All Forum Posts by: JP Krueger

Thanks Amanda, ya I guess the judgement is what I would be seeking through small claims, but I already have it. Since I know the tenants place of work, can I go to the court house and fill out the form for garnished wages or is it complex enough that I should use a lawyer?

Hi BP, I recently evicted a tenant for non payment of rent and I received a judgement for them for about 4k. 

When I take the tenants to small claims court, how do I figure out their current residence?

If there are multiple tenants on judgement, do I file one form against all three? And do i file it in a town that at least one of them resides in?

Is there a way to avoid small claims since I already have the judgement? 

Any help would be greatly appreciated.

Nick, The property is in Union Square in Somerville.  In my opinion, condo prices in that area will match current condo prices in Cambridge.  I have talked to a few realtors that have echoed this thought.  I plan to spend about 150k on a renovation into more of an open kitchen/living/dining unit with updated kitchens and baths.  I have actually taken out 2 HELOCS on this property to buy my other properties.  I was thinking as the value continues to grow, take out another one in 2017 or use a hard money lender.  Somerville is tough to get cash flow currently, but there are areas around here where multis aren't out of control and the rent is solid.

Darrell, I agree that at some point, when the cash flow doesn't match the value of the place, it may be time to move on and increase cashflow through a bigger property or multiple highly profitable buildings.  The Boston area is crazy, not like San Fran or NYC, but it may be there someday soon.  People have money to spend on these condos, whether it is smart for them or not

Dave, really good points here.  If I can't get a confirmation that I could renovate what is now a rental unit and transfer through a 1031 exchange to something more profitable, then I may be wasting money and time.  For example, if the property was worth 1.2 million pre reno, and 500k of that qualified for the residential exemption and the other amount could go right into another property tax free, no questions asked, then why take the risk and tear the place apart.

Josh, if I werent living in one unit, the house would rent for around $5800.  The value currently is around 900k.  That is around .06%, so clearly not enough for your requirements, which is the reason I don't want to hold onto it if I can do better.  People are condo crazy in this area and are paying 900k for a 4bed 2 bath, or 700k for a 3bed 1 bath.  I love HELOCs, I took out 2 on the property so far and it allowed me to buy 2 more.  If my goal were to retire at the new retirement age of 73, then I would probably hold and see what kind of appreciation it would get over the years. 

Thanks for the advice. What kind of cash flow would I expect? I paid 550k for the property. The area has exploded since.

Ok so I lucked out with a 2 family purchase in 2012 in Somerville, Ma. It continues to appreciate and there is promise of a T stop going in at the end of 2016 which will drive things up even more. With some renovation $ put into the place and 'condoing' I believe I would be able to sell one unit for 700k and the other for 900k. I only profit 3k/month on this place worth 1.6 mil. At what point does the value become so great that you pull the plug and use the proceeds to buy something bigger? And what would you do with 850k of 1031 exchangeable cash with the goal being monthly cash flow and financial freedom? I would appreciate any advice, but remember that 1031 exchange tax free money only lasts 180 days.