All Forum Posts by: Mike Roy

@Amber Roush - I think one of the biggest considerations is whether your buyer wants to pursue the B&B lifestyle.  This is not a passive business, so your buyer would want to be prepared to be an owner and operator. 

One thought I have had is to convert old B&Bs to residential assisted living.  I haven't gone too deep, but I think there could be some opportunity where I'm from in New England.

Sorry for the typo, Bob Warren.  Hope he didn't see that!  :)

@William Wironen - I own 20 units in Bath/Wiscasset and am a licensed agent in Bath.  I am familiar with this property and location.  $1,100-$1,200 might be doable in the current rental market, though I would caution that the half dozen streets running perpendicular to Washington Street by BIW are among the least desirable places in Bath to live.  It was not long ago that units like these rented for $850-$900, and there could be a very good reason they are at $940 today.  I would not assume they are under market.  9% management is also about right in Bath.  I pay 10% and am happy to do so for the level of service I receive.     

@Ryan Murdock is right on.  Heating fuel will probably run $3,000 per year or so unless you separate the systems and pass it on.  I would expect insurance on a building like this to run about $1,000 on a business owners policy with good liability coverage.  Bob Warrant at Midcoast Insurance is THE guy to talk to about this.

@Garret Getch - Bath Housing published a great study in 2014.  http://www.bathhousing.org/wp-...

I need to refresh my memory, but I believe just 5% of BIW employees live in Bath.  Just one of my 20 units is occupied by a BIW employee, and that unit is in Wiscasset.  

From my perspective, this one might be an okay owner-occupied situation if you want to be in the South End of Bath, but I wouldn't touch it as an investment.  

@Bob Langworthy @Dan Weber @Dave Holman @Account Closed

@Bryan Carleton Let us know how the sale turns out.  I don't see Waldoboro pop up here much, but having grown up in Damariscotta, I absolutely love it!  And yes, thank you very much for your service!

After 15 years, I'm finally back in my home state of Maine, and I owe it all to multifamily real estate investing!  A BIG THANK YOU to Brian Mitchell for graciously offering to let me organize the July meet up.  This will be my first since coming home, and I'm looking forward to meeting local, like-minded investors.

The event will be informal and will begin with me telling my story about humble beginnings in rural Maine;  a decade of confusion and misdirection caused by well-intentioned family members, friends and teachers; stumbling into the concepts of financial independence, cash flow and the value of time; and the execution of a plan that enabled us to leave our corporate jobs earlier this year.

Really looking forward to meeting you all there!

@Anthony Wick - Ah, the voice of reason, good for you Anthony!  When I listen to successful rental property investors speak, they almost universally say their success can be attributed to buying for cash flow as their number one priority.

My gut says that you're the Smart Money on the sidelines and that you'll kill it during the next downturn.  

@Andrew S. - If renting a house for $1,000 or house hacking a duplex with an effective rent of $200 were my ONLY options, I would buy the duplex.  However, this comes with a whole bunch of caveats others have mentioned.  Obviously, you want to buy quality assets with limited risk and foreseeable upside.

Given the universe of house hacking options though, a duplex would not be high on my list.