How to Reposition a Multifamily Property with Tyler Sheff
- Tyler used to own a trucking business
- Tyler has served for the Police and US army
- He has his own podcast called Cash Flow Guys
Unrelated to real-estate:
Tyler has always wanted to be motivational speaker
Nuts & Bolts:
Tyler started working in real estate in 2000 when he became licensed as a realtor and from 2004 he began investing in real estate. He worked by fixing + flipping and wholesaling prior to 2008. More recently Tyler lives in Tampa and invests in his local market as well as in Memphis. In this podcast he discusses the best ways to increase your income outside of raising the rent.
You make money when you buy, so go around the property and look for problems that you can turn into value add opportunities. Tyler ensures that all rent is paid on time by writing the contract at $100 more than the ideal rental price and offering a $100 discount for paying on time. This ensures all rent gets paid on time, but if there’s a late payment Tyler can charge late fees. The property will be advertised at the proper price and there is full disclosure with the tenant. The money made from the charges are not a profit centre but are used to offset costs passed on to Tyler due to the late payment.
When walking the property, think of the tenant and how they will live there. For example the Tampa area always needs more storage, so Tyler will buy a large storage unit, make it look nice and fix it into the land of the property and rent it to the tenant. He has also added laundry rooms or coin laundry units to properties depending on the class of the market. Try to make your property more attractive to the tenant by adding all the amenities as they are more likely to pay you slightly extra rather than want to negotiate separately with water/electricity/cable suppliers themselves.
Another thing to look for when walking the property is appliances that haven’t quite broken yet but are getting old. The appliances depend on your market, for example air conditioning is a necessary in the Tampa market that Tyler invests in. He buys a new unit before renting to tenants, which will save money in the long term by avoiding 3am electrician call-outs.
Most of Tyler’s investments start out as “drive-by” properties which are the buildings no one wants to look at or stop near. This means that they are nearly always empty to begin with, so he can gut the property without having to move current tenants. The most common mistake is buying a B class property, doing just enough to make it “nice” and then under-renting for fear of it every being empty. If you spend $1000 more you could charge more and ensure that the property is never empty.
Contact – cashflowguys.com
Text – 727 417 9803
on Facebook Cash Flow Guy