All Forum Posts by: Carl Hebert

@Michael Guerra - I own properties in both Lewiston and Auburn. I really like the area and agree with @Cody DeLong on some aspects of the area. Crime is more in the downtown area, but that is not the reason I do not buy in those areas. I don't buy there because there is no room to increase your rent by remodeling. 

If you remodel in that area you do not generally get a good return to your equity for one and second you really cannot increase your rent above the market like I can outside those areas. 

All the buildings are old, repairs can get high quickly and you need to factor that in when you buy. Heating costs are usually high also and the owner tends to pay for that here in Maine. 

Buying in Lewiston/Auburn you should plan on holding and not selling in a couple of years like you can in southern Maine. There are buildings selling now that are at the same price they were 20 years ago! That is a lost of equity in the long term for most buildings, especially in the downtown areas. Something to think about. 

I agree with @Amy A. it only takes a month to month and a half to evict someone and that is only if you have to go through the whole process, court, police etc. Which thankfully I have never had to do lol, I did help a friend of mine when he went through it and if you have a process in place it goes fairly smoothly. 

I feel Maine in general is good for tenants and landlords. Follow the process and it works. 

Background checks/credit checks with application (charge applicants the fee) (eliminates a lot of bad tenants)

full deposit

rent due on the 1st

send a 7 day notice to quit after the 8th of the month

Use lawyer - 30 day eviction notice after the 16th and add late fee if they do pay (4% allowed in Maine)

go to court if it gets that far, if you show and they don't, you win

they show but have no money, you win

Honestly since I started doing the background/credit checks I have only evicted one tenant. 

Pine Tree Legal is almost always at the courthouse btw. Doesn't help tenant if they haven't paid rent, but they may lawyer up.

@Jeremy A. Small town Maine, I would just go into the town office and ask what the complaint was, they need to tell you, and what you can do to make it right. People can be tough over the phone/email, but I find if you take the time and go see them personally it goes a long way in helping defuse an issue. 

I grew up in Hebron, ME, just saying lol :)

Carl

@James Sellars There is a group called Southern Maine Investors Meetup, that @Ivan S. usually sets up. It is always posted on Biggerpockets. 

@Eric A. I have done this before and it can get complicated. You will want to get a couple of bids in for the job unless you are really in love with one contractor (it happens!) 

I did not see this asked above, but are you also going to set it up with a house meter? Separate the common areas from the tenants? Otherwise you have to make sure to let the tenants know if they are paying for any of the common areas. 

Good luck! 

Will be there tonight. 

Thanks!

@Ivan S. - I will be missing it by one day lol, flying back to Maine on the 16th! 

Welcome to Maine. Like previous posts, commuting in Maine in general is really not bad. I used to work in Portland and commuted there from Lewiston/Auburn. 30-45 depending on where you are in either town.  

Be sure to hook up with one of the rei groups once you get here. 

Carl

@Jeremy Bloom What town is your building in? Sounds like some of the buildings I have in Lewiston and Auburn lol.

I usually replace all the electrical when I do a remodel on an apartment. My property manager is also a journeyman electrician and works with a master electrician who pulls permits and inspects his work. We put a panel in the apartment and run all new wire from there. New hanging ceilings give them access to the upper walls to run wire on the upper floors and first floor is easy because of the basement access. 

I have not regretted spending the extra money at the start as it saves on headaches down the road and puts the electric up to modern code. 

Glad you found a person willing to look at it over time and get it patched up for you. Like others have said I would really look into redoing the electric one unit at a time. If you can swing it I would evict one and move the other tenants into the finished one as you go. 

@Eric Pierpont I was checking out the population growth for the area and I do not know how they would fill 240 1br apts! Perhaps if the siphoned off all the tenants in other apts in the area that are working in the medical industry here. With the new apts on Spring st in Auburn and the other project on Lisbon st in Lewiston taking a big bite out of the apartment shortage in this area, I think the lofty 240 is going to change to a mix of 1br 2br and possible 3br, especially if they try for any government funding.

@Brian Mitchell You are welcome!