All Forum Posts by: Luke Grogan

Thanks, Benjamin Pekarek ! I appreciate the offer and you reaching out. I'll give you a shout.

Ben Rao Awesome, great suggestion. Looks like a great combo. I appreciate your thoughts and offer to chat. I will give you a call.

I have a couple of SFR that are over 1000 miles away and I have self managed them. Two keys for me: get to the unit, bulletproof it, handle everything in advance! Use high flow toilets, snake the plumbing, replace the water lines that drain to the sewer if they are old, tile or cheap/sturdy laminate, Landlord Locks, or easy to re-key locks and get them solidly rent ready.

Work with a few realtors to list your property, but once they past the sniff test, i.e., 3x rent as income, no current collections, etc., etc., then I interview them, get to know them, ask any question that comes to mind and make sure they completely understand that I want my tenants to love their home and feel totally comfortable, but if rent is late, I will never waive late fees (but I have twice for circumstances that required flexibility) and I will evict at the first sign of a problem. It's not personal, it's just how I HAVE to run my business.

Choose a realtor to list the properties and let them know that if there is a problem, part of their fee means that you will also call them to post the three day notice and help with any potential eviction as well as turn. Have them walk the tenants through the pre and post rent inspections and stay in touch with the agents periodically to keep the relationship if you need it. 

From there, you will pay higher maintenance costs unless you are able to get good handymen recommendations from your RE agent. It's very doable, but will cost more at times. But, you save money, if you buy right you make more money, and you can afford to make sure most of the potential problems are handled up front and if you screen tenants, you will be fine. Just know a headache will eventually come, but a plane ticket isn't that much in the grand scheme of things...

@Valentina Naumenko @John Kent Thank you for your thoughts and offer. I appreciate it and will stay in touch.

@Mike Dymski What an insightful answer. Thank you for taking the time to respond and I really think you hit the nail on the head. This space in the mid-sized apartment space seems to be a "tweener" where some of the SFH guys want it and say they can manage it - which they very well may be able to, but it's not their core and hence not their most cost effective business model, as you identified.

One challenge for me to going bigger because I will not be able to get the required 25% down payment for anything above about $3.5MM. It's possible that I could repurpose a MF, stabilize the rents, flip it, then go larger. Even without flipping, that's what I'm mostly looking for, but I hadn't thought about the end game being a larger MF to really benefit from the scalability of them. Thanks again for the response. It's good food for thought.

I am seeking to purchase an apartment building in the 6-50 unit range in the central Florida and coastal Florida areas, primarily in areas of Tampa and Brevard county, but also looking in the Orlando area. I've found a few that I like, but if they are not in Brevard, I'm not going to be able to manage them or transition them to a manager. Any suggestions for choosing a good multi family property manager? I've gotten a few referrals and have interviewed a few, but I don't necessarily know what I'm looking for in a manager that can handle a property with 25 units. Would you use a PM that does single family and small MF, like 2-4 units or would you look for a more "corporate" structure? What are your non-negotiable, must-haves in a MF PM? Finally, any suggestions in Tampa, Orlando, and Cocoa/Merritt Island?

Interesting question and one I've been considering. I've gone back and forth in it a bit, but I am thinking that good cash flow deals and the right financing is the key. Cash reserves is a big second to that, but I think another recession or bubble bursting will not erase the need for good rentals, but create a stronger demand. The one scenario I am trying to figure out is if A class MF in A class areas would provide a bit of a hedge to the rest of my B/C class SFH or if I should get B class MF. Oddly, it seems that the spread on the cap rates are not that significant in my target markets.

Great topic and I'm curious to hear the responses. My first reaction would be to go with number one. As you've identified, and probably put first for a reason, he's old school and likely appreciates the connection and a personal approach. Do you general DD and know your range, but find out what he wants: heritage/legacy for his kids, someone to take a real, genuine interest in the property and continue his tradition if excellence (ego), or just move on. From there, you should know what he wants and be able to tie it up for at least 4-6 weeks to do your own DD. That is always my preference and you'd be surprised that you'll still have the inside track, even if he calls someone else.

I typically use Behr Coliseum Marble (PPU8-16) and a bright white trim on the interior and I'm looking for suggestions on exteriors. Not sure if the exterior and interiors need to be matched, but figured I'd post what I use inside. On lower end flips, I just ask my painter to mix whatever he's got to make an earth tone; whatever is cheap, but good enough. With a couple houses coming up, I wanted to put a little thought into it. I know it can be very dependent on the neighborhood and location, but curious if any of you have go-to's that you use. I'm looking at a color by Sherwin Williams called Backdrop (SW 7025) with Extra White trim (7006) with accents if Black Fox (SW 7020) and a hue of a blue grey for the door. I saw it on a house my sister did, so I know how it looks "live." Any thoughts on the color combo? Any thoughts on your standard choices?

I need to have a roofer placed, gutters/downspouts replaced, some general carpentry, windows, and exterior paint. Can anyone recommend a great roofer and a good general contractor that can handle windows, paint, and general carpentry? Thanks!

I would check what your lenders requirements are for insurance just to make sure the coverage is correct. My assumption is the current owner would have a lower replacement cost, so ask your lender and then get your quote from your agent. A block off the beach should have higher premiums. Speaking of premiums, a good general liability is a must for rentals. Make sure you factor that in and get the right coverage.