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All Forum Posts by: Jen Starr

Jen Starr has started 4 posts and replied 11 times.

Post: Improvements with tenants in place?

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
Thank you!

Post: Improvements with tenants in place?

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
Hi! Wondering if anyone has ever updated a units electrical while there is a tenant in place? I'm closing on a property soon that has existing tenants who are paying well below market value. They'll eventually have to move but probably not until spring. The electrical in their unit is really bad, very few outlets, some ungrounded, just not good. The whole unit needs an overhaul but the electric stuff feels like something I want to address asap. Thanks in advance for any suggestions! Jen

Post: 3 family built in 1750, deal falling through?

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
I requested work be done on a home I have an offer on based on the inspection. All of the work requested is structural. The property was built in 1750 and stone walls in the basement need reappointing (they're falling down), rotted wood beams need support, rotting floors, damage ceilings, majority of the outlets are ungrounded, etc. Estimates from a contractor, a mason, and an electrician came in at ~23k (pretty sure it will be more). The owners are investors/contractors who bought in 2007 for 195k and didn't do much it seems. The property was listed for 459 and they accepted 430. If I had known it needed 12k in electrical updates, etc I would never have offered 430. There is a lot more than structural/electrical work that the property needs like appliances, many cosmetics and two furnaces are ~10 yrs old. The property could bring in 4300-5000 gross rent (500-600 per room is market) so the value is there but when I add up the 25% down, cosmetics updates, appliances, furnaces, and *basic structural work totaling at least 25k* I lose interest. Initially the sellers agent implied they would be willing to do the work (the agent is the owners daughter and he's apparently a big contractor). Now they're saying we'll give you a 10k credit. I guess I feel like, well...never mind then. Its no longer a good deal and I'm getting a negligent owner vibe which makes me think they'll be more surprises along the way. Am I wrong for thinking the structural stuff and electrical stuff that came up on the inspection should be addressed? If this was a 250k property I'd expect this nonsense and assume it was my nonsense to fix but this is on the higher end of cost for a multifamily in this area. Super discouraged. I was hoping this would be my first multi 👎

Post: Multifamily built in 1750 with low ceilings

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
@austin fruechting, yes, net after mortgage/taxes/insurance/cost to LLC. It's a ~400k property, I'm putting 25% down. I anticipate wanting time (a month) between current and new tenants to paint, improve. My goal is to have it maxing its potential in a year. Assuming that I rent at the lower end of market I'm hoping to earn about 22% on the money down. If I get what the agents/area rents say I can get I'll be getting closer to 30%. Things will come up to knock that return down now and then (like new furnace or something) but it's a good place to start I think. I've been looking for a few months and this is the first property I've seen that seems to make sense. Other properties have required a team I don't have (yet), like contractors.

Post: Multifamily built in 1750 with low ceilings

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
@austin fruetching I feel like I'm talking to a famous person, I just heard your podcast! Did I spell your name right? The rents are 1500-1800 for the 3 bed, 2000-2400 for the 4 bed, and 800-900 for the 1 bedroom. It seems I can safely ask for 1650, 2250, and 800 given what's typical for the neighborhood. Small private university nearby. One block from the water and on the main strip of restaurants/bars in town. STILL IM SCARED hahahaha. I'm guessing it'll be 6-9 months before I can turn over the current tenants and spruce things up for market rents. I have had a contractor, an electrician, and a mason over there and we're asking the current owners (who are contractors) to do a lot of repairs. All related to the foundation and electrical systems You guys are great. I really, really appreciate the feedback and the forums in general.

Post: Multifamily built in 1750 with low ceilings

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
Thank you everyone for your comments and suggestions! The kitchen ceiling height doesn't seem to bother the current tenants and the area in the hallway doesn't seem to bother the tenant there either but I agree it could limit too dollar. The multi is located on a very desirable street in a college town and the belief of my agent (who owns a multi in the town) and everyone else I talk to is it won't matter, that it's just too desirable a location. My target is college kids so it's possible the one unit with a low kitchen ceiling could be for women specifically. Not the worst thing. After my expenses it looks like the property will clear ~2500-2800 monthly. It's a charming area. All that said this will be my first multi (assuming I move forward and we agree on a counter offer post inspection) and I'm really scared. Really really scared 👀 I'm in RI and would love to meet up with more seasoned multi owners sometime!

Post: Multifamily built in 1750 with low ceilings

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
@Thomas S, the second floor kitchen ceiling height is 5'11". So you really think it's nothing to worry about? It was an addition, I assume done in the 80s, maybe 90s. You may be totally right, it's hard for me to tell if I'm just scared. I have another rental that's been a great experience for the past 9 years. This is my first multi. Thank you for your thoughts! I really appreciate it

Post: Multifamily built in 1750 with low ceilings

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
Shawn that is super helpful, thank you!

Post: Multifamily built in 1750 with low ceilings

Jen StarrPosted
  • Jamestown, RI
  • Posts 11
  • Votes 4
Wondering what people think and know about of low ceilings. I just had an inspection on a property that at first glance looks great. 3 family/8 bed in a college town and on the most desired street. Current tenants are paying below market. Building needs about 25k of updates to foundation and electrical that the owners are willing to do. My big concern is that the ceiling height going down basement stairs and coming down from third floor is so low that at 5"4 I'm hitting my head. The second floor kitchen, clearly an add on at some point also has weirdly low ceilings but the current tenants don't seem to care, they just love the location. Since all utilities are in the basement and the first floor units washer/dryer it is inevitable tenants will go down there. And obviously the person in the third floor unit (a very petite woman haha) will be coming and going from her place. My concern is that if someone hits there head and falls I'd be liable. Despite the fact that as far as I know that hasn't happened since 1750. Numbers are good. That's not my concern. Area desirable, etc. Are there codes for these things? Thoughts appreciated! Jen from RI

thanks Jon! Yes, way more emotionally invested in the beach community. I hear you. Hopefully it's not an either or though. And I'm very clear that the numbers have to work. If I walk away from buying in a community I love it won't be filled with prolonged grief. It's first and foremost about ROI 👍