All Forum Posts by: Mike Magliette

@Michael Wagner I like this hybrid idea in your blog, but I could also see myself overseeing a retrofit of storage units from existing warehouse space or building a few rows of small outdoor units on an existing commercial property. Over in Taylor someone is triple dipping (laundry, self storage, and self carwash) on the same property.

Also I fully believe in order to grow you have to use leverage, I finished a cash out refi on a duplex before the virus struck hard. I have cash and hopefully solid lending in place to take advantage of what seems to be an impending downturn in the market. I as you, look for value add properties, but here in Scranton it's all about the cashflow as there is very little appreciation year to year on small multifamily properties. So if I find a turnkey property that cashflows (relatively easy with the low interest rates) I'm buying it.

@Chris K.  Yeah I think my CPA meant poor returns if you just buy a turnkey at market value. I think for my first attempt at the self storage game would be to buy a existing facility that is poorly performing, but in a good area. That way I could just focus on the management part, be it from self implemented systems, or from outside providers. Once successful at that I would be more comfortable taking on a retrofitting job or building from the ground up.

Great post! I think all the above responders have answered your questions quite well. I'm interested in adding self storage to my portfolio as well in Lackawanna County. How did you find the one you are buying? Ever consider building from ground up?

My CPA said it would be best to buy in cash or returns aren't great with self storage, not sure how true that is just what I was told. I'd be interested in speaking with you more about your deal if you would be so kind. 

In any case thanks for the post!

Hey Dave,

       I have some thoughts about separating the utilities in my multifamily properties, any advice or opinion you care to share would be greatly appreciated!  

First, I want to add a small mechanical meter (don't want to run electric) to each unit's supply line so I can read the meter monthly and charge my tenants the appropriate amount for the water bill. I understand this could be a complicated process if the water supply is split deep in the bowels of the house. However for the sake of conversation I'm assuming the water lines will be easy to access in the basement. Also there will be ample room for the installation before getting to the hot water heaters.

Next, most of the properties in my area have the heat provided by radiators with 1 system for the whole house. I read we could add TRVs (Thermostatic Radiator Values) to each radiator so the tenants can control the temperature and we could track how much hot water is flowing through the radiator. I just don't know how feasible it would be to pay for a whole house installation of TRVs or the ease of being able to track usage and charge the appropriate amount of the heating bill to my tenants.

The main idea here is to find cost effective ways I can track water and heat usage in-house (without having multiple water/gas meters installed by the utility company) and bill the tenants the proper portion of the monthly utility bills.

Thanks for this post!

Will be my first time attending a meetup with this group, but I look forward it to meeting everyone. Feel free to read my profile if interested in learning where I'm currently situated on my REI journey. I welcome any advice or input thanks!

Interesting read thanks for the post @Carlos Rodrigues.

My guess is the seller knows there is an issue with the tank/soil contamination otherwise it would still be for sale or could just be a stubborn person. In any case you didn't have the desired outcome, but I'm sure you learned a few things. No need to dwell upon it, just keep an eye on the property for any news, and keep grinding to find that next great deal! 

FYI I know for active oil heat systems you can have the tank and pipes tested for leaks. It costs about $495, is only 95% accurate, but you may use the report, if the system is deemed leak free, to buy oil tank insurance. Just throwing that out there in case you ever encounter a property that runs oil heat.

Also thanks for the posted question I learned something new today. 

@James W.

@Denise Evans

I appreciated all the input as well! I was unaware such methods exist to reclaim a foreclosed property in general.

Nice! I enjoy the craft beer, have yet to go to this brewery, and I have been looking for a REI meetup to attend. Sounds like a winner to me I'll be there!

I looked into using a HML to finance my first multifamily deal in NJ which I intend to house hack. What I have come to learn is they will not lend to individuals looking to owner occupy the property like myself. At least as long as you carry the loan with a HML, after you refi into a traditional mortgage with a bank you may live in one of the units if you wish.