All Forum Posts by: Jeremy Dugal

I agree with Ryan.  I would convert to propane and get it down to one furnace per building.  Likely would be quite costly initially as they would have to convert all the zones to one furnace versus the two per building along with converting the furnace itself, but much cleaner and less of a hassle in the long run.

One thing I have had  success with is getting rid of a furnace completely and putting individual propane wall units in each apartment.  https://www.rinnai.us/gas-home-heating/direct-vent....  This is is highly dependent on the size and layout of the apartment but has worked very well for me for 800-1000sqft units.  I have combined this with a tankless propane water heater and found that everything works together nicely even in extremely cold northern Maine.  I believe this approach is more cost effective from an installation and equipment standpoint.

As far as heat pumps are concerned I thinks its highly dependent on what part of the state you are in.  A lot of people up north have them but also have a back up supply for heat due to them not working well or efficiently when the temperatures get very cold.  Sub zero.  The cooling aspects of them in the summer are nice however.  

Hello.  I have a couple interested in renting from me that wants to bring on a 17 year old minor, who is not their's, but is "on her own" and a friend of the couples.  Would this even be legal if I wished to entertain this offer, and would the majority of you just steer clear, even if they meet all other requirements?

Hello.  I will be using Quickbooks Desktop for my 2018 booking keeping on long term rental properties.  I am learning how to use it and practicing and am having trouble with a specific scenario.

I receive payments via deposit into a  bank account from my property manager.  He accepts payment, takes his fee, and deposits the remainder.  How do I enter this so that the tenant gets full credit for their payment while at the same time the management fee is deducted, and everything comes out in the bank register as it should so I can reconcile my account.  Thanks in advance.  

@Andrew Michaud  I understand your concern.  I assume you are talking about Limestone, Washburn, or Fort. Not only is the tenant pool in these towns typically low but the quality of tenant is potentially low as well.  So you're not only looking at finding tenants but hopefully finding good ones.  Don't discount the amount time you will have to spend in managing all of this if the tenant is not right and put that into the equation.  I don't know if you have a full time job or not but management on top of work can get old fast for small returns.

I find one of the keys to getting good tenants in this area, and something that is slowly becoming a trend around here, is to offer something other then the norm.  And that would be a nice, clean, updated apartment.  I don't know if you've had the opportunity to look at any of the inventory in this area but most is old, worn, and outdated.  I have had numerous potential tenants complain of this and get super excited to see something new.  They are willing to pay more for this as well.  Relatively inexpensive updates, if you can do the work yourself can go a long way.  Floors, paint, vanities, kitchen cabinets.  Also there seems to be a lack of exceptional service when it comes to landlording.  Good communication, prompt responses to calls and emails, and getting problems taken care of quickly are something that people are not used to, extremely pleased with, and can go a long way.  Essentially run it like a business that you really want to succeed.  If you can do these things and gain a good reputation and network, then you can fill these units with good people.

Now the numbers themselves don't look bad.  I like the high appraisal and the large amount of immediate equity that you would have.  You could ultimately use this equity for money down on more buildings in either  Caribou or Presque Isle area where you wouldn't have to worry about vacancies as much, could be a little more selective on what you're purchasing, and be in a position to jump at any opportunities that may arise.  You could also use some of that to update the two vacant units you would have and get on the path to transforming that building and offering something different. Anyway I could go on and on.  Hope this helps 

Hello.  I have some potential tenants that are interested in renting an apartment sight unseen above and beyond some pictures online.  They are from away.  Should this be considered a red flag even if they seem to fit all other screening criteria.   Just asking because I would probably never do this myself.  Thoughts?  Thanks in advance.  

Hello. I am purchasing a triplex as an LLC and am currently looking at insurance. I also have additional properties currently in my personal name that will be transferred to the LLC. When I contacted my insurance agent, he suggested that I insure them under my personal name and add the LLC as an additionally insured party to the policy versus getting commercial insurance. The bank seems okay with this approach. Has anyone had any problems doing it this way. Thanks

Thanks for all the info everyone.  Very helpful.  I will definitely be talking to the local code guy as well. 

Hello.  Just wondering if anybody knew of any resources about or knew the law regarding fire escapes or number of exits for small multi-families in Maine.  Am in the process of purchasing a triplex and can't find any info online.  Also rules and regs regarding hardwiring smoke and CO2 detectors.  Thanks. 

Hey Marty.  Just wondering what you consider to be remote areas of Maine or if you have any examples.  Thanks

Hello. I am currently in the process of purchasing a triplex in the town I live in. This property will be purchased by and LLC and I am working with a commercial lender.

I also have a duplex that I purchased last year under my personal name. I want to transfer this property into my LLC. The numbers on the duplex are as follows:

Purchase Price: $60,000

Appraised at: $80,000

Remaining Mortgage: $45,000 at 4.625% for 14 more years

Monthly Payment: $370.28

The purchase price of the prospective property is $73,000. The bank wants 75%LTV. My plan was to use equity in the original property for money down maybe with a little extra cash as needed. My hope was that they would transfer the first property to the LLC just by re-writing the note as all of these transactions are with this one bank.

The lender called me today and asked me if I would mind consolidating both of these properties into one loan. This would make it easier for him to transfer the personal property to the LLC was one reason given. The terms are as follows

$120,000 loan for 20 years at 4.8% for a monthly payment of approx. $780

Does this sound like a good deal? Am I missing something because I think I like it? Will this prevent me from selling the properties separately in the future or using their equity separately. Are these two properties always going to be a package deal. Do I need to ask the lender any further questions before preceding. Please Advise and thank you in advance.