All Forum Posts by: Martin Goodenberger

Going natural gas is a no brainer. Do it. The question is 1 system vs 4. You can get away with 1, but you'll likely save in the long term with 4 separate units and pushing the costs to the tenants. I would only consider 1 system if you don't have the cash for the increased cost and you have higher end tenants that aren't going to abuse it. For the individual systems, these are on-demand, right? Hope you're not installing hot water tanks for everyone. 

I would also consider if you have any common space heating registers - hopefully all common space heating will be tied into one of the 4 units. You may consider having that 1 system paid by you, so in any case of no tenancy or payment issues by the tenant, your building doesn't have freezing common areas. Alternatively, you're probably expected to disclose/rebate the tenant for paying for common area heating.

Another side benefit is in the case of a break down, especially during the winter, your entire building isn't going without heat.

Glenna Irvine: Bought 3 multi families with her and she's been fantastic; DM me if you want email/phone

Will the lender work with an LLC? I'm interested in learning more.

I have a couple plumber leads, but still need roof and electrician.  I'm not interested in Property Management.

Hi, I'm closing on a 4 unit in Biddeford that needs some work.  Any referrals would be greatly appreciated:

• First off, the roof needs replacing, with some facia repairs and improved venting.
• I want to add a laundry room and need a plumber and electrician.
• If anyone has a reliable handyman for general maintenance in the area, that would be great too.

Thanks,
Martin

There seems to be a lot of houses in Gardner that would cash flow well, but I'm not sure what's there.  It's about an hour from where I live. Any thoughts on that area?  Doesn't look like the commuter rail goes out that far.

Thanks Gino - great posts!

@Gino Barbaro By 7 year terms, does that mean the rate can adjust every 7 years?  I'm new to the commercial financing bit and just got familiar with the 5/5 loan yesterday.

I'm working through this process myself and will be setting up an LLC where I'm the manager and there are agreements in place to cover the other investors. In your case, you may just want to have them as members of the LLC. Who is going to manage the properties and generate tax statements?

I bought a place that was all section 8.  3rd floor tenants moved out fairly quickly.  First floor tenant was great and she paid the majority of her rent - always on time.  Low maintenance & good tenant.  Second floor was a train wreck.  Their portion of the rent was less than $50 and it was pulling teeth to get them to pay.  Filthy, dirty people and they left it a disaster zone of filth and junk in their apt, a common storage area (that the previous owner "rented" to them, which they also stopped paying for) and the basement.  Fortunately, we eventually got them out as the placed needed significant reno.

I haven't rented to section 8 again, but I'm not totally against it.  If you're going for the higher end of rents, they may not qualify.  Raising rents down the road could also be a challenge.