All Forum Posts by: Michael Marquis

Yeah, we'll have to agree to disagree on this point. I think Dr. Joe Asamoah, featured on countless Biggerpockets podcasts is a testament to someone turning mostly single-family/duplexes/tris into Section 8 Housing. He started out as a small-time investor and has grown a portfolio of mostly residential properties into an affordable housing empire. 

It is also something I am doing with my current single family and I would definitely consider myself a small-time investor. 

But I will certainly join NARPM for additional training. 

Thank you, Julio. I appreciate the words of encouragement. 

Hello Everyone, 

I have a quick question about how to set up a company structure when dealing with managing properties in multiple states. 

I have a property management company established in Maine (where 90% of my rental portfolio will be managed). But I do have the opportunity to manage other properties located in Massachusetts and in New York. 

Do I need to establish a separate entity (LLC) in each state that I conduct property management services?

Or can I have the management under the umbrella of where my company was established in Maine? 

Not sure if anyone has managed properties in multiple states and the type of business structure. 

Thank you so much, 

Mike Marquis

Hi Trevor, 
I hope all is well. I would highly recommend taking a look at the book, "The Landlord Entrepreneur" by Bryan Chavis. It's an incredible read and literally breaks down the step-by-step process of starting a PM company. If you want the blueprint, definitely check it out. 

All the best, 

Mike Marquis

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $525,000
Cash invested: $25,000

We purchased this single-family for the sole purpose of living in the unit for one year (conventional loan requirement) and then rent the property while we build equity/cash flow. Since I'm a licensed real estate agent in Massachusetts, I was able to broker the deal on the buyer's side and save close to $10,000 in RE commissions. Here's the description of the property.

What made you interested in investing in this type of deal?

Here's the breakdown of why it made so much sense for us to own versus rent:
Monthly Rental Expenses:
◼ Single-family Rent Expense: $3,700
◼ Electric $175
◼ Oil Heat $200
◼ Cable $100
Total Monthly Expense
Monthly Home Expenses: $4,175
◼ Principal & Interest: $2,950.29
◼ Mortgage Insurance: $112.22
◼ Taxes & Home Insurance: $512.84
◼ Electric Bill: $75
◼ Cable: $100
◼ Gas Bill: $35
◼ Water & Sewer $50
Total Monthly Expenses: $3,835.35

How did you find this deal and how did you negotiate it?

We found this deal on the MLS and since I am a licensed real estate agent, I received $10,000 in commissions to broker the deal. I am also a licensed loan officer and through my employer, I was able to secure a 1 point discount off the 30-year loan.

How did you finance this deal?

30-year conventional mortgage at 5.85%.

How did you add value to the deal?

We immediately repaved the driveway - turning a two-car parking into a six-car parking.
We also fenced in the entire yard.
We then replaced the water heater.

What was the outcome?

We are about to rent our single-family house on January 1st, 2024 for $3850-$3900 allowing us to cash flow approximately $300 per month.

Lessons learned? Challenges?

There are deals still out there. As long as the numbers work and you're willing to house-hack in order to take advantage of low-down payments, you can start building an investment portfolio.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented myself as the buyer's agent. I am also a property manager.

Hello BiggerPockets Community, 

My name is Michael Marquis and I'm about four weeks away from moving to South Portland, Maine to start a Property Management company specializing in managing affordable residential multifamily, subsidized, and tax credit properties. I truly feel that PMs could be at the epicenter of our national housing shortage. My goal is simple: to help educate the small-time real estate investor on the countless benefits of building a diverse affordable housing portfolio. 

I'm currently at the business planning/establishing an LLC/obtaining insurance quotes phase - the true startup phase of launching a Property Management Business.

Wish me luck and I truly look forward to learning about Affordable Housing and the many challenges investors face with their rental portfolio. 

All the best and talk soon, 

Mike Marquis