All Forum Posts by: Brian J Allen

is buildium worth using for people with 1 or 2 properties they use for themselves?  Or do you need scale to make it worth while?

@Plato Asadov, sorry I am late to the conversation. As mentioned above prices have peaked and are dropping. You will have one of the top 5% most expensive houses in Upton so in any market it will be hard to sell, that is probably why they are not going on MLS. You can build new/custom in Upton for $900k as there is still land. Also keep in mind the traffic patterns as Upton has a large land area. You need access to 495, and likely the Bellingham Train Station to have the most value, if you are TOO FAR WEST, then property values drop. Also, keep in mind that the appraisers will be likely give you less than market value on your appraisal due to the circumstances, and the HELOC appraisals have been coming in soft as well. Make sure you have a couple outs in case the appraisals don't live up to your expectations.

@Kyle Curtin,  i tried QB a long time ago and hated it.  I now write my own through Google Sheets so i can make it better every year and drill down of categories.  I have rent on one page, and expenses on another then have one final page with the final info that i can give my accountant.

My accountant does the depreciation for me on his own separate schedule.  

If you have enough units people use management software which allows them to track every time they visit and how long it takes to repair things at the property.

@Kyle Curtin, Guys many "Old School" owners simply don't keep accurate books. They collect low rents in Cash(yes even on commercial properties). And simply don't keep spreadsheets.  They also might not use management, and just do repairs themselves so there is really nothing there.  I am having issues now on a $1.5mm property purchase, and they don't want to have the tenants fill out estoppels, as they are probably not doing everything above board.  And keep in mind things will be getting worse as older sellers realize that this may be the last chance to sell in this market, and they might DIE before the next uptick

Guys,

I never trust the seller on anything.

I always have my expenses based on the type of house, you can pull taxes, water and sewer from public records.

You can get an insurance quote.

Then you simply have to KNOW the RENTS, and KNOW the expenses based on the quality of the house.

If you are not sure of these numbers you have no business buying anything.  If your realtor doesn't give guidance and simply shows you houses, find another one.

You need at least 2 sets of eyes on everything!

@Edgar Vigil. If this property is in Worcester and you are paying $560k for a 3 family you better not put more than $50k into it as you will never refi out. You are trapping your equity there. you could buy something done for $575k and get cash flow right away with NO CAPEX. You can get awesome DONE properties for $675k. Also, remember in Worcester the Rents can fluctuate 25% from one area to the next and that is the key. Also, Worcester has areas that are management intensive, that is you have to work every month to get your rent. Remember the median income in Worcester is under $50k so close to 60% of renters struggle month to month paying their bills. Now with increased electricity prices and heat prices this will be worse as well. Hopefully you are working with a realtor who knows the city and the areas so you can price your projected rents accordingly. Also, remember that if you don't have parking you will have to find new tenants every year (unless you are next to a bus line and your tenants don't have cars) since the winters are brutal and 1 bad storm can make it impossible to park on the street for weeks at a time.

in Worcester it is all about LOCATION.  if the location is great then maybe you do it.  if it is marginal, RUN RUN RUN.  you can fix the house but you cant move it.  There are many places where the house is like that because it is not worth fixing it.  Make sure you triple check the location.

@Henry Li the WPI rental market is fantastic, but as @Chris Seveney says it is very small.  Rents are running around $700/BR for good stuff.  I have clients who will only buy there.  Last year i did 4 multis in that area and all were super happy with their purchases,  I have one under contract right now as well.  There are lots of good property managers in Worcester for that area.  Reach out off line if you want recommendations.  The best property managers are local people who do it for select clients.  

I believe if you are in the market you should constantly look for deals.  There are deals in every market.  If the market dips more, then the owners of the good properties won't sell them.  The best opportunities are currently off the mls, and they typically are.  The good sellers only sell when they have a reason, like getting something they prefer more for some reason.  If the market tanks like in 2008 there might be foreclosures, but those typically come with tenants who don't pay and are a mess.  Taking time off does not mean that there will be better deals down the road.  If you are in the market you should be shopping.  You can make your offers based on a declining market and see if sellers agree.  Trying to time the market is difficult.  If you find a house you like in an area you like, make an offer you are happy with.  Over time you win with good houses.  It is like buying a Toyota, if you plan to drive it 300k miles you can pay a little more to get the options you like as you will win in the long run.

@Anton Filiptsov. I echo what Klye and Sabrina says.  Our group is finding great deals all the time in Worcester.  You need to find a good agent who does multifamily in the Market that you are looking at, be it Worcester, Marlboro or Framingham.  You need someone who can spend time with you and guide you about the process until you are ready.  We just picked up a 3 family with a full basement yesterday for a client off market in a cool location for a client.  There is stuff out there but you have to work with someone who is seeing 5-10 properties a week in your market and really understands you and what you are looking to accomplish.  Best of luck.