All Forum Posts by: Brendan Connolly

Hi there community. I'm a small time investor but looking to take off this year. We want to pick up least 3 more multi family houses, minimum of 2 family units. Has anyone recently added Mitsubishi mini split heat and a/c units to their properties when having issues with comfort for their residents?

To add a little context...we have a home with working steam radiators, gas boilers thag are 7 or 8 years old. The heat was so inconsistent I was receiving non stop compliants. We did everything we needed to and always got the radiators running. It seemed to be more of a thermostat issue.  The tenants just want on demand heat and don't really care to hear about how a steam radiator works, etc. I like this mini split option because not only is it a back up buy it also gives them air conditioning. Therefore, no more window units. Right now we pay for heat because the 2nd floor was split 30 plus years ago and the apartments are grandfathered in with the city. 1 thermostat in one of the two apartments.

Suggestions, comments, experience with these??

Evan,

I have an attorney I consult with but I don't usually pester him with minor issues I created myself.  Just being honest.  I agree with you there with the not chasing section 8 ppl for damage reimbursement. I've actually had a fair amount of good tenants with this program, even though some can't even balance a check book or shop for themselves.  I think the plan at this point is to cross my fingers and ride it out and hope that she stays open with me. She seems to be pretty transparent and forth right.  She does know the system though and drags her feet which they point the finger at me when something is not done. All is fair I guess as long as we can keep knocking that mortgage down.  Have a good one and thanks for the sharing. If any other options come up please share. Stay healthy.

Charles ....yes the life lesson is do not being so nervous and impulsive with having a large vacancy. From what I recall we looked into the ladies rental history and it appeared decent.  She seemed a touch better than previous one's we had placed in the apartment. She was a little shady with noting a previous apartment she had been in though....hmmmm. I hope that she works out and if not...chalk it up as another lesson learned.  I have found that things typically work out and most people work to do the right thing if you're not spiteful toward them and play it fair.

Hi. I have a question for some of you seasoned and thick skinned landlords. First and foremost, I hope everyone is staying healthy and able to make payments or find solutions with the corona virus amidst.  Anyhow, Ive made out good so far minus a set back with a section 8 re-inspection.  My tenant and her three girls, varying ages are pretty responsible in the big picture of what they have available to them. Mom has a loose connection with her sister in law to gain income at night and not show it to section 8, therefore hiding to fact that she would have to pay a small portion of the rent.  I don't really care about this part. I look at it from this context. She's doing what she can to keep her daughters afloat and have the bare necessities.  Anyhow, she was supposed to get assistance from Dept. of Children and Families for a security deposit and their program or some discrepancy with what the tenant failed to do caused her to not receive this. Now, I took a chance with this lady because overall she appeared to be a decent section 8 tenant from my expericence with this program. I find it to be fitting for the house I have in the small blue collar town we are have this property in.  Unbenowst to me, her previous landlord who she had a private relationship with....I think it was sexual in nature from what she claims... evicted her the week she began moving into our place for a small dollar amount. He was successful because it appears she never showed for the appearance dates.  Fast forward several months and I was told that she would not be getting the security deposit and she promised that she would pay in payments if need be.  First mistake was that I never got anything in writing, second was that I took a chance out of "giving her the benefit of the doubt" that she  would produce this security (1200.00). I am still currently in the hole for this money and have written her and email and sent her a certified letter explaining that she needs to pay the deposit in payments of her choice. I did not threaten any action or give any consequences as of yet due to not not hearing back from her.  Dies anyone have any ideas on how to proceed or has anyone dealt with a situation like this that can offer help or guidance. Overall, they keep the place very neat, are good/consistent with communication and seem to have vested interest in staying long term. This is the largest and most yielding apartment in a building of 4 units.  Thanks for any guidance or wisdom. We are in Connecticut.  Thanks in advance.

Dion,

Sorry I replied way back when but never hit send. Lol.  I like that approach.It's conservative and gets you the solid financial foundation you need. That's kind of what I have been looking at.  My only issue now is finding this third property to move my family into. I have 2 young kids and my wife (soon to be ex) that's moved into her own apartment will have their objections. It does not really matter to me as long as I develop a good system.  I need to find a financial approach to buy this third property without refinancing though. I am a veteran and full time police officer so I've heard they have some special programs that help us out.  I need to look into. Have you heard of any of these programs or any suggestions?  The reason I don't want to refinance and cash out is because I feel like that's bad luck, especially if you have good tenants and a good system going. I understand how that sounds but it's just how I feel.   Maybe I'm looking at it the wrong way.

Also, I need to decide whether I get another house near my single family or my 4 flex (single family is in better town, 4 flex is in a smaller city with lots of diverse issues and tenants that flip flop from place to place).  Have you ever pooled together with people that want to invest in multi's and come up with the cash for you?  I know some ppl that do that, but it doesn't seem cozy with me.  I'm thinking about just going to the bank and talking with them to see if they'll work with me.  Take it easy. Talk soon

Yes, may I add that this property is in Bristol, CT (yes the home of ESPN original site).  Bristol is a busy medium sized bedroom community, which has it's share of pros and cons. Renters are abundant but they all seem to have similar financial issues/problems/road blocks.  

Does anyone like one specific screening website or methodology for weeding out good residents versus so-so ones? Listen, I've realized that with this business you have to make a lot of mistakes in order to know what to look for and what not to.  I've found that if you refer to the potentials as residents they feel entitled and prouder living in your property.  Just my crazy belief at least.  Sorry, got a little off topic.

I appreciate the info. Has anyone heard of bank stacking (I may be misusing the term)?  An older couple that owns 100 plus units has mentioned it to me but I can not recall the details. 

1. Ive looked into HELOC

2. Refinancing is an option, thanks Eric C.  

3.  I'm not familiar with 1031 Exchange will have to look into that.  

4.  I have several goals. One being that I want security in retirement and  steady flowing business when I retire from the municipal job. One that I can possibly hire some additional employees under (part timers mostly) Two, that I'd like to expand my portfolio and have more cashflow down the road, maybe enough to roll it into other investments or business ventures. I guess the skies the limit.

5. I also have a single family house that we've been in for  approx. 11 years. Not the biggest but enough to stay comfortable.  Thanks folks.

Greetings all. So just a quick synopsis of what we have going. We, well mostly myself, have owned a large 4 family house in a blue collar/working class neighborhood. We get decent people applying for rents and screen thoroughly to get the best that we can for the area. I've found that a mix of Section 8 [Housing Authority], disability assistance and as mentioned above working class folks. I manage the property and hire out when time does not allow me to care for the responsibility/issue/maintenance request, etc.  We are normally at 100 percent rental but I'm down one unit right now, lightly renovating the largest unit.  The tenants are typical tenants, good most days then horrible others.

I have 2 very young kids now and I'm interested in buying number 2 and possibly 3 in a better area but keep in mind that I have a full time municipal job and family that is at the forefront. Therefore I've considered hiring a management company to assist me or holding off on the investments. I have several questions/concerns. 1. What's the best option for financing a second project? 2. Should I go LLC? I never did on the first one and things have been fine in the 15 years I've had it.

3. What's the best play...paying off the first one or stretching the money and investing in the 2nd and 3rd? I'm a little lost and need some guidance. I need a mentor the more I consider my situation. Thanks for any advice. 

Brendan C.

I'm a police officer and Landlord. I have my minimum and maximum criteria, we shall call it. I take every potential tenant on an individual case by case incident and evaluate if I believe they will be good for our properties, other tenants  that reside their, daily dealings, paying rent, etc etc. 

In regards to this case I would say very little and just say that they did not meet your minimum standards. If you don't feel comfortable saying it then have an "associate", someone you network with, or person you trust inform them. I understand the liability part but common sense supersedes that by far. An attorney will tell you a similar response. Good luck. A new potential will be right around the corner.