All Forum Posts by: Andrew Michaud

i have a 5 plex commercial property with a metal roof on the main and metal on three porch roofs below. I have lots of leftover shingles kicking around, nice in color. Thinking about keeping the main roof metal and changing tbe porch roofs to shingles. Will this increase or decrease the value of the property? Reasons I am curious..

Will it decrease because I am using multiple materials instead of sticking with the same material?

Will it increase because some say shingles are more valuable vs sheets of corrugated metal roofing which claim to be a cheap route on your roof.

Will it make any difference?

The apartment is in fair shape. New oil fired boiler 5 years ago, new roof and vinyl siding last year, half of the building has new windows, three units are updated with new laminate flooring, and odds and ends to attract a decent renter. Two units could use about $1500 in updates such as flooring, paint, odds and ends. All units are occupied with good tenants who have been there for over 2 years. I am very confident in the return of this investment. The building appraisses for 120k, town appraised it for 95k in 2013 before the roof, siding, windows, and interior updates. I have instant equity and I am a carpenter by trade and plan to put some sweat equity into the building not only to hold a reputable building and maintain good tenants in a small town but also to increase the value of the building and save thousands by not hiring out any work. I am putting 12k into the property as a down paymeny and with 0 vacancies over a year I see a 100% ROI. I expect roughly 12k profit after expenses before vacancies and minor repairs in which I could handle myself! I feel like this is a no brainer! Only down side is it is in a small town.

I got approved at the credit union today. 60k purchase, 12k down, so a 48k loan. Plus 2k to 3k in closing costs. After all of those expenses I will have about 6k to my name. Is that enough? I have two jobs I make money from, and this property is a 5 unit all occupied bringing in its own cash. I see a 100% ROI after the first year. 6k enough set aside? Will have more as the months pass on and paychecks/tenant pay comes in.

i am looking to purchase a 4 unit apartment with a very nice, furnished commercial space that is currently a hair salon with all of the equipment. All 5 units are occupied. 60k I feel is wicked cheap. Have looked the place over and its a great investment. Only thing that I am skeptical about is the town. Its a very small town, seems to be dying everyday. There is one grocery store, one gas station, not many small businesses. Very skeptical about this. But at the same time, it seems go be a quick return on investment and the property values at 120k. Negotiated the seller down to 60k. He is looking to retire and free up responsibility. Should I purchase this property? Price isn't everything but neither is location.. what do I do??

Another worry of mine is the size of the down payment. Should I expect to see closer to 30% or closer to 20%? Also, do they work with you on throwing closing costs on the loan instead of paying out of pocket?

Ed Emmons, I was going to try the County Federal Credit Union, see how it goes. If all else fails, I would move to the next bank which would be Aroostook Savings and Loans. Do you think I have any chance on getting this loan? I likely will not have a co signer and my biggest worry is the lender seeing my 15k income. I have been at that job for 3 years though. This property will also bring in an estimated 10k/yr after all expenses including mortgage, tax, and insurance.

do I have to finance under a commercial loan? 4 units, and a 5th space for commercial use which is being used as a beauty salon right now. What is the difference between a commercial real estate loan and conventional real estate loan?

Thanks Patrick! That is the plan. I want to show how serious I am about this. I don't want the loan officer to have any doubt in me because of my age. I want to keep his confidence in my path. Its a big move for me at this age but I am confident. I have made a lot of "first moves" young in my life and I am ready to tackle this one. I want to get the ball rolling! I feel if I start young I have so much time to establish my portfolio.

I am going to be the property manager. Its a 4 unit apartment and it would be my only one. I wouldn't feel it being necessary to hire a property manager until I get multiple properties.

Also yeah I may have to try a few lenders! Worried about what they will think about my 15k income.. although I have been at that part time job for the past 3 years

No I am not as all of the units are occupied unfortunately. I wish.. that would open up new potential for approval