All Forum Posts by: Kenneth Hynes

Ensure  you know hte difference between what is required for zoning and code enforcement .   I recently bought a two unit  in Easton, and  the third floor had been turned into a separate living unit with kitchen.  I checked with the zoning board to ensure it was zoned correctly , so I figured it was good.  Did not realize the previous owner never registered the unit with the city,  so when Code enforcement did their inspection so I could rent the unit , found 4+ pages of issues needed to fix before I could rent it out   Took me a while to get all the items fixed and the unti rented out 

Little late to party but thought I would share my experiences.  Looked in the AVR area last summer for a small multi -   There is some inventory , but just be prepared as most of the housing stock around here is old.  Bought a two unit  in Easton , spent a lot of sweat equity and $$ just to bring it up to code so I can rent out  other unit.     Placed it on rental market and got  15+ applications in the first week or so , and over 5  meeting the screening criteria I had set up with the agent .  So there is demand for rentals out there , just have to be active and jump on the good deals as there is a-lot of competition in the area 

I am doing a live in flip for a house and looking at the floors underneath the old green shag carpet I pulled up in the living room ..    going through several options and looking for feedback on keeping the floors, or replacing with LVP flooring .   The house will eventually eventually be turned into rental  

Option 1     Keep / re-finish floors ( Current condition 

Option  2  LVP  -   Heirloom Pine   LVP (  Used some scraps from previous reno  

Option  3  Essential Oak 

Option 4  Tupelo Oak 

The trim is solid wood I would look to keep -  There are a couple of pieces of wood trim  throughout the downstairs that are really nice.  The paint is Sage grey 

thanks for any feedback 

Any comments  / Feedback appreciated 

Doing a live in BRRR of a two unit and ripping up the old green shag carpet . Inspecting the wood floors beneath - Do you think these can be saved , or just replace

with LVP flooring ?  The house will turn into a  Calss B rental  in hte next year 

Hello All - Making the transition from SFR to multi - family , and have studied some of the syndications and MF investing books/podcasts out there. Really interested in the underwriting process ( Day job used to be engineer and really like numbers and problem solving) so am looking for training , webinars and samples of how to underwrite MF deals . Any feedback appreciated

Go to property insights here on BP or rentometer  to get an accurate  rental rate -  think $1400 is too high -  Also check with a local PM on the ground that will actually be managing your property 

Have you checked with a local lender yet ?  4.300 seems high for owner occupied financing  right now.  

If you turn it into a SFR , tenant should handle the utilities to include trash , Most SFR landlords cover PIPTI, mgmt, vacancy , and repairs

Check your 

Hello BP Community - Looking for some feedback on how to proceed on how to scale from current Single Family rental portfolio (5 SFR) into the Multi-Family to get a better return on my equity. Looking for feedback on which one(s) (looking to sell 1-3) would you sell min the next 90-180 days )

# 1

When Purchased / Cost 1996 / $67K

Location : Fayettevill NC Type : 2/1 SF house (1400SF)

Value ~ $85 K Debt : $0 Equity 85 K

Rent 650 Debt Payment 0

Other expenses PM , Taxes Insurance $250

Cash Flow (monthly) ~ 400

Pros Paid off

Cons: 23 years depreciation already taken

no appreciation in market ( military town)

tenant on lease until May 2021 - so cant sell to owner occupant limits

no rent growth last 6+ years

# 2

When Purchased / Cost July 2002 $74,000

Location : Rosepine LA Type : 3/2 SF house

Value ~ 129,000 Debt 0 Equity 129000

Rent 750 Debt Payment 0

Other expenses PM taxes Insurance $175

Cash Flow (monthly) 575

Pros

recently updated after last tenant (1/2019)

low taxes ~ 800 year

Cons:

Hurricane damage to roof Sep 2020 current insurance claim on

Tenant evacuated and never returned – currently vacant

town hasn't show a lot of growth last 10 years

#3

When Purchased / Cost 2004 - 174000

Location : Colorado Srpings, CO Type : 3/2 SF House

Value $290K Debt ~$95K Equity ~$195 K

Rent 1100 Debt Payment 730

Other expenses PM Maintenance – 85

Cash Flow (monthly) ~175

Pros

~ 7K recent CAPEX (siding / Windows , New exterior paint ) plus $8K new rook ( insurance claim)

long term tenant (+6 years)

Good market for appreciation

Cons:

Under market rent ( Rentometer and BP Property insights says 1350 is market rent )

Lots of equity – not much cash flow

#4

When Purchased / Cost 2010 / $129000

Location : Augusta GA Type : 4/3 SFR

Value: $176K Debt ~$92K Equity $84K

Rent $1075 Debt Payment $850

Other expenses PM Maintenance) $175

Cash Flow (monthly) ~60

Pros

tenant gave notice ( moving out 11/29/2020 )

Solid rental history

Cons:

Lots of repairs last two years

# 5

When Purchased / Jan 2013 Cost 198,000

Location : Olympia WA Type : 3/ 2-.5 Townhouse

Value $357,000 Debt $150K Equity $207K

Rent 1875 Debt Payment $1275

Other expenses HOA / PM - $ 225

Cash Flow (monthly) $375

Pros

Solid rental – great school district

Left in 208 - still under 2/5 rule if sell

Cons:

My long terms goals is Passive income  - whether  SF or MF -  and looks like MF  can bring in more Cash flow for my current equity  

Thank you for any feedback

Hello - BP Community - I am looking for someone that has gone through the 1031 process into a Delaware Statutory Trust (DST) I have several SFR that have built up some equity and I am not getting the return on equity anymore , so looking at options in the Multi family as well as DST space . I am not looking for brokers , just investors that have 1031'ed into a DST so I get get their perspective and how it went for them , and any tips if I go that route

@Sarah Buchanan  How many other tenants applications have you had that had passed your screening criteria .    I think  we are all going to be running into issues reference tenants impacted by COVID , and this couple seems better prepared to handle the situation in the short term .  What was husband's occupation pre Covid and how soon is that going to come back in your area?  

@Jake Peetz   Great jon -  For the Repeat part are you looking in the same general area ?