All Forum Posts by: Bill Fennelly

@Parker Dresser what are the biggest cons you face with the properties...I am pretty familiar with the overall operations having sold a few as a broker in the past few years, as well as having appraised a few for lending purposes over the years, but no experience on the ownership side, I do own other traditional multi-families but I know this is a different "business" in the real estate industry, any insight would be truly appreciated

No pets, no water beds, remember tenants are clients and not friends, great advice earlier by not letting them think you are the owner but rather you work for the owners, verify income, recommendations, and talk with prior landlords if possible.

I am considering buying a licensed rooming house in my area, 13 units plus on site manager's unit, average of $150 / unit per week, 100% occupied, real strong cash flow with $4,650 positive cash a month, I would welcome and appreciate any comments on people's experiences with this type of property, thanks in advance.

This is a general discussion question...I am curious as to where you get your data, as a Broker nand an Appraiser, I would think that it is critical for the fix and flipper, buy and holder, wannabe wholesaler, or general investor to have MLS access...do you also preview what is on the market when attempting to make a rational investment decision in order to have a strong ARV as well as an understanding of what others are supplying in the same price point, ie. the competition, I put zero credibility or credence in Zillow, yet I see so many people placing emphasis on this weighted algorithm...understanding that this is a big country with many different markets, I am curious to hear your feedback.

The devils in the details, or in these cases the data, so it would depend on the back end numbers...however, jumping up price bands may do away with FHA and VA buyers at 3-5% down and attract conventional Buyers with 20% + down...just my opinion !

Pay $400 +/- and get an appraisal or pay a full-time Realtor for their time, could save you $1,000's in the long run...don't put faith in Zillow...just my opinion !

good info from @Douglas Snook

however if it is a property that I am buying for myself I go to the Registry of Deeds myself and trace every single deed back, just to cover myself, get a history of ownership and to make sure no easements, liens or concerns get skipped by the attorneys, have had problems in the past so I like to know the answers before I start asking questions...just my opinion ! 

if you get the run around, call your local newspaper to get a story in the paper about the police doing damage and city hall not willing to be accountable...just my opinion !

@Olga Levin

I completely agree with you that it will not make sense to apply the same values in different regions. I was thinking about a database that has different values for different cities which is based on the numbers that local appraisers are using. Do you think that would be illegal?

The powers to be at Fannie Mae & Freddie Mac, and the federal government would very likely take issue with such an approach, even though they track and secure data from appraisals on a national level for their research and review. 

It would take out the objectivity of the analysis as well. I live in a town with a median price point of $650,000, and a neighboring town with a median price point of $350,000 (example), the same two car garage adjustment would very likely be different in these two towns which border each other, and say the two properties being appraised could be 3 miles away from each other...the same could hold true for properties within the same town.

Often times adjustments can be based on the price band or level, ie. low end vs. high end, having an understanding of market conditions, gut feel (non quantifiable), market expectations, a test of reasonableness, and a host of other reasons.

There are cost manuals such as Marshall & Swift that can provide you with replacement cost data for various regions that may be somewhat helpful, just an idea and just my opinion !

Have a nice weekend...

@J Scott

That's a great idea to keep and/or collect appraisal where possible, I bet there are those that barely even look at their appraisals that close when they come in.

Have a good weekend !