All Forum Posts by: Dilman R.

Allan,

Thanks for your helpful insight. What do you think of owning single family rentals? You make a good point of people heading north away from the City and buying up single family. Rent won't grow as much as it would on a multi family but could be a safe investment in terms of reliable income and small appreciation. 

 Thanks,

Dilman

Drove up to Torrington over the weekend and noticed a lot of brick commercial buildings with boarded windows. A lot of vacancies? What are the big employers around there?

Also, which are the best neighborhoods for multi families? Saw single families had some of the best areas but would like to get a better insight. How's the market? Any info would help.
Thanks,

Thank you all. I appreciate your feedback and will consider it as an viable option.

Hello BP,

I am having trouble deciding including utilities as a flat fee in the rent. I know utilities fluctuate based on usage, the season and the market (I'm in Connecticut) but since I'm house hacking, and only one meter, I'll put utilities under my name.

The rent is enough to cover P+I, taxes, pmi and insurance. It's a 3 bedroom 1 bath home and I am going to be living in the basement. I will build a bathroom in the basement and will live in the property for the required FHA time (1 year).

After that, I will move out, and increase the rent due to the basement now being available to the tenant. So far I have estimated $50-$200 in out of pocket expenses that I will need to cover and that is based on utilities. I won't know how much a bill will be but will contact the utility companies in my area to get an average.

Questions for BP:

Should I require tenant to put utilities under their name and I pay them for my pro-rata share? Does having an FHA loan prohibit putting anything in anyone else's name?

Should I split utilities with tenant and lower asking rent to offset?

Should I use a special formula to come up with a calculation?

Thank you!

Hello BP,

I got an opportunity to submit a bid for a single family, 2-story, with large basement and garage, 1,302 sq ft, on the market for $419k. I got to see the property beforehand and has been recently renovated with the opportunity to add a 2nd full bathroom (4 beds 1 bath). However, it is being marketed as 2 beds/ 1 bath. Should I make my offer as if it were for a 2bed/1bath? or Up my offer for the future benefit it'll have of adding a second bathroom and using 4 of the the rooms (1 master/3 smaller equal sized bedrooms) as 4 beds? Or treat it as a 3 bed/1 bath with an office suite?

Let me know your thoughts. Thanks

Dilman

I didn't think this post would get as many responses as it did but thank you everyone for the great advice. Glad to be part of this community.

sent you a message

Hello BP,

I am currently under contract for a 2 bed, 1.5 bath condo (recently rehabbed) as my first investment. I offered $267,000 (25% down payment) with seller to pay all closing costs. The HOA is $350 and will eat into any profit margin I was hoping to have. I can market this unit for around $1,800 - $1,900 (high end).

I have reached out to the management company and asked for community policies and any relevant information but nothing from the seller. Closing is set for Aug 26. 

So far, my estimated monthly payment is $1,535.16, which includes P+I, INS, RET, and HOA. If I rent for $1,800, I'm pocketing $264.84 each month but i'm not taking into consideration vacancy cost, capex, repairs + maint. (recently rehabbed), and management (I'm managing it myself).

Only thing is, I have a decent amount of equity tied up. Does it seem worth having $66,700 tied up earning me 4.78% CoC or 11.84% 5-year annualized return? Does this seem realistic for a condo in the northeast?

Also, should I start marketing the condo for rent even though I have not received the financial budget and documents from the Association?

All feedback is welcomed.

Hello BP,

Any Connecticut investors who have minimal or decades of experience investing out of state? What has your experienced been like? Where are you investing and why? What are your thoughts on the future of real estate investing in Connecticut versus out of state?

Yeah that's the route I want to go. Thanks for your advice!