All Forum Posts by: Tammy Richards

Agree with above. The drama will never end. Give them both notices. 

The only one I know of is Armentrout Realty in Bath. Sam Armentrout has a good reputation as a realtor, but I have no experience of the property management services associated with her.

Hi Garett. I know the Brunswick area - I've actually been looking for multi-units in the downtown area of Brunswick, and have not found a good deal yet! The property price and rents you describe sound good if the units are in fairly good shape (i.e. rentable), and if the location is decent.

It's great that you have a background in the trades, it's really helpful to have those skills to apply to a fixer-upper. Indentured servitude is great training to be a landlord... speaking of which, your girlfriend's aunt is really a great resource. Ask her for advice ALL THE TIME, including who she uses for repairs when things are beyond your skill level. 

Because you'll be living with your tenants, you really want to be careful... when you advertise the units, make sure that you let people know that the "owner lives on the premises" ... some potential tenants will screen themselves out, which is a good thing. Also take a look at utility costs - if you can separate them out and have tenants pay their own, it's helpful, because they treat the heat and electric use very differently if they are on the hook.  

Best of luck, I think you made a great decision to purchase a multi rather than paying rent to somebody else. It's how I bought my first house, and it took me way longer than you!

@Bill 

@Bill Hill welcome back and welcome to Maine. Regarding how much you can qualify for, if you have a bank you like I bet they would be happy to help you figure that out. But if you want a link to online calculators, here's one from Bankrate - which can give you a rough idea anyway.  https://www.bankrate.com/calculators/mortgages/new...

Congratulations on getting your finances together to take the next step!

@Jesse Grant thank you!

@Harrison Smith, thanks for those suggestions!

This is a question I have as well. If anyone has any recommendations for mortgage lenders in Maine who have experience/are good to work with for folks with income producing properties that are seeking a home mortgage, I'd appreciate specific recommendations.

I don't know if this is what you are looking for at all, but when I was a tenant in Boston, our landlord gave us a 5% discount if we paid by the 3rd of the month. We ALWAYS paid by the 3rd! 

Wow - how old are you? Wish I had your planning skills when I had student loans...

So, here's my "slow down" advice, which isn't what you've asked for, but I'm a crotchety middle-aged lady with experience both as a live-in landlord in Portland, and now as mutli-unit owner who hires out the property management.

My advice is to not get there quicker, but spend the next year learning.  See how this first property goes. You'll learn about the unanticipated expenses, the joys (?) of landlording, dealing with surprise repairs, and finding good contractors (especially in Portland area, can be tough to find the ones who will do small jobs). 

The fact that the property is running -750 currently seems to be a pretty narrow margin of potential profit when you move out -- though I obviously don't know how you've calculated expenses, and don't know how much you can increase rent with improvements.  Have you factored in property management when you leave? It can take a lot more time wen you don't live in the building to manage the property.  Trust me - it can be as much work as a part-time job.

All kinds of things can happen over the next few years. Planning is great, but over-planning can shut down the flexibility you might need as you learn more about your building managing property, your skills in dealing with people, subcontracting, and finances, and learn what you and your partner like to do and what you hate. This will all inform your next steps.  

Who knows - you may want to sell property #1 and use profits toward a higher end, or another type of income property in the end.  Or you may really like the building and not mind living with your tenants and live for free. This is all stuff you'll learn.

As far as paying down your debt, I think paying off your largest/highest rate loan makes sense. You may want to accumulate cash so that you can be more flexible with plans. You can put the cash towards your next property, and/or unanticipated expenses with your current property, and/or changes in the economic climate.  If you accumulate cash and decide against purchasing another property, or accumulate enough equity in your current one to draw out funds so you don't need the cash, you can always use it to pay off your debt - if that seems to be the right thing to do.

Enjoy the ride!

Welcome Nicholas. I wish I had been as financially aware at your age - sounds like you have a great background and experience for the journey.

Not sure where you are looking to invest, but one suggestion I have is to consider property management resources available when making that decision. That certainly widens the range as you don't have to stay in Maine if you feel other markets are better investments. And, if you want to be truly passive investor, and not be on call with tenants, good property management is essential.  Somewhere with some competition between well-established property management companies is ideal.

Also... and please know that I am not an economist, a real estate professional, etc. - I'm only speaking from my lived experience/gut, and in consideration of the current political and economic instability... but I am in no rush to buy my next property. I am selling one as soon as possible, and I plan on holding profits for a bit to reinvest, as I want to see where the market goes. My sense is that prices may fall, perhaps dramatically.    But again - not a professional, and others might argue counter to this.

In any case, doing research and learning now is a great strategy. And I think no matter what, investing in properties is a good long-term choice. 

Best of luck,

Tammy