All Forum Posts by: Jacob Heckford

Yeah my business partner and are in disagreement on putting down a interlocking Vinyl plank floor or ceramic tile. I understand that ceramic tile may last longer but it takes more time and labor cost to put down. I think vinyl plank is just as good for the amount of time it takes to put down. 

I'm buying a 16 unit apartment complex and looking to slowly renovate the flooring in each units. I have an idea of what I want to do but was curious to see on here what everyone recommended? Thanks in advance!

Yes. I'm taking out an additional 30K on the mortgage on this property just for this reason. I feel like I will need it for unexpected expenses that hit me in the face. 

Would you raise rents as soon as possible or do it gradually as reserves build up? 

My first initial plan is to send out notices to each unit letting the tenants know of the rent increase. Along with setting a start date of increases 3 months from notice. I feel like that is a fair way to do it and gives them enough time to find a new place or budget the increase.  

Looking for Pointers on Multi Family "Dos and Don'ts"?!?

My business partner and I are in the process of closing on a 16 unit apartment complex. I believe that the biggest problem with this property is the potential of tenant turnover. The rent per unit currently are way to low for what the properties can get. The Units are 1bed/1bath units that are currently renting for $450 a month and we know that they could rent for $600.00 easy.

Our plan is to raise rent slowly over time to max the potential of this complex. Meaning Empty units currently will be rented out at $600 immediately and existing tenants will have their rents raised over time according to current leases. It will be a constant battle but a battle that I know will have a greener pasture on the other side.

I bought my first personal rental in a small community outside of Ruston, La (College Town). This is a solid 2bd/1ba rental that I bought for 70K that appraised for 85k. Everything is great about the house other than the cashflow isn't much. A couple days before I closed on the house I found out that my insurance and taxes where not escrowed into the mortgage and it completely screwed up my analysis on the deal. I made a decision to go through with the purchase with thoughts of refinancing the property at a later date.  

Now that its been 4 months I'm not sure that's the best idea. I am looking at having to pay my mortgage down 20k to lower my note to where I want to be. My thoughts now would to find another deal and make a down payment on that house with the idea of pulling a LOC from the new house to pay down the mortgage of the cash flow issue of my 1st property.

Let me know your thoughts and creative ideas:

Please let me know your thoughts on how you would handle this situation.