All Forum Posts by: Phillip Bradrick

@Benjamin Carver Great post and some interesting data in the short-term space.  Late last year we had seen several new clients come to us for long term property management because they weren't getting the bookings they needed.  This will be interesting to see how it plays out but is certainly positive news for investors trying to get into the market and find cashflow with the current interest rates and house prices.  Keep up the good work!

@Ashish Gambhir That does limit how hands on you can be. : )  Then full-service sounds like the option to go with.  I would recommend as you look at fee structures that you look deeper than just what the published % management fee is and see how many ancillary fees they are charging and what their process is for marketing and turning the property.  One of the things that can have a huge impact on cashflow is whether the property manager will start showing the property before the tenant vacates to secure a new tenant.  This alone can save you thousands of dollars in lost rent opposed to waiting till the property is vacant and then rent ready before marketing it.  As they say, "The devil is in the details."  I'm happy to talk you through our process and how we maximize cashflow for investors.

@Ashish Gambhir Great question.  I can't speak to every property management company in the area but typically the two main options are full-service management and tenant placement.  These are the two options our firm offers.  For a new home the tenant placement is certainly the cheaper option if the tenant stays for several years but doesn't include the support for maintenance, renewals, or the property turns.  I'm happy to chat with you further to see what may be a fit.  At the end of the day, the biggest question is how hands on do you want to be.  

@Zoey Ammon Great to hear of your interest in investing in multifamily in the Raleigh area.  I have several duplexes and small multifamily properties in the area and they have been great investments. The biggest challenge is to find one to purchase at a reasonable cost.  Working with @Benjamin Carver or another good agent to help find and close on a deal will be the key.  Our firm focuses on property management and helping owners maximize the return on investment after the purchase which is crucial for the long-term performance of the deal. If you have any more specific questions about multifamily investing feel free to reach out.  

@Jaren Woeppel I own a management company that focuses almost exclusively on the management side for revenue and has right at 700 doors under management. There have been some big players entering the PM market and a lot more interest in acquisitions of smaller PM operations. In our market 100k for 100 doors would be a steal. Many buyers are paying 1.5-2x revenue. If you’re looking at 100 doors at $150 per door you could be looking at a purchase price of $270,000 - $3600,000. This will change the roi and cost benefit equation quickly. I’d also be aware that you likely won’t have much in the way of systems at 100 doors. That is very manageable for one PM and an office admin. Beyond a management software you may be just dealing with soft processes or in others words, “this is just the way we do it.”

I hope this is helpful and gives some context as you look into this further. Best of luck!

@Benjamin Carver great post with lots of helpful information. We manage a bunch of ADU's and higher density new builds for investors in Raleigh and Durham. The one big caution I would have for investors on the design is don't make the room size too small. It's better to have less rooms and to have them large enough to comfortably fit a queen bed. A good sized room with small pocket office is much more desirable than two cramped rooms. We've seen this issue cause otherwise wonderful new builds to sit on the market because it just doesn't work with peoples furniture.

@Ray Wells great to hear you’re looking to get into RE investing and there’s no easier way than turning your primary home into a rental. You’ll have the best rates and should be able to generate good cash flow.

I have several investment properties in and around Wake Forest and would be happy to be a resource for you. Depending on the extent of the work you need done, a general contractor may not be your most cost effective option. We use a few vendors to turn properties as a GC will typically sub out the work and just mark it up.

The combination of a good handyman, painter and cleaner does the job in most cases. If you want to DM me I can give you the needed contacts for that.

As for whether to hire a property manager, I would think through what your resources are for handling emergency and tenant communication overseas with a time difference. If you have family or friends that you can lean on you may be able to make it work for a while but it also is a lot to ask especially for 24 hr emergency calls.

Having a property manager will add cost but a good manager will also help make/save you money as well. If the PM has the right processes they will be looking to balance maximizing rents while encouraging long term tenants as well as avoiding unnecessary expenses and doing cost effective repairs. One of the biggest ways a PM can save you money is shortening your vacancy time frame between tenants. That alone can cost you thousands if not done quickly and efficiently and a good PM will often save you more in lost rents from vacancy than their management fees are for the year.

Let me know if you have further questions and I’m happy to help!

@Tom Pubins great question. There are some great softwares out there like ShowMojo or Tenant Turner that do just that. We manage over 650 doors and ShowMojo has been great in streamlining that process and scheduling showings in pre-defined time blocks.

@Logan Guerrero great question. Maintenance is key to maintaining long term tenants in the property and avoiding unnecessary turnover. I’m an investor and property manager and what we see is that ongoing maintenance items that bother the tenant or that will do damage to the home need to be proactively addressed. Larger capex investments like new roof or windows can be scheduled based on your cash flow position but need to be addressed rather than just pushed off. We see on average 5-7% of monthly rents going back into general repairs and about the same to capex depending on the property condition. I hope this helps as you think things through.

@Gopi Krishna you’ve got some great feedback already. I’d also recommend Peoples Bank and Fidelity Bank as local options. I’ve got some great personal contacts that I’m happy to share if that’s of value. A local bank is great as well as they have a great sense for the market and won’t be interested in underwriting a deal they don’t think will succeed.