All Forum Posts by: Patsy Waldron

I bought a quadplex in a city a couple of hours away and hired a property management company. There was one vacancy when I closed on Dec. 1st. I wanted some repairs and updates done before it was rented (update electrical panel, change out a couple of outlets, some cosmetic updates). A week after closing, I walked the property with the maintenance manager, who was supposed to get back to me within a week with an estimate. My plan was to have the unit ready to rent by Jan. 1st.

They did not submit their estimate until a week ago (i.e. 6 weeks after I closed, and 4 weeks after they were supposed to e-mail it to me). The estimate was for slightly over $4,000- for a one-bedroom apartment that will rent for $500! 

At this point, I am beyond annoyed with them, and I want to switch to another property manager with a greater sense of urgency. Oh, and did I mention that I am paying them close to 15% of gross rents?! 

Anyhow- I am wondering if it is too soon to switch PM, and if the change will look bad to tenants (second change within two months). What do you think?

Hello Drew, and welcome to the site! Fellow Youngstown-area resident and Cleveland investor here. You are in for a treat- BP is a treasure trove of useful information and the members a well of wisdom and knowledge! 

As you mention, that is a VERY iffy area... You might have trouble offloading it (at least to local buyers).

Thanks for sharing the numbers and line of thought on this deal! I love to see how other investors think and work, and learn from it.

I have used Fiverr for a couple of gigs (including a logo) and have been very happy with the process, prices, results and customer service.

Congratulations on your first deal!! I still remember the excitement and trepidation when I found my first property. I hope everything goes smoothly! Make sure you get a thorough inspection and stay on top of the mortgage approval process by checking in with your loan officer regularly and often. Best wishes!

 Actually, the data is collected by "drive-by meter reading" by the company. A bill is sent to each unit, with a reading fee included (so it's paid for by tenants). Then the company retains the reading fee and forwards the balance (i.e. the actual water bill) to the landlord/PM, who pays the water company as usual.  

Another nice thing with this particular company is that their system detects when there is continuous flow, indicating a possible leak, and alerts the landlord/PM. So leaks are caught quickly, bill doesn't go through the roof, and damage to walls/unit averted. A total win in my book!

Meters for what? Water, electricity, gas?? 

Two months ago I got quotes for sub-metering water in a multifamily I own. The cost was right around $400 for each unit. In two and a half years I would break even on the investment.... Not bad if I hold the property for a long time.

Terms seem pretty good, especially the interest rate- some people are not even getting this rate on residential loans! As Andrew said, check what the rate adjusts to after the first 5 years- you'll want to make sure there is a ceiling (e.g. no higher than prime + 1). Also find out what the loan fees are.

If you bought and rehabbed all cash (i.e. didn't take out a loan) you can use the "delayed financing exception" to refinance sooner than 6 months. Look into it- it's quite common. If your lender doesn't know about it or do it, call other banks.