All Forum Posts by: Virgil T.

Assume about a 6% cap rate for the market. Asking price $975k.

Who wants to play with some numbers?

What would you offer on this property? The details as provided.

10 units(5 Duplexes), 2 bed 1 bath per unit, 640 square feet each, 2/3 acre, built in 1986, new exterior paint, new fence along parking lot, many interior upgrades: resurfaced bathtub surrounds and kitchen counters, tile floors, central heat/air. On a relatively cross street, surrounded by single family homes on 1 acre lots and other duplexes.

Each unit renting for $825. 100% capacity. First opportunity to raise rent is March 2021 with 2 units. 8 units expire May 31, 2021.

T-12 NOI $51,558

Expenses $41,282 (Taxes $18,012, Insurance $3,250, Water $7,100, Trash $4,620, M&R $5,228, Professional Fees $3,072, 6% vacancy loss $6,160)

ProForma:

Rents at $875

NOI $56,000

Expenses 44,820

Your offer would be?

Google Strategic Property Management in San Antonio. Jaime Sepulveda Owner 

They do a great job. 

By the way, months ago I got a an SBA EIDL loan and PPP loan as a real estate agent and owner. 

I would think you could apply for a small business loan as a real estate professional if you own rental property and qualify under per IRS rules. Thoughts?

Hi Mark,

Those numbers are very high.  If your home is renting for $1,600/month you should not be paying more than 50% / $800 to cover BOTH the listing agent and the tenant's agent.  So each agent would get 25% / $400.  There are many residential rentals that only pay a tenant agent 20% (and less!) of the monthly rate!  These 20% fees to the tenant agent are properties usually managed by larger property management firms so they want to pay a tenant rep agent as little as possible.  The reality is they hope a quality tenant finds the property on their own so the management company can keep the $ allocated for the tenant agent.  Low fees such as this are why many newer agents show rentals just to get some some degree of experience.  

If your agent friend is also managing the property for you, then he or she should certainly be willing to list the property for a total fee of 50% of the monthly rental amount (since your friend will also receive a monthly management fee).  Most management companies charge between 5-10% (I've even been quoted 12% for my out of state properties) of the monthly rental rate.    

I am a licensed agent In Texas and I also own multi-family property in Texas and single family properties in Georgia.  I mostly do commercial leasing and sales (listing and buyer representation) although I do manage and lease several luxury condos (monthly rates from $1,200-$3,000)  for a group of close clients.  

I use MLS to list the luxury condos and use postlets (which feeds to Zillow,Trulia, and other sites) and Cozy.co (which feeds to realtor.com) as well. For my multi-family property in San Antonio I don't post on MLS. The fees would be crazy low and I still have to screen the tenant. Postlets and cozy.co have worked well. I posted to my class C multi-family vacancies on craigslist in the first couple of years of owning the property and received decent response. However at this point CL is really not necessary, as the other sites do attract lots of potential renters.

Hope this helps!  Message me if you have any questions.  Congratulations and good luck.  Go Spurs (don't know if you're a Rockets fan)!

Attempting to revive this thread...I am considering using Rent Recovery Service for a rather large sum owed.  One of my issues is the ability to report the debtor to the three credit bureaus without a judgement.  The debtor's exact location is unknown so serving him may take a lot of time.  For that reason alone I am considering using them.  If anyone has additional experiences with the company I would appreciate it greatly.  A private message or a post here would be great.

Hello,

I live in San Antonio, TX and I own a single family home in Savannah. Savannah is my home town and I have relatives and many friends there.

I own a multifamily property in San Antonio and work for a commercial RE brokerage.

My 8 year tenant in Savannah just moved out. I had a great handyman but he's moving to Atlanta.

I need flooring, painting, and general make ready people. Anyone in the Savannah area with any recommendations would be greatly appreciated. I'm in Savannah 2-4 times a year and lunch, beers, and/or golf on me if you can send good people my way.

I have a person in Savannah to coordinate scheduling and access to the house.

Contact info:

Please message me here at BP.

Thanks so much,

Virgil Thompson

I bought a 10 unit complex 5 months ago and I've done most of the cleaning and make readys. I hired a crew once. I like doing them for a couple of reasons. I get to know each unit very well and I know each one gets a thorough cleaning. And for now I have the time. I took an early retirement 18 months ago from a corporate job. I have also done some major tree cutting on the property. This has been a great work out and I've even dropped a few pounds and I feel great. I have cleaned behind and under every appliance, the dryer vents, AC coils, AC registers, and in other areas that had not been cleaned in a long time. I had a crew do a make ready on one unit and while their painting was sufficient the cleaning and overall thoroughness of the job was not to my satisfaction. While I can certainly say my time is more valuable than using it for "semi-manual labor" tasks, for now it makes a lot of sense for me. As I add more properties I will not do as much maintenance or make ready work but this experience is giving me a great perspective on how long certain projects take. This will be valuable knowledge when I have to hire crews in the future.