All Forum Posts by: Christopher Sineno

Interested in southwest Ohio? 

We have several properties - both rented/cash-flowing and rehab needed @Cassandra Marshall

Understanding what you are buying and in what neighborhood is important anywhere you buy, Dayton is no different. 

We have a lot for sale, we buy a lot, manage a lot of rentals and rehabs. 

Feel free to connect! I'd be happy to answer any questions you have directly - including best practices and connections within the market.

Not sure if you got the help that you needed @Manan Shah

We have a renovations & roofing company: Bulldog Renovations

Would be more than happy to connect and share info!

I agree there needs to me more context, and there should be a more detailed billing process from your PM on what is being charged and why. 

We charge by the hour for time on the job, and the cost of materials. No markups on materials.

I would encourage a contract review, sit with your PM to discuss your concerns and see what they say. Some PMs need a little more oversight on the billing end, so this may be an opportunity for them to re-evaluate how they are servicing your assets and improve performance. 

The ballistic option: find another PM and terminate the existing service.

Hello Sachin,

It is unfortunate the situation that has unfolded with this property. 

As you are aware, the circumstances surrounding the poor performance of the previous tenant was and remains an outlier to the standard our clients usually experience. The resident was effected by COVID-19 which lead to increasing issues with executing normal steps for removal. Once this was achieved, they had taken advantage of the situation and restrictions, and effectiviely destroyed the newly remodeled asset. 

Our team quickly identified next steps and solutions to get this asset back into a cashflow state. This amounted to turnover that was heavier than initially expected. Even with this, it was requested by you to remove the non-safety related items from the scope of work. This has caused a few items to come up after the new resident moved in, as was warned when the scope was finalized. 

This truly has been a situation that is difficult to navigate. There is risk involved with investments, but we are in the trenches here with you. The pace of a full resolution will be stressful as we continue to make every effort to minimize further losses on this asset. 

Additionally, we have continued to improve processes including adjusting our fee structure to innovate and align with your interests. We care about putting you in a good position. This is a several months long effort to get you cashflowing well. 

I appreciate your patience. Please feel free to reach out to me and my team if you have concerns.

What everyone has said is spot on... Establishment of trust is vital - not just for the client, but for the property management company as well. 

We screen clients just as rigorously as we expect them to screen us. Every attempt should be made by the PM company to not be "sales" oriented with the calls. And PM companies that truly care about the service rendered, they will get to know the owner in a way that assists with better management on the property. Getting to know why the owner is purchasing, and the plan for holding or disposition of the asset will place the PM in better position to completely take care of the client.

Please feel free to recah out with any questions!

@Kate Koeller we have a similar clause in our lease in regard to terminating the lease early.

There is also an option to have someone take over the lease at a penalty. That way you don’t have vacancy losses but this person can get out of their main contract.

Investment Info:

Single-family residence note investment investment in Fairborn.

Cash invested: $10,000

2nd position at 10% - closing sale on October 19th.

What made you interested in investing in this type of deal?

Needed a passive return. Something hands off.

How did you find this deal and how did you negotiate it?

Referral from local investor. Partner with the primary note holder.

How did you finance this deal?

Personal investment through sole-LLC

Lessons learned? Challenges?

Find better ways to negotiate higher returns since I am local and my partner is not.
Find private money and reinvest into the partnership with larger returns.

@Alexander V. Absolutely do your own research...

What we do is before opening Rentometer, or starting to look at comps, we calculate 1% of the ARV for rent. As an investor, that is a decent gauge of the market but is not perfect 100% of the time. Ex. Single-family purchased for $45k, $15k in rehab (rent ready) costs brings us to total acquisitions estimated at $60k out the door. Appraisal comes in, estimates a property value of $90k before it being rented. So not only is there a nice chuck of profit, there is room still for additional income potential. $90k at 1% (.01) is $900 <-- what we are looking to charge for rent.

From there, we then look at comps in the area. Rentometer is good, manual comps are fine as well. Rentometer will give a range (ex. $875 - $975) for similar properties recently rented in that area. This is where it gets fun... you have now confirmed your estimated $900 is WELL within range for the market. You then can play the "sales" game - Start the rental listing at $950-975, allow them to talk you down, just hold strong at $900. The resident thinks they are getting this GREAT deal, but in reality, you got at market or better. **Another tip: we have A LOT of success with rents ending in $99 ($699, $799, etc) -- If the ARV calculation comes out to an even hundred, bring it down a dollar. So for this example, $899/month would be the rental listing pricing.**

Also, with volume, YOU will be able to set the rental rates in your market. We have a client that owns half the block, so we can set the rates on the higher end, just below what the market can bear.