All Forum Posts by: Jonathan Johnson

@Dakisha S. There are just smaller mom & pop companies there. What are you looking for in a management company?

Hello West Virginia BP,

Is there any interest in a meetup here in Charleston, WV? I'd like to network and meet others in the community that are into real estate. I can do a class on some rules of thumb and calculations and it can be relatively relaxed as far as structure. Just wanted to see who all might show up if any.

Check this link out. Might be useful.

I'm at a similar level to you and use TenantCloud. It's suits me just fine and I like the user friendliness of it. Customer support has always been very helpful.

I'm also curious how implementation would go. Since the rents are not at market, adding a utility would mean tenants would want the rent lowered. Would I want to renegotiate the lease at this point? Or would I have to wait until the lease is over to adjust the rent and add the utility?

Hello BP,

I have a deal I'm analyzing that has high expenses. One is the management and repairmen, all seem to be buddies of owner and nice but not professional. One big thing is that the tenants rent is only $50 or $100 above market but owner pays all utilities. With the numbers below, what could I expect to save with implementing a RUBS service?

Utilities in yellow, management/repair guys in maroon (ignore that part).

@Brandon Turner, I have a similar offer on the table with last years and this years taxes due (which I don't have). How did you get around this? Did you let the taxes just be late and then pay them eventually from built up cashflow?

@Matthew Bond How did things turn out? Did you end up doing the MLO?

That's hard to read. Is it just two LLC's?

1. Management LLC
2. Property LLC

I am considering a master lease option to purchase a large apartment complex. This master lease will basically be like renting a rental business for a fixed monthly rent. I have a few questions:

Do I start my own LLC to operate under the master lease?
If I intend to purchase the properties at the end of two years, how should I save up for the downpayment from the profits: under the LLC or have the LLC payout to me, who then purchases?
Who pays taxes under a master lease? I know the owners pay the current mortgage, but what about the taxes?

Debt service is not calculated with NOI.

You will want to bill tenants for all utilities: Water, Gas, Electric, Garbage, Management fee. 
That will bring expenses down from 3,900 to 1,400 - still not cutting the 50% rule.

Your repairs, capex, and management are (in my opinion) flexible. Is the house needing alot of repairs? This doesn't seem like a good deal to me unless you can raise rents.