All Forum Posts by: Matt Dabek

@Richard Lovering did you just upgrade the systems (plumbing/electrical) prior to renting out or you replaced the systems?

@Steve Morris I don’t thing it is a thing here in CT as I have never even heard of it...am I wrong? (I’d like to hear from New England ppl). Should I - just in case - stay away from those pre 1927?

@Jaysen Medhurst ... and yes, just to get this straight. I ask for 680-700 and most of the showing requests are below that (or waaay below that). But out of those that come there’s always somebody with what I’m looking for. Did it 4 times for my two duplexes and it worked.

@Jaysen Medhurst so, yeah, I ask for 680-700 CS and I do finish my properties with granite, new kitchen cabinets and brand new tiled bathrooms, tiled kitchen floors etc. On my last property I had about 30 showing requests and it got rented within 3 hrs (2units). That’s why I’m asking about older properties because I just don’t know if my approach would work. I figured that if I want to keep those properties for a long run I mind as well put some money into it at the beginning so I don’t have to worry about it later. So far that works just fine.

I mean ... I walk in to the old house like this and the floors are uneven, they have old electric and plumbing, old windows, etc

My question is - when you buy those do you just fix cosmetics (paint, flooring) and fix whatever is broken, or you gut the place completely?

 I learned (hard way) that if I leave out only ONE thing that could be fixed it will come back and hunt me within couple of days after tenants move in. For example I left old toilet on one of the rentals which was working fine and 2 days after tenants moved in it started leaking. This happened to me few times already.

Do you get "good quality" renters? I'm asking for 700 credit score - is it any possible in houses this old?

Good day everyone.

I own 2 duplexes in central CT. Its pretty hard to find gems like that priced right to BRRR. I did it 2 times already and I'm pretty happy with outcome. I've been looking for another one for a while and there's not much coming out. So I started looking into different types of multifamily. I found out that there's quite few multis from 1900-1920 on the market. Are those any good investments? I walked few of those and I was little scared to touch it looking at the amount of work that needs to be put into those to bring them to "rentable shape". I finish my houses pretty nice with granite counters, new cabinets and brand new bathrooms. Usually one door cost me around 20-25K to redo.

I'd like to hear from investors with these kind of properties in their portfolios. 

Are they easy to rent?

Are they real pain to renovate?

How is much could it cost to renovate those?

Is there many problems with permits/updates?

Do you rip out all plumbing and electrical or just patch and fix?

Can you get more bang for a buck with those?

Any other thoughts?

@Seth Williams

Thank you. I'll ask tomorrow.

@Simon Chan

Honestly I didn't think if loan is for 10 years amortization could be longer(?)

How does it work?

So I went to my bank yesterday and they said that they can qualify me for apartment building loan.

My problem is they said that the longest term of such loan would be 10 years/20% down. Now when run my numbers with that on any property 1M+ the monthly NOI covers only about 50% of my mortgage payment. I would have to stretch my loan to 20-30 years in order to have some monthly cash flow.

Is 10 years really a standard length of commercial loan?

Are there properties that would generate income that would actually covered mortgage payment with 10 year loan?

What am I missing here?