All Forum Posts by: Dan Curto

John - I'm new at this, but have been analyzing properties in Providence and Metro west (MA) for a few months now.  This deal would make me too nervous, but take that from someone who is fairly risk averse.  Maybe I'm missing it, but I don't see much allocated for repairs/maintenance/cap ex on your report.  That alone would make me pretty nervous as there seems to be little cushion.  I assume you are planning to manage the property on your own, which is reasonable since you are not that far away in Foxboro. 

Not sure where you are in this process and if you have other properties.   For me Providence and most of Massachusetts feels priced pretty high, especially compared to rents and for Providence you have to add in an extremely high tax rate for non-owner occupied buildings.  I am being pretty cautious at the moment because it feels like there is little appreciation available and if the economy turns even a little it could make these close deals a huge albatross.  

Thanks everyone for the replies.  As to John's questions, the units and building needs capital improvements.  I have the capital to carry the building if necessary, although ideally we'd do it one unit at a time.  

First, I’m new to Bigger Pockets and real estate investing generally. I’ve lurked for some time, read books, listened to podcasts and am now ready to jump in.

My first question is I’ve found a potential multi-family that is reasonably priced and would cash flow nicely if rents were at or near market rates. At market rates the property cash flows around 15-20%, at current rent rates it cash flows around 3%. The property is fully rented with long term renters that are paying about 66% of market rates. On the one hand this presents a buying opportunity. But I also see big hassles if I just raise the rent by 50% after the current leases run. Thoughts on how to think about this situation?  

First, I’m new to Bigger Pockets and real estate investing generally. I’ve lurked for some time, read books, listened to podcasts and am now ready to jump in. My first question is I’ve found a potential multi-family that is reasonably priced and would cash flow nicely if rents were at or near market rates. At market rates the property cash flows around 15-20%, at current rates it cash flows around 5%. The property is fully rented with long term renters that are paying about 66% of market rates. On the one hand this presents a buying opportunity. But I also see big hassles if I just raise the rent by 50% after the current leases run. Thoughts on how to think about this situation?