The market
- What units like these rent for today, not what the listing says
- How long vacancies sit and who's renting in the area
- Which upgrades tenants will pay more for, and which they won't
- What's being built or permitted nearby
Lenox Property Management Before you buy
Have us look before you buy it
A listing sheet tells you what the seller wants you to see. We check the market, the building, the paperwork and the real numbers, line up the financing, and plan your first year, before you make an offer.
After closing, the price, the loan, and the rent roll are what they are. The first look is free.
Send us a deal
Send the listing or the address with what you know. We'll tell you whether it's worth a closer look.
The full picture What we look at before you make an offer
We've bought, renovated, rented and sold buildings like the one you're looking at, and we manage them every day. That's the experience we put on your deal.
The building
- Age and condition of the roof, heating, electrical, plumbing, windows and siding
- A capital budget for the next five to ten years
- Lead certificates for units built before 1978, plus smoke and carbon monoxide detection
- What a standard inspection will and won't catch
The paperwork
- The legal unit count, checked against what's actually there
- Zoning, permits, open violations, and the state rental registry
- Existing leases, security deposits and tenant files
- Who pays which utilities, and how they're metered
The numbers
- The rent roll checked against leases and deposits
- The seller's expenses rebuilt from real bills
- Taxes after the sale, including any owner-occupied break that ends
- Income, cap rate and cash flow at today's rates
The financing
- How much to borrow, and on what terms
- What a lender will need to see, including debt coverage
- The deal taken to lenders who fit it
- Equity partners when the deal needs more cash
The plan
- Rents, renovations and turnover for the first year
- Who manages it, and how
- What the building is worth once the plan works
- When it makes sense to refinance or sell
Offer check Will the numbers carry the price?
Put in the asking price and the building's income and costs. You'll see what it earns, whether a lender would be comfortable, and the most the numbers support.
Your deal
An example building is filled in. Replace it with the one you're looking at.
Operating costs are taxes, insurance, utilities the owner pays, repairs, management and reserves. The example rate is the 5-year Treasury (4.89% on Oct 16) plus 2.25 points. Use your lender's quote.
Most the numbers support
$0
- Net operating income per year
- $0
- Cap rate at the asking price
- 0%
- Loan payments per year
- $0
- Debt coverage at the asking price
- 0x
- Cash flow per year
- $0
- Return on your down payment
- 0%
- Occupancy needed to break even
- 0%
"Most the numbers support" is the price at which the income covers the loan payments by the coverage you set, with your down payment and terms. A first screen, not an appraisal or a loan offer.
From offer to ownership We stay with it after the closing
A broker's work usually ends at the closing table. Ours is just getting started, because we're paid as the building performs.
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We look at it first
The market, the building, the paperwork and the numbers, before you offer.
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You make an informed offer
A price and terms the numbers support, and the reasons behind them.
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We dig in under agreement
Inspections, leases, deposits, permits and the seller's books.
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We line up the money
Loan terms, the right lenders, and partners if you need them.
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You close with a plan
A budget and a first-year plan for rents, repairs and turnover.
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We take it over
Tenants, rent, repairs and a report every month from day one.
What does the first look cost?
Nothing. Send us the listing or the address with what you know, and we will tell you whether the numbers are worth a closer look. If you go further, you get the scope and any fee in writing first.
Do you replace my inspector and my attorney?
No. We work alongside them. Your inspector tells you what is wrong with the building today. We tell you what it will cost to own and run it over the next five to ten years, and whether the price makes sense.
What if you tell me not to buy it?
Then we have done the job. Because most of what we earn comes after the purchase, from managing the property and from how it performs, a bad deal is bad for us too.
What kinds of property do you look at?
Two- to four-family houses, apartment buildings, mixed-use and small commercial buildings, and condos bought as rentals, in Rhode Island and Southeastern Massachusetts.
Can you help with the financing?
Yes. We size the loan to what the building earns, take the deal to lenders who fit it, and bring in equity partners when it needs more cash than you want to put in.
How fast can you turn a deal around?
Tell us your offer deadline when you send it. A first read on the numbers is usually quick; the full review runs alongside your inspection and due diligence period.
Contact Call, write, or stop by
We're in the office on weekdays. The form at the top of this page reaches us any time.
- Office
- 380 Broadway
Providence, RI 02909
Get directions - Hours
- Monday to Friday
9am to 5pm - Phone
- 401-572-3322
Fax 888-716-2001 - info@lenoxmanagement.com