Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Michael Lyons

Michael Lyons has started 6 posts and replied 19 times.

Quick update and a question.

We submitted a strong offer for a 2 unit property in Hagerstown a few weeks ago. The offer was rejected which I did not expect (offered 120K on a $130K asking price and the property was on the market for 3 months).  Looking back, I think it was a good thing.  The property is a foreclosure so it is empty and vacancy and market rents are only a guess at this point.  I have been watching some rental listings in Hagerstown and I am noticing that they are sitting on the market for a long time.  There is a very similar apartment for rent just a few blocks away in a nice neighborhood. The apartment is fairly average but the rent is reasonably priced ($900). It has been for rent since September and continues to sit empty.   That scares me a lot.  

Does anyone have any insight on the current rental market in Hagerstown? I have been looking at Frederick properties more and more. The listings on the MLS seem way overpriced to me but I have found a few properties that have been listed for 90+ days that have been reduced every few weeks and those owners may be willing to negotiate if they are serious sellers. The rent yields on these properties make zero sense based on currently listed prices so unless sellers are willing to take 40% less than their original asking prices, I will continue to hold off on making my first purchase. I don't plan to buy off the MLS every time but until I build a network of contacts my options are limited.

Thanks in advance for any comments or advice!

@Russell Brazil Thank you!

@Andrew Michael Thanks for the reply.  Glad to hear you are finding tenants easily.  There is a lot I like about Hagerstown and it is encouraging to hear that.

Hi,

I have been looking at a few properties in Hagerstown and wanted to introduce myself. I have some experience landlording and I hope to meet other investors in the area and share my experiences as I continue to learn more.  

Right now I am looking for a 3/2 rental or 3/1.5 house, as well as a duplex, if the numbers are right.  Please send me a colleague request or PM if you are interested in talking.  I am also interested in hearing from wholesalers with properties to sell.  My goal is to own a number of cash flowing properties and expand into multifamily units down the road.  We will self manage at first but I am building a PM fee into all my deal analysis in case we go that route.

Does anyone have any insight into the current rental market in Hagerstown?  How long are rehabbed single family homes sitting on the rental market?  I don't plan to invest downtown. Thanks in advance!

Yes, thanks Alex the link didn't come through when I posted. That's it. 

Multifamily owners in Boston hit hard by new tax bills (Link to Boston Globe Article)

I have two main questions I am interested in.  1) Are other hotter markets seeing this type of increase?  2) Are any multifamily owners in smaller markets seeing tax increases that are larger than average? Are local municipalities trying to "get their share" in areas where appreciation has typically been lower than areas like Boston?  If so, have owners been successful in lowering tax increases on appeal?

My two cents is that it is somewhat ironic that the hardworking middle class voters who elected these government officials are indirectly being taxed because ultimately some of the added tax burden will be placed on their shoulders in the form of higher rents to cover higher tax bills.

Also, are there any investors out there that feel like these increased taxes will help break the current market cycle?  Is this the straw that breaks the camel's back, so to say?

Thanks!

Thank you for the  comments Joshua.  Much appreciated.

I imagine many beginner investors on here are looking to buy their first single family home in the $40K-$65K range.  The idea being to start small and learn and grow from there.  I have experience buying and selling one single family rental, after holding it for 5 years. I also have been fortunate enough to save some money during this time and I can now afford to buy a single family home in this price range with an all cash offer.  

My brother and I plan to hold it long term and likely do a cash out refinance in order to repeat the process.  The location we are looking in is a small city in Western PA with slow growth potential.  This location is on the upward trajectory, albeit slowly. There are some good things happening but the city is not experiencing any dynamic growth.  As an example, a 3BR/1Bath house in very average condition can be purchased for $43,000.

I am torn between buying 1-2 single family rentals in this price range, doing some cosmetic rehabbing (hopefully) or buying 1 larger 2-4 unit property and rehabbing and renting that.   Single family homes in this area are renting for $650-$950 monthly, depending on size, and duplexes are renting for around $450/$450 or $650/450 if one side is larger.  

Does anyone have any thoughts on which type of property we should be pursuing? I would also be interested to hear people's thoughts on buying houses in this price range to hold long term.  I live in a larger city on the East Coast and single family homes are selling for many times more than this location so buying something local with cash is not an option.

Thank you in advance for your comments. If anyone has any experience investing in Western PA please feel free to reach out.

Post: MHP Appraisal for Bank Loan

Michael LyonsPosted
  • Washington, DC
  • Posts 19
  • Votes 3

Mark,

All of the lots rent for $140 monthly.  The one lot with a park owned home rents for $325 monthly.  

Post: MHP Appraisal for Bank Loan

Michael LyonsPosted
  • Washington, DC
  • Posts 19
  • Votes 3

The purchase price is $315,000.  The park is about 40 years old. The one park owned home is an older model home in okay shape and rents for $325 monthly.  The other lots are tenant owned homes.  The property is rural.  

Post: MHP Appraisal for Bank Loan

Michael LyonsPosted
  • Washington, DC
  • Posts 19
  • Votes 3

Jon,

The park is 33 pads, of which 28 are currently rented.  The lots rent for $140 each (utilities sub-metered and paid separately)   However, there are a few issues with the park that were not represented in the listing that may cause us to cancel the sales contract.  

The owners had a tough year in 2013 and their income on the Schedule E Tax Return is significantly less than we expected. They had some vacancies, some of which have been filled, and some other issues with back rent.   In addition, one lot is "rented" by a family member and this person does not pay rent.   The sellers are unable to show current rent deposits because they only have a checking account that they also use for personal expenses and some rents are taken as cash.  Essentially, they are unable to show their financials and therefore we are doubtful that we can get a loan. The bank we wanted to use is not interested in loaning to us due to the lack of financial information available and some other banks we have talked to are also not interested. I do feel the park is a good opportunity but not at the price we initially agreed upon before we knew more about it. 

We are going to continue to look for a park and the information about the appraisal process is still much appreciated.