All Forum Posts by: Carl Hebert

Another good source for bottom of the market rents is the local Housing Authority. They will have fair market values for rentals in their markets. You have two there, one in Lewiston and one in Auburn. Both use the same base from HUD.

Always good to know your rent potential before you go under contract.

Hi,

I’ve invested in the Lewiston/Auburn area for 10 years now and really have enjoyed the returns. Rents have really climbed in the past 4 years and we’ve had actual appreciation to boot. 
There is still a shortage of units in the area and you are almost guaranteed to rent out any apartment in a week. 

See you there! 

We just charge a $250 pet deposit, between that  and the security deposit figure it will cover the damage if any from a cat.

@Justin Robinson-Howe, you do not need a real estate license in Maine to be a property manager. As for insurance, Errors & Omissions along with liability and if you have employees there will be more.

Good managers are needed in Maine :)

Carl  

@Joshua Briscoe I like both @Tiffany Vogel and @Coury Cast posts for you. Cashflow of 50-100 is not a very strong flow. Call it $100 and you only get $1200 a year if you did the numbers right. All it takes is a hot water tank, furnace, roof, etc and you need years to recover. Granted your cashflow could increase as time goes but so do the expenses. It would take 30-40 years (maybe) to get the 50k you could get from selling now. You also would be gaining equity over that time so it could be a bit shorter depending on the future markets.

You really should run all the numbers and see what makes sense for your situation. I would sell and use the money to possibly find something in Maine. Consider this your initiation into REI! You succeeded! You renovated a property and now you are going to be able to sell it and from the sounds of it at least break even! Instead of a fix and hold you did a flip. Plus you have the experience you gained going through the whole process!

When I started out I used Lowe's and Home Depot to finance my remodels (especially Lowe's, 5% off everything when you use their cards) I never carried any credit card debt, always paying it off each month, but I did take advantage of their 3-48 month same as cash coupons and such. You just have to make sure to never miss a payment otherwise all the deferred interest hits. It was still a little stressful, but I was able to use the income from the remodeled apartments to help pay it off. 

Otherwise grats on getting the first project almost finished!

Carl

@Jessica Pierce, 

@Kurtis Marsh gave you the correct info for Maine. 

Your tenant was at least decent enough to give you plenty of time to prepare and line up a new tenant. Especially in the current rental market in Maine, you will have that unit rented before she gives you the key! 

Also gives you a chance to raise the rent again and actually earn more money because she is moving!

I like finding the good stuff in most situations :)

Carl

@Michel Bamani I agree with everything @Bethany Turon mentioned above. Also, Auburn and Lewiston do have separate Housing Authorities so be sure to contact the correct one to speed things up. 

I would also ask them for a link to the HMS Pal site. This makes it easy to see who gets what if you have multiple people from the same housing authority on section 8. Throughout the year the tenants portion can change as their income or guidelines change.

Be sure to ask for the current HUD Fair Market Rents for your area. This is pretty much the most that the housing authority will be willing to give you for each recipient based on the number of bedrooms.

Asking for rent increases is really easy and just requires a letter to the Housing Authority with the new rent amount. The increase takes at least 60 days, so if you want an increase for February you need to get the letters out before Dec 1st.  

Grats on the 5 unit!

Carl

It is great to read all the achievements people have had this year!

Bought my 7th investment property (4 unit)(22 units total now) here in Lewiston, Maine with the business and nothing from personal. First purchase that I was able to do that. 

Also all repairs and capital improvements came strickly from the business again this year. 

As a bonus I was able to return some of that early investment money back in a steady monthly transfer each month!

@Nathan Hann I would try posting on Craigslist. Explain what work you have like you did here. Good luck, it is tough to find any contractors right now that aren’t booked months in advance. 
I've never tried to use Facebook marketplace for this but it might work also.