All Forum Posts by: Mark Frattini

George,

My property management company also charges 10%. I used 12% as a buffer for when a tenant vacates and they charge a full months rent when a new tenant is placed. 

This is my first property in Dayton and from what I am told most property managers in the area use anywhere from 5-10% vacancy rate. 

The property is located in Dayton Ohio. 

I think I will bill them as you suggest and build the expense into their rent and settle up as necessary. 

Wow, lots of really great ideas. Thanks for the responses. If it comes down to an eviction this is the most difficult time of the year to re-tenant the property due to poor weather (Michigan) and holidays. It wouldn't strain the finances as the other tenants rent will cover the expenses however it might be vacant for approx. 1-3 months. This is also a unit that can take a bit more time to rent out due to its non traditional layout. Maybe a property type I would not purchase again. Having said that I understand what a lot are saying about sticking to the lease and not having the tenant dictate the terms of the lease agreement. I think I would be okay with a dog in this unit and this might be a way to get a bit more income if I decide to let them keep it. I might do as others suggest and make sure she gets rental insurance, charge a "pet rent" of at least $25/month and possibly $250 security deposit/cleaning fee. I'm waiting to hear back on what type of breed and how big of a dog.  

I’m under contract to purchase my first 6 unit commercial deal. I wanted to get the community’s opinion on my analysis. Purchase price: 315000 5.9% CAP B class property 25% down payment 5.25 interest rate 5/5 20 year amortization Expenses Vacancy: 8% Property tax: 7,000/year Insurance: 2,000/year Property management: 12% Maintenance: 5% CapEX: 5% Utilities: 325/month Landscaping: 50/month Loan payment: 1,592/month Income Gross rent: 3,485/month Storage: 200/month I will basically break even using the above projections. Not ideal. The property has a newer roof, no central furnace (baseboard heating), and wall ac units. Units are in good condition with the exception of one which needs a total refresh. CapEX should be low for this property. After taking ownership of the property I plan to slowly increase rents up to a total of 4,050 and bill the tenants back for water. This makes the property a 8.7% CAP. This will increase the cash flow to around 114/door. I will also increase the storage units rents to 250/month. Do my pro forma numbers appear accurate? I’m more familiar with analyzing residential 2-4 unit deals in C class neighborhoods. Thanks for any tips, tricks and suggestions.

My property manager contacted me to let me know a tenant in one of my duplexes has been given a dog. They asked me if I would consider collecting a 200.00 pet deposit and 25.00 a month for pet rent or if I wanted to evict them. It’s a c class property with mostly hardwood floors. I’m waiting to hear back on what type of breed the dog is. If it’s an ‘aggressive ‘ breed I might ask them to get rid of the dog or start the eviction process. What’s everyone’s thoughts? In a perfect world the tenant would have asked first but the dog is already in the house. Does a 200 pet deposit and 25 pet rent a month sound fair? I’d like to keep the tenant in place and not deal with eviction and and temporary vacancy.

Thanks for everyone’s help. I was able to find a local lender to assist with this deal.

@David Scherer Thank you David. I will try reaching out to him next week.

Hello people of BP,

I have a 6 unit under contract in Dayton Ohio and I’m having trouble finding a lender who will consider lending to an out of state investor. Normally I’d have all systems in place before offering but I jumped on this one before getting the chance. 

Here is my list that I’ve called so far. Still waiting to hear back from a few of these. Does anyone’s have other recommendations that I can try?

Spring valley bank

Chemical Bank

Guardian Savings Bank

Valley Central Bank

First Financial 

Savings Bank in circleville 

US Bank 

First national

Thanks!

Hi John,

The comps were in the 40s and the house appraised for 40,000. The house was listed for 45,000 and had been on the market for over a year. After some negotiation they accepted 35,200. I tried to get as close to a 20% discount as possible. Given the neighborhood and tenant class I am not sure what type of value adds I would be able to do but I will give it more thought. The previous owner rented both sides for 400/month. My property manager and I agreed that we could bring rents up to 500 downstairs and 600 upstairs. 

Next I am considering another multi and want to be in a solid b class area. I am also considering partnering up on a 26 unit apartment complex.

After a few years of reading, researching and listening to podcasts I finally purchased my first investment property in Michigan. Below is my analysis on this duplex. Please let me know your thoughts and if I missed anything. Purchase price: 35,200 Repairs: 3,250 Duplex b-/c+ neighborhood Yearly PITI: $2,952 Water: $1,200 Electric: $720.00 Property management: $1,320 Maintenance: $1,200 Vacancy: $1,200 CAPEX: $1,020 Total expenses: $9,612 Gross income: $12,000 NOI: $2,388

Hey everyone, Long time lurker first time posting. I've been reading and researching real estate investing for over a year and I'm finally ready to start buying. I have listened to every podcast and read several books related to real estate investing. I live in Los Angles and moved here from Michigan about 10 years ago. I purchased my primary residence here in LA about a year ago. I'm looking to invest in multifamily properties (1-4 units) using the buy and hold strategy. Im focusing on south central/south west Michigan as my family still lives in this area. Not so much looking for appreciation but properties must provide decent cash flow. I'm currently analyzing properties in he battle creek, Jackson and Grand Rapids region. Any referrals for the areas mentioned would be much appreciated. I'm looking for agents who are comfortable with out of state investors and will need a solid property management company as I will only be able to visit the properties a few times a year. Looking forward to purchasing my fist property! Thanks everyone