All Forum Posts by: Christopher Freeman

The second amendment prohibits governmental restrictions on the private ownership of firearms. It does not supersede the right of the property owner to demise their property as they see fit. States that prohibit landlords from making their own determinations on this matter infringe more than those which remain silent.

My policy is don't ask, don't tell.

My home state of NH has put a moratorium on the eviction process.

At the same time, I have a roommate who appears to have fallen off the wagon, perhaps as a response to him losing his job in a mass layoff.

His behavior has been erratic, he has started having frequent "social" calls lasting 5 minutes or less, and he is bringing people into the house who make me uncomfortable and who scare my partner.

During this period in which states have placed a moratorium on evictions, is there any possible relief for people who need to get rid of someone who is renting a room in their primary residence?

We will obviously try to handle the situation discretely and on a voluntary basis first, but curious about legal status of issues like this.

We are preparing to record a walk through of all apartments that will be turning in the next 60 days. We will only need to access the property once, rather than being in an out of rentals where we could get sick from our tenants or be carriers transporting the virus from one home to another.

Considering that literally millions of people making money in real estate, it seems a little naive to make this kind of a proclamation. 

I live in a market where small multifamily properties trade for 60-150k/unit. I own a duplex that I paid $300k for, have $10.3k in taxes, pay all utilities, services, and repairs, and I still have over $25k year of cash flow with headroom. The property has also appreciated by about 10% in the past two years.

Depends on what you consider reserves. Our operating reserve is actually a little depleted due to emergency repairs that had to be made to one of our properties (a fun story about seller fraud, actually, but that is a story for another time).

However, both my business partner and I have fairly substantial assets for our ages and relatively easy access to private credit. We have also done a good job of building a tenant base of mostly salaried employees working in critical industries. We will be fine, but we are taking this event as a grave reinforcement of our belief in the importance of reserves.

Valley street is not that great of an area. Lots of drugs and poverty.

Proceed with caution buying in Keene. We just had 300-400 new construction units added to inventory, which is a 6-8 percent increase in supply. Enrollment is down several hundred at the college. The biggest employer in town just lost its biggest customer and is downsizing (just laid off a few hundred people last week, more expected in June). A few other employers have also gone through recent layoffs.

We do a small box of chocolates and a well-wishing card during the December holidays. It costs $5-7/tenant/year and the response has been overwhelmingly positive. I don't balk at reinvesting $100 of the $100k we collect each year in customer relations.

Owner values building at a 10% cap rate based on the above numbers. They are not taking into account physical/economic vacancy, and in my opinion they are low-balling management (5%) and maintenance (5%).

However, there is easy go-get from raising rents on unit 3 (+$500/month). There is also a moderately easy opportunity to turn the 2 bedroom into a 3 bedroom by finishing an attached "shed" area, which would add another $650-750/month.

The ask price is $444,100, and the seller is offering long term financing (at present point in negotiations, 30 year amortization with balloon in year 15) with low or no money down (potential to secure with a lien on another piece of property). We have not discussed rates, but I would expect something 4-5.5%

Building is in turnkey condition. All utilities are separate (though paid by landlord). Rents are at high end of what is possible in 3 of the 4 units. Our market has recently had several hundred new units added to inventory, however those units are priced substantially higher than even what this building generates.

Property tax rate is over 37/mil, and it is likely that the assessment would increase following the sale (not necessarily a full reversion, but it is a risk).

Note: I understand that properties under 5 units are not conventionally valued using the income approach, but there are reasons why I would consider doing so with this one.

Would you do this deal at $444,100? If not, what price would you feel comfortable with?

@Neil Gulden @James S.

James provided some very high quality insights into renting to the students. One addendum I would note is that Keene has occupancy restrictions based on zoning. Unless you are zoned as a rooming house, you need to be careful exceeding four unrelated parties. Of course, be careful that you don't violate Federal fair housing laws in the course of complying with the dictates of municipal government.

Neil -- I would potentially be interested in managing your property. Please DM me to start a conversation

@Cameron Stewart, is your business partner in the Keene area? Why Keene specifically for your BRRRR?