All Forum Posts by: Carini Rochester

A very encouraging post! Thanks for sharing the Dion Talk Binder link. I had never heard of this. At annual rent increases, I do scour Zillow for market rents in the area, which I share with my tenants. I think it puts the increase into perspective and I get no pushback or arguments from my tenants. I'll watch a few videos and see what I can learn. Thanks again.

"has foundation issues and got them fixed . . ." Way too vague! What were the extent of the issues? What steps went into getting the issues fixed? Was a licensed engineer involved to design to repairs? Was a building permit issued? Was the work inspected? If the remedy was designed by a qualified professional, the work carried out be an experienced contractor, the work was permitted and inspected by the town, then the value reduction would be zero. If shortcuts were taken, and/or your inspector sees problems with the repairs, then it might be the worst case scenario that you would walk away from. I have been involved in many foundation repairs and we get the improved foundation up to as good or better than new.

Nice looking little duplex! What's your cost/sq. ft.? (for the building) What's the site and site work cost?

I self-manage. I think getting a PM is the next step to allow me to grow. But I haven't begun that process yet.

I have a single family in Greece, NY. I've owned it nine years. I have found that careful tenant screening is critical. My current tenant hardly ever calls about any problems. Repairs and maintenance costs have been pretty low. Depending on your current financing and monthly payments, you might get this to cash flow once you get it repaired and get a better tenant in the house. It sounds like your property manager isn't doing his job. My house was appraised nine years ago at $95,000. Now Zillow estimates the value at $210,000, so Greece houses have appreciated nicely in the past three to four years. Double check market rents. Consider the fact that these areas are appreciating nicely. You'll probably do well whether you sell at the appreciated value, or hold on to it and get a better tenant at current market rent.

I think crime data is key. All the other economic and "do you feel safe" criteria seem intricately linked to crime. Here's a link for Rochester Crime Map.

Rochester Crime Map

good luck. I've got a guy who can paint, do yard work and cleaning. Plumbing and electrician are licensed skilled trades. I've never found a handyman who could do those.

The flippers in my area who are most successful are also very experienced. Some are contractors, some are real estate agents, some are investors. But, they all started inexperienced. See if you can find a contractor who will show you around their current project. Get to know people in the various trades (plumbers, electricians, carpenters, painters, siding installers.) Start with one that only needs some cosmetic fixes (minimal drywall, paint, flooring) and see how you do. Probably don't start with a complete gut. 

The sales pitch may not be true (gasp.) Maybe their guess at what the market value is is actually what the market value could potentially be if someone (the next owner) does the hard work of getting the rents up to that value. That hard work includes making the investments that the current owner hasn't made (nicer kitchens, new flooring, fresh coat of paint, etc.), removing tenants and marketing to new tenants. Raising the rents will not be as easy as merely sending out notices of rent increases. If it were that easy the last owner would have done it. Don't pay the current owner (higher purchase price) for the work he/she didn't do. You do the work and reap the rewards.

I think Gino's assessment is right on. Sell this one and keep the cash on hand (after taxes (Ouch!)) to be ready for the next opportunity. My small 4 unit office building has been much harder to rent out than my residential units. Working from home has negatively impacted the commercial real estate space in my market.