All Forum Posts by: Mike Dymski

Silly question but is it the norm to include vacancy in the cost figure and use gross rent in the denominator?

I have been netting vacancy against the rent rather than including it in the cost.  In the end, as long as I include vacancy in my modeling, I'm fine but want to have comparable ratios with others when hearing about the 50% rule of thumbs and other property analysis.

Anyone have a recommendation for a commercial banker in upstate SC?  My banker is in Illinois and they fund projects in SC but I want to vet some local/regional banks in Greenville and the surrounding area.  I have a number of referrals and wanted to see if I have any second hits from the investors on BP. 

I purchased an apartment complex and inherited leases with rent due dates spread throughout the month.  Even with technology, it was a nightmare for the PM to enforce due date and late payment compliance and it took her a few months to get all units on a normal schedule.  Too much room for noncompliance and inefficiency having to monitor and discuss it all month rather than at one time.

I use ET for private placement investments and it is insanely slow in both getting the account funded and investment funds directed back out.  IDK if all SDIRAs are all like that but it takes about a month minimum to transfer funds in and then directed back out and this is for simple investments.

no, just 8% flat

8% flat, no lease up fees in my market.  She's managing 34 units for me.  The largest PM in that town charges 7% for that number of units.  Incidentally, I will pay her more if this project is successful...a mini re-positioning.  PM is a distant 3rd in cost to vacancy and maintenance/rehab (and her ability or not to push rents up).

It's uncommon to have onsite PM in my market until 75-100 units (aside from D class).  50 units with onsite management and/or maintenance is marketed as a cost-save play.

I am using a local PM for a 25 unit complex and have had troubles for the first three months...am coaching the situation.  Too early to provide enough feedback.

Most of the small MFs in my market have offsite owner or 3rd party PM.

@Eric Schleif No, the buildings in the complex range from 4-6 units each and each building is fully owned by me and two other owners.

@Eric Schleif ~$750k purchase price on the next set of units in the complex, with ~$2.5M ARV at refi of all the units I have in the complex.

@Eric Schleif Thanks for the clarity.  My commercial mortgage broker previously told me $5M and up for his non-bank sources to get them interested in bridge financing.