All Forum Posts by: Igor S.

I will be closing on a 6-unit apartment building at the end of the week and I found myself scrambling to put together a list of things to do post-closing. Please chime in with any suggestions or comments!

So far:

1) Notify tenants about change of ownership

2) Collect information about tenants (who lives in each unit, ID's etc). The previous owner had non-existing record keeping.

3) Change main entrance door locks. I have no idea who else had access to the building (previous property manager, etc) so want to stay on the safe side.

The previous owner/landlord has owned the building for over 30 years so I want to make sure that this change of ownership goes as smoothly as possible.

I just noticed a new website sparkrent.com that seems to offer a very easy way of collecting rent via ACH deposit. It allows you to assess any late charges and also sends out email reminders. I assume this wouldn't be for everyone, but looks promising and inexpensive.

Has anyone tried one of these services? Please share any issues or success.

Christian Carson, I am in the same situation. Own a 6-unit in a great location with premium rents. Only problem is, there is never another one for sale. I've scoured the county tax records and am planning on contacting the other owners to see if anyone is interested in selling. Haven't figured out the best method for this, phone call? letters? etc

Joe Holloway, if you're willing to roll up your sleeves and get some demo out of the way along with minor repairs and paint, you can get it done for under 10K per unit.

Have any of you who own or owned multifamily buildings experimented with providing outdoor storage space such as a shed or lockers? I am considering making something like this available for a small monthly fee for the tenants that wish to store bikes and other large equipment.

If possible, see if you can work with the bank the building is currently financed under. I am closing on a deal in a few weeks this way. Saves on a lot of costs, especially if dealing with a local bank. They already know the building, have the history behind it, know what to expect, etc.

Current rates here are:
3yr 4.25%
4yr 4.75%
5yr 5.25%

The house sits on a slab, so pipes are in the concrete and not that easy to access. It would probably be easier to run new pipes not underground, but through the ceiling, which would mean opening up a lot of walls and ceilings. Rough estimate 8k-10k.

Jon Holdman, excellent suggestion regarding the air compressor!

Last night I had an inspector come in and test the pipes for leaks using this method, and we found the property wasn't winterized correctly. They left water in the pipes and since the furnace was broken, pipes are frozen and water tank is also frozen. We're going to back out of this deal bc bank won't budge on price.

Again, BIG thanks for the idea and this should be a lesson for others so you're not stuck with a big plumbing expense.

Jon Holdman, what financing options would you suggest? I have previously bought REO without issue, but the property was in better condition.

I'm planning to fund the rehab with cash, but still need some sort of financing.