tenants: Things Tenants Do # 105 Consistently Inconsistent - 11/01/12 12:35 AM
We have been unwrapping a recent purchase of a 4 plex with a gross cap rate (the annual projected rental income of $31,200 divided by the purchase price of $155K) of 20.12% to see the results of the tenants performance on our return of investment in the short term.
When we look at the actual rents that we inherited due to the leases that were in place when we closed on the building we find that instead of each of them being at $650 a piece for a income of $31200 we have 1 unit empty (keep reading to find out … (1 comments)

tenants: Things Tenants Do #103 Why is the seller selling ? - 10/31/12 12:10 AM
When we come across an investment that appears to offer a 10 - 20% cap rate we should realize that if it were a perfect property filled with perfect tenants it would most likely not be on the market. You should take a moment to examine, why is the seller wanting to get rid of his golden goose ? 
Once you have inspected the property you should be able to account for conditional issues , such as deferred maintenance, upcoming repairs and functional obsolesce. These can all be calculated into your investment model with relative ease and hopefully with plenty of … (2 comments)

tenants: The Things Tenants Do ! Real Life Investor Experiences #102 - 10/29/12 12:46 AM
Congratulations ! You have just closed on another investment. Only a small % of the population (roughly 15%) have made the step from being a mere consumer of Real Estate to being an Investor and purchasing a home or property that they do not intend to use for themselves. 
Now that the ink is dry on the closing documents lets take the paper off the package and see what you have purchased. 
A mid 60's 4 plex of 2 bedroom units (commonly referred to as "McKuen" the original architect of this Investors ATM of a building). It's design offers each unit … (2 comments)

tenants: I am not you , thank God - 09/29/10 02:44 AM
One of the best reasons to hire any type of agent but especially a property manager is they are not the principle.
This is a huge asset in successful negotiations.
It provides the proper perspective in the initial preparation of the property for presentation and pricing. (without having a personal interest an agent makes sure it is priced right the first time) It decreases the number of tenant repair and maintenance request and their corresponding costs.   (simply knowing that someone is watching the cookie jar makes the cookies last longer )  It equates to almost an unfair advantage in the negotiation of price and terms and allows a much needed buffer between prospective Tenants and … (6 comments)

 
BrokerBarry Mathis (Property Management Solutions)

BrokerBarry Mathis

Roseville, CA

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Property Management Solutions

Address: 548 Gibson Drive, Suite # 200, Roseville, Ca, 95678

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