All Forum Posts by: Jake Didion

I acquired a 28 unit and had 3rd party management take over the day to day right after acquisition to understand the dynamics of a new market to eventually take over sometime in the future. Come to find out the management directs maintenance calls to other contractors and of course the contractors only get paid if they do work so they will find something wrong 100% of the time. As you can guess the maintenance costs are over budget every month so far and the management fee are at 11%. Over the last couple months I have a made the connections to take over management myself but I am contractually obligated to have them on for another 10 months. I want to know from the experience of this community what I am in for by taking the day to day management on myself? 

Lessons learned so far:

- If you want to hire a management company to handle day to day, make the management fee be performance-based so it benefits both parties. Example: If they have a vacancy they get don't get the percentage of the vacant unit/units in the management fee for that month instead of them earning a fee on the entire portfolio size vacant or not.

- Make sure the company you are contracting to manage has people within the company to oversee the maintenance that needs to be done instead of having them contracting another company to do the work. The independent contractor will always find something to fix and it will cost you.

That's all I got for now. Cheers!

Thanks Kwame!

Thanks Cole!

Between Whitehall and Bexley close to CMH

It's between Whitehall and Bexley close to CMH

Thank you Brandon! I would love to meet your team about a sponsor and/or affiliation for my real estate license 

It is a sub market of Columbus near Whitehall. I will hack again if I can find a similar deal

I invest in Columbus and Dayton currently

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $156,000
Cash invested: $11,000
Sale price: $156,000

4 plex

Unit A $650, Unit B $575, Unit C $475, Unit D $475

What made you interested in investing in this type of deal?

It was my first deal and wanted to find a good priced property where I could house hack for a year.

How did you find this deal and how did you negotiate it?

I found it on realtor.com and I negotiate through my realtor

How did you finance this deal?

FHA 3.5% down

How did you add value to the deal?

I evicted a tenant and rehabbed one of the units to live

What was the outcome?

Great, greatest decision I've ever made to get started in RE

Lessons learned? Challenges?

Don't try to be buddy buddy with tenants. They will take advantage of you.