All Forum Posts by: Shannon M.

Based on the description of the charges I think it is possible that you are over-reacting. Is it possible that the feeling of a lack of control, based on your distance from the property, is making you paranoid?
Let’s look at it.
1. The landscaping you agreed would be a twice a year expense.
2. The stucco damage you are aware of how it happened and that it needed fixed.
3. That leaves the electrical. The tenant complained and an electrician came out and fixed the problem. Does $75 for a service call sound like an unreasonable expense?

This looks like pretty normal expenses.
I am not attacking your judgment of the situation but from personal experience I know that I like to be in control of my investments and when I can’t be, it is easy to get paranoid and assume that somebody is trying to rip me off.

Looks to me like you have a good property manager that is taking care of things for you.

Just another angle to consider…

Respectfully,

It seems like many of us partner on all or some of our deals. What are you doing to share files and make documents available to partners? My partner and I live in different states and I would like to set something up that each property has a file that we can both use for reference and to see what is happening with the project.
Bigger Pockets has saved me from re-inventing the wheel in other areas, so I thought I would ask here first.

Respectfully,

Wow! Thanks for the summary. It still blows me away when I hear the numbers out there in the Bay Area.
Best of luck on a quick sale.
Thanks again.

Great ideas all around. I need to check the Habitat Store. Here are a few we use:

1. Giant Eagle is a grocery chain that has stores here in Central Ohio. Giant Eagle has a program the can help a bit. If you buy gift card for Lowes or Home Depot(or dozens of other stores and restaurants) you get free gas at Giant Eagles gas stations. Not a huge deal but every bit helps.
2. Don’t think that because you are only on your first or 2nd rehab you wont get a discount on a package at the pro desk.

 3. If you have a relationship with a pro desk at a location in another town from where you are working, you can usually work with the pro desk you are used to and have it shipped through the local Home Depot.

Small time multi-family investor/broker from midwest here.
A few observations; The cap rates listed on Loopnet tend to be very optimistic. They tend not to take into account things like purchasing costs (survey, appraisal etc) and vacancies. Sometimes they end up being "the cap rate that could be" not the cap rate that is.

My other comment is that cap rate can be a dangerous number. Certain investors I worked with looked only at cap rate. Is a 10 cap a good deal? Who knows? It depends on How much you are paying for your money. Cap rate does not take the cost of capitol into account.

H Mann, I am not suggesting you do not already know these things, shoot if you are putting a 20 million deal together you may have forgotten more about this game than I know.
Good Luck