All Forum Posts by: Josh Robbins

Hi All,

Does anyone have a recommendation for a property manager in Fitchburg, MA?

Thanks

Thanks Mike Dymski , those are all great factors to consider. My biggest concern is the increase of cost to the tenants and I may even consider lowering rents at first to compensate for this but further analysis needs to be done on the units. Obviously this lowers the impact on value should I do that. Great point on the bank costs too, I really appreciate it as those will certainly play a role.

Nancy Curran my goal would be to sub meter but I haven't looked into it yet in depth. Chris Soignier thanks so much for the feedback. I wanted to make sure I was thinking it through appropriately. Tenants paying utilities is the common practice but I realize I can't do it until leases are up or push common areas to the tenant.

Hi All, Newbie question for you all... I'm looking at a 6-unit right now and I believe there's a value add opportunity as the landlord currently pays about $8k annually in oil and electric. My plan would be to purchase the property, split the utilities and have the tenants pay them. Then refinance based on an NOI that would be $8k higher. Here's my question...If the prevailing cap rate is 8% then pushing this $8k to the tenants would increase the value of the property by $100k right? Upon refinancing, assuming 75% LTV, I could "cash-out" $75k? Just want to make sure I'm not missing anything before I make an expensive mistake. Thanks

@Dominick Fiordimalva I am still very much looking in Troy. Taxes in NY can make it difficult but I like what's going on in the city. I'm focused much more on the downtown/RPI areas as I think you get a better quality tenant or you can get student rentals which can provide a better return with the increased rents you get with students. 

Hey @Dominick Fiordimalva, i've been looking in Troy for the past 6 months now and actually got a place under contract on 4th street but slightly further north (it fell through due to structural problems not worth fixing).  The area you're looking at is priced at $45k for a reason.  It's a tough area and can have some difficult tenants.  I mention the deal i had under contract because after it fell through, the owners had to start the eviction process on tenants they signed just 4 months earlier.  that's not to say there's not opportunity there but you should expect challenges and factor accordingly.

A couple thoughts on your numbers... your taxes are low, they're closer to $5k, In Troy you can get the Tax Roll from the city website to see what the taxes are in 2016 and you can also look up the school tax. Also i don't think $5k is a very conservative number on M&R, even if you're including CapEx, which i assume you are. you're probably going to have more repairs to do with lower quality tenants and older homes, potential eviction costs and CapEx will cost the same whether it's a $45k duplex or a $150k duplex, beware of using percentages. i would use at least $6k for conservative numbers and i would say it's closer to a 9.5% cap rate.

i also wouldn't trust a 3 bedroom and 2 bedroom getting the same rent until i saw the leases myself.

Hey @Bennett V., welcome to BP and best of luck with your future real estate investing.  I'm new to investing as well and I've  been looking predominantly in Troy, NY but also a little bit in Albany and surrounding areas.  I have not looked into the Saratoga market but from what I've heard, it's a very different market than Albany.  Prices are much higher and you're looking at a very different clientele for the most part.

As for your question on home ownership, i'll say that like anything else it depends on your circumstances but personally, if i could go back in time i would do the "house hacking" method that is talked about so much on BP.  It's the best of both worlds and can really set you up for success.  Take a look at some of the forums discussing the topic to see if it works for you.

Good luck

Thanks @Account Closed, the $75/mo estimate in the earlier post was with financing. I actually plan on financing this 100% by leveraging a HELOC. That's obviously keeping the cash flow numbers lower. I really appreciate the response and understanding your criteria, it was very helpful.

thanks so much @Account Closed, this is extremely helpful.  It appears that your numbers are for an all cash purchase, is that correct?  Is your criteria for cashflow based on an all cash purchase?

Hey @Account Closed i agree, the area is extremely choppy.  i would not invest in south troy (or north Troy for that matter) and agree with your comments on nanotech, i just hope it will support the area.  i am in it for the cash flow though but like the downtown troy area for it's potential for appreciation (although not counting on it).  I think the albany med school area is a good location too although i don't think i've ever heard anyone say the albany area has good school districts, but maybe i just need to look into it more.  i'll connect with you as i'd love to hear your thoughts on the albany area.