All Forum Posts by: Aaron K.

What's the best next move for me?  My portfolio consists of 11 doors in 5 buildings.  One building is 6 years into a 30 year mortgage, and we're breaking even on it.  The other 4 buildings are each 95% paid off (one is completely paid off) and the cashflow is great.  However, I would like to grow the portfolio and I'm wondering if I should double down with a cash-out finance on the 4 buildings that have equity.   I'm just not sure exactly how the math would work.  If I can wind up doubling the portfolio size and retain my cashflow that would be great, but I need to ensure I can then grow that cashflow over time as I begin paying down the debt.  Again, not sure exactly how that would all work out, I'm hoping some of the more experienced brains here can shed some light on the best way to go about this.

Thanks in advance for any insight!

Absolutely, send me a message. I've never been to an REIA meeting but I've been interested - what sort of stuff do you do/discuss there?

Welcome, I own 3 rental properties in the area - East Fishkill, Poughkeepsie, Carmel.  One commercial building, one single-family, one small apartment building.  Shoot me a PM if you want, I have a phenomenal agent, attorney, and inspector if you're looking for recommendations.  

Figure out what they'll be worth after renovation by researching local comps.  Then get a few contractors to give you quotes for full renovation.  Add that to your acquisition and holding costs, and you'll know if it's a good deal or not.

On your initial visit, just look for any major damage or repairs needed, talk to tenants to gauge their level of happiness living there, get a general idea of condition.  Any deferred maintenance?  Make sure you look at the attic and basement to see condition of plumbing, heating, and electrical.  If it looks good, make your offer contingent on due diligence.  Get your inspector over there, re-negotiate if necessary, and if all looks good you're good to move forward.  Get Estoppel agreements from all tenants, verify all numbers on paper, etc.

I don't know that market specifically, but I usually use Craigslist.com to check real rental rates in my area, as well a  rentometer.com for a general idea.

Or invest north of Westchester.  Putnam, Dutchess and Orange counties are ripe with multifamilies that cash flow.

WAY too much money to set up an LLC. As said, you can do it online for a couple hundred bucks maximum. Or have an attorney do it for under $1000. Personally I keep each property under it's own LLC. Yes, it's a pain in the *** but it offers some additional protection. I also have commercial umbrella insurance over all of the LLC's, as well as a personal umbrella.

My first place, found out the prior owner was coming to collect back-rent from his old tenants, AFTER signing during closing that all tenants were paid-up.  Had to file a restraining order.  Then found out one tenant decided to move herself to another apartment in the building AND build a wall in said apartment to turn it from a 1-bedroom to a 2-bedroom.  Eviction in progress.  Same tenant left her toilet overflowing for hours without telling anyone.  Leaked from 4th floor all the way down to the basement.  Another tenant got into a fight outside the building and threw another guy through the storefront glass window next door.  Problem solving doesn't begin to describe it!

I'm anticipating on making a cash offer on a small office building in my area, which means that I'll need to submit a proof of funds letter with my offer. The cash will partly come from the sale of another property that I'm closing on in one week. So I'm in a situation where I'd like to get this property into contract ASAP, but can't write my own POF for another week. I know that transactional lending is usually used for a double-close during a wholesaling deal, but I'm wondering if they'll do something similar for this situation. I essentially need a bridge loan or a temporary POF to hold me over for one week. Any ideas?