All Forum Posts by: Chris Seveney

Welcome. I am out of state and was researching investing in central Maine. While the numbers initially looked good- do lots of research as what I found was many locations tenants were not paying utilities and they were not separated. The heating costs in the winter as you know can be a killer on a rental property.

Do you have someone in the other end as well. You may have trouble having Someone on the other end as there are truly not guarantees of investor getting the $60,000 as if market tanks and you cannot get financing then the person is stuck with the home- or if you no longer can afford the residence. Just trying to give honest feedback that it may not be as easy as it seems unless the house today would be worth well over the $700k

Several things 1. If your getting bank financing it will need a title V inspection. One thing you can do is make your offer contingent upon a title v inspection as they only cost a few hundred dollars 2. I owned a 2/1 in wayland on an over sized lot and thought it would not be a problem to add a bedroom but several key points were if you upgrade /add a bedroom you would need a new septic. Secondly and more importantly was I was within a certain distance of town wells and I was not allowed to increase the size of the septic on the property so I could never increase the house or septic

If it hasn't sold in 5 months it is probably over priced. Have you dropped the price?

Utopia

My wife and I have separate accounts.

Don't see why not as long as your uncle didn't own the home that you bought at auction

First this would be considered a commercial mortgage so it will be a little tougher to get financing. Expect the rate to be between 6-7%. Also the down payment may require 25%. Definitely start talking to banks. Vacancy I would put at 8% and 8% property management. Snow removal,  taxes, insurance, lawn & snow removal, pest control, trash removal, utilities for common rooms, cleaning/repainting at tenant turnover will probably be 10%+. Repairs depending on last updates range between 5-10% and capital repairs again another 5-10%. 

Based on the numbers above and what I plug in, it doesnt look to be that great of a deal. Especially with it being two buildings, whereas you have two roofs and more can go wrong.

Just my thoughts, be interested to see what others suggest.

40' from the property line BUT you also can I build/ be within the easement either. Setbacks are always from the property lines. Easements allow the use of your land for a certain purpose which means you cannot build within the easement. If that doesn't make sense feel free to sende a PM

Have you talked to a CPA ? If you have a high personal net worth then incorporating LLC's may be beneficial. But starting to create them for properties and management companies you need to review. Also in many states you need to have a certain license to be a property manager which then means insurance and other costs. I do not believe owning one property and starting a property management company for it will be economically advantageous.