All Forum Posts by: Andrew Freed

@Hai Le - Usually you have to provide written notice / 30 day notice if you decide to not renew their lease or even just asking a tenant to leave. It all depends on the state. Once the lease expires, they would turn to month to month tenants. A quick google search of your state indicates the following regaridng timeline to give notice:

• 30 daysFor tenants who have lived in the property for less than one year, or have a lease for less than one year
• 60 daysFor tenants who have lived in the property for more than one year but less than two years, or have a lease for more than one year but less than two years
• 90 daysFor tenants who have lived in the property for more than two years, or have a lease for at least two years

I'd definitely touch base with an eviction attorney in your state to ensure you are not missing any steps and to have the attorney as a backup option in case the tenant does not vacate easily. Best of luck! 

Good stuff @Jonathan Bombaci! 

@Jonathan Greene - Thanks for the plug. Yes, there are a ton of good meetups around Worcester. The Simplified REI brand (you can find it on facebook or BP) are some really good meetups. Also, white aces meetup in Framingham is good. Also Cocktails and Real Estate at Patriots place.

BP does have a local meetup section which usually has good local options. Meetup and eventbrite seem to be the other platforms that people post them in. Hope this helps and feel free to DM me if I can be of any assistance locally. 

@Alex Fenske - Amazing story, congrats on your success. I love it when I see other investors make it happen despite innumerous obstacles in your way. That truly determines the successful from the unsuccessful, making it happen despite all the odds against you.

I have a similar story of finding real estate and achieving financial freedom over the course of 4 years, going from 0 to over 300 doors. It wasn't easy and sure as hell was not as frightening as your journey, but it was rewarding nonetheless. 

Congrats again on a successful 1031 and looking forward to reading more about your journey in the future. 

@Guenevere F. - Simply put, no. Real estate is expensive to own and to go into a property with low reserves or not enough money is a recipe for disaster. What is your roof goes, a heating unit.... you're credit card debt could build up quick as a result of this putting yourself in a bad situation. You definitely want at least $15-30K in reserves after the down payment and stabalization costs. Otherwise you may be put into a situation where you have your back is against a wall and you have no way out. Just my two cents. Best of luck with building your rental portfolio. 

@Brian Larson - Are you asking how to assess rental demand in any given market? A good indicator of this would be analyzing the HUD Fair Market Rents year over year. These are the rates established by the government that support housing assistance vouchers. You can look it up here: https://www.huduser.gov/portal/datasets/fmr.html

More or less, if you see the HUD Fair Market Rents increase year over year in a given area, that is indicative of rental demand. For instance, in my market, from FY 24 to FY25, the HUD rents increased by 11% (Worcester MA) signifying significant increases in demand vs. other areas where it may stay stagnant or lower which would signify the opposite. Hope this helps!

@Sue Burriss - Jersey City is definitely a challenging area to invest, low class C or D in my opinion. I personally like to invest in Class B or nice class C areas. @Jonathan Greene invests and works in the Jeresy area, he might know of other multi markets to invest or have other recommendations to help you on your journey. 

@Jonathan Greene - Thanks for the introduction. @Paul Brady - Doug Mercurio out of North Reading is a really good investor focused attorney. Happy to make a warm introduction if you need it. He does all my stuff and I've completed over 50+ transactions with him. Good guy! 

@Chirdeep Bhutani - In my area, Worcester Massachusetts, with interest rates coming down, cap rates have gotten better and values have increased. Interest rates and cap rates are definitely correlated. If interest rates come down, cap rates tend to compact increasing values on properties. Think about it, if you are buying something at a 5% cap rate, but interest rates are 6%, the debt payment exceeds the income. However, if you purchase at a 5% cap rate and interest rates are at 5%, the property can support the debt payment. Hence you can see how interest rates play a large role in determining cap rates in a market in my opinion. 

@Sarah Rhee - Sorry to hear about your troubles, but it sounds like you are in a good position networth and equity wise. If you are looking for cashflow, the key is to transition the equity you have into assets that provide a higher return on equity (ROE). As of now, it sounds like you had a ton of equity locked up and it is not working hard for you. 

You have a couple ways to access that equity.... you can 1031 your orange county property into a large multifamily and create cashflow that way. You can also HELOC your primary residence or RELOC the orange county property and transition that into cashflowing assets. Or you can even cross collatorize the properties to purchase other properties. Nonetheless, I agree... with your mortgage rate being so low, it seems like it makes sense to access the equity via other methods beyond refinancing.

Nonetheless, I implore you to do an exercise. If you grabbed equity from the orange county property via a HELOC and your current mortgage, what would be your blended interest rate taking into account both mortgages? And compare that to simply refinancing. You might find out that you have so much equity in that orange county property that the blended rate of the HELOC and current mortgage is higher than simply refinancing it and accessing equity that way. At the end of the day, I understand you want to keep a 4.5 or 2.5% mortgage however if you come to find out that by accessing those funds via a second mortage, your overall payments would be higher, it actually might make sense to refinance and use those funds to invest.