All Forum Posts by: Austin Patenaude

 Very true on supply demand side - the 90 residential units actually were denied by the town, so just a the residential that is coming in with the whole foods/retail will come in. So doesnt seem like an immediate supply increase will occur (not to say it wont in next 5). But like you mentioned, while there may be a slight decrease in demand as a result of the oversupply, if the project brings the people it should, then in time rents should actually increase as a result of my place actually being a bit cheaper than the new development. Would you agree this is fairly accurate? I dont want to assume appreciation of course. 

@Russell Brazil appreciate the feedback. The area has significant development nearby so potential for appreciation. Wondering if 90 brand new units and various retail space will hurt or help value. Thoughts?

@Mayer M. So you would say this is a solid purchase in your experience? How has managing the properties been for you?

@Sean McDonnell the HOA bought the leased land from builder. Would pay $500 a year til 2029, then just tax on land.

Main thing is that I get hit with special district tax, which will remain even when I get land ownership and pay additional tax.

Land lease is an interesting scenario to say the least.

@Karen Higgins negotiated on my list of inspection items and got down to 120k - doing work myself. These items would get the necessary items up to speed (so hopefully repair and maintenance deferred for years to start)

When you’re assuming repair and maintenance are you basically assuming a % to build reserve for future capex?

I agree I will add an assumption of R&M and vacancy as well to my analysis (which makes it not as interesting unfortunately).

@Adam Carskaddan I’m just getting started in Hartford County as well. Under contract in Avon. West Hartford, Elmwood coming up - great price to rent ratio - houses go FAST. New Britain great as @Ryan Deasy mentioned - I’m just not familiar. I would suggest listening to all BP podcast eps. I’ve listened to over 100 episodes now I last 9 months, back to first 10 eps. Once you start analyzing and seeing houses, the opportunity will click. Let’s connect sometime.

Had an offer accepted on my first ever real estate deal - a condo which is in inspection negotiations now. Thoughts on my analysis? Any input? Did i miss anything? Property is on a land lease expiring in 2029 where i will then retain the land. I figure i can extra pay down the loan with my income since payment will be about $600 a month, where i can cut the loan in half then start renting out. Would retain as my first residence for about a year or so. HOA is reputable and has maintained the property well, with few properties on market each year. Let me know what you think!

Purchase Price: 128,500

Closing Costs + Working capital assumption: $15k ($7k + $8k, respectively)

Total Basis = $143,500 

Rent (operating income) assumption based on past rents: $15,600 annual ($1300/month) ($14,400 @1200/month)

Expenses (annual figures): 

Property Taxes: $2,800 (on dwelling)

Land Lease: $519

Tax District (deductible): $1,009

Association dues: $1,500 ($125 / month)

Trash: $500

Insurance: $1,000

Net Operating Income (prior to debt service) = $7,300 approx

Debt service (principal + interest): $7,000

Cash Flow after debt service = +$300