All Forum Posts by: Mike Sedlacek

With multi-family dwellings, especially if managing them yourself, one of the things you must account for yearly and every few years is replacement costs of appliances, HVAC systems, roof, locksets, etc., a budget for monthly/yearly maintenance and grounds keeping, eviction costs, monthly/yearly management fees and increases. A budget is crucial a real must or you may find yourself in a shortfall hard to recover from. You have to treat these buildings as a real business entity. Now figure your ROI yearly and even monthly and determine if that property was a good investment and not something that turned you into a glorified janitor. Just saying.

Some things to consider. Rule of thumb is a person should not take on more than 28% of gross monthly income for housing expense. At a rent of $850 monthly their income would need to be above $55,000 annually to comfortably afford housing. Where your property is what is the likelihood of finding lower rental housing so that the tenant would move into if you raise the rent to $850. Do you know the tenants income? If you approach a rental increase to $850 I would tell the tenant there will be quarterly increase to get to $850 making it easier on them instead of a next month sudden increase. Also add some type of upgrade to the unit to show a favorable exchange of value, increase rent due to this. That would make the tenant feel better and more likely to stay because you showed compassion. Just saying. 

Two things you can do. First pay about $150 to an appraiser to come out and do a simple evaluation and suggestions on market trends in your neighborhood and what cost effective ways to increase value. Another idea is go here to get some sort of cost vs value report on what ever you decide to do. Gives return on remodeling costs that add value to you home.

https://www.remodeling.hw.net/cost-vs-value/2018/

Absolutely. If you came to me and were interested in a city like Norfolk, VA. I would tell you that most of the sales are in the eastern section of town between 22nd st and eastern shore drive with average sales price of $234,000 and a market time on average 52 days. And I can break that down to specific neighborhoods with details of houses, price, size, amenities, # of bedrooms, assessed values, original morgage balances and rate, how long the owner lived there, when it was purchased last. All public information.

A top Produce in real estate sales earns well over $30,000 a month in commissions. We have 3 in our office that are doing this consistently month after month. Of course they have been in business over 15 years in this trade.

Just go to your local Tax assessor and ask.

A great place to check out construction practices is Journal Of Light Construction. Many articles on residential remodeling and construction.  Also contact Tyvek for advice would be your best source of advice.

Take the profit and move up to the next property and make a long term plan always moving up. Become financially independent within 5 years. Stay at your family's home for as long as they will accept you while you grow your real estate career.  I started off with a 6 family dwelling and within 10 years had 200 rental units and a 50 unit mobile home park. What's your plan?

Take a friendly contractor with you or a friendly home inspector or a well know real estate agent that is a top producer in their firm. All these people can help you with what would be the approach and needed rehab for cost savings and getting a quick sale and giving you advice so that you don't over spend on items not necessary that would be over the top for that neighborhood. 

Do you have any real estate agent friends that are top producers at their firm? They are usually on top of the market and can give you stats easily and free. Best place to start.