding.  So you may want to consider that as a risk.  Also, check to see if San Jose rent control laws apply to you.  They just changed June of this year.  

You can ask the seller to give the proper notice to the tenants.  If the seller does, good the clock is ticking on their dime.   A smart seller would not do that in most cases.  A potential downside is that the seller does it incorrectly and creates a bigger mess for you to deal with.  I would know your states/local laws and hand hold them through the process.

I don't know PA tenancy terminating laws.  In California, a 30/60/90 day notice is required.  It doesn't matter when it is served.  IE doesn't have to be on a month / term boundary.  

Study up and act accordingly and appropriately.

PM sent with mortgage broker info

~chad