All Forum Posts by: Joe Pitrolo

Have about 3000 sq. ft of store front space in a heavy traffic area zoned for retail/office.  I've been using CL and Facebook adds and had some serious inquiries, but the space has been vacant since a used furniture store left.  I was going to try to rent spaces for antique, crafts and second hand items, but this hasn't materialized. We also have plenty of parking, but the area of town is a little depressed and one block down from the main drag, but it is close to the hospital and local Fairmont State College.  I've been trying to beautify the space, add a bathroom, flooring and paint.  I would like to split the spaces up unless a strong renter comes in to take the entire space.  In addition, we have plenty of warehouse space in the back for storage.

  I've also considered building a kitchen so I could rent to a restaurant or adding barbershop booths to rent out.  Fortunately, we've added 8 apartments in the building, so I'm not ultra dependent on one tenant, so I can be a bit choosy.  I've also even considered adding my own business such as a coffee shop, but any restaurant requires architect plans and inspections and most likely an ancil system which costs minimum 10 to 15k.

  Finally, I am considering adding wi-fi and front desk and somehow section off or partition spaces, either with drywall or pre fab removable walls for offices.

   Any suggestions would be helpful.   Thanks-

Since 96

I have a maintenance person and I normally use CL for advertising and starting to use FB. 

The university has built several large apartment complexes and do not even have 50 percent occupancy. They are non profit and don't pay property taxes and have access to all student emails to advertise.

I'm surprised no one mentioned , it's time to buy Gold? Curious if RK is suggesting that?

My excuse for not investong in gold so far  is that I think RE cash flow Rentals and the build up of equity is also a safe hedge with more growth potential.

Jeremey. Welcome.  You might do a search of Morgantown West va.  We've had some good threads and are hoping to get an rei group togerher. I think Morgantown is a tough market , low cap rates and competitor rental market. I've had a townhouse vacant for a while and finally have gotten it rented this summer. If you are looking for solid growth and stability with low cap rates it is probably a good bet. If you want higher cap rates and lower entry point , FAIRMONT OR clarksburg is good. Just bought a 2 bed room 1 bath 1200 sq ft in Fairmont for 33 and renting for 850 adding a bedroom in basement and can probably rent for 1000 and resell for 65 to 70.

I was told by equity Trust:

We do offer Solo 401(k) accounts, the 401(k) is a Qualified Plan and you must have a properly structured business where you are the only employee/owner and receive W-2 payroll from the business to make contributions.

I would have to receive a W-2?   Another self directed 401K company told me I didn't need this to have one?   

Also, lets say you buy a rental for 50K and get 1000 a month, does that just go back into a money market account to be used for rental expenses?   I would like to take 40% for expenses and invest the rest in stocks or mutual funds.  Equity Trust and other companies have been vague on this answer and say their fees are higher to invest in stocks.   It seems like I would need to transfer some of my profits out of the self directed accounts into a regular brokerage account.       

 I would appreciate some guidance from someone experienced with these accounts.  Thanks-

I won a bid today on a 3 bed 1 bath Reserve was 30k starting bid 10k which sounds great. Some auctions they disclose that auction.com can automatically bid up to the reserve, but I'm told they can accept lower and some auctions don't have reserves. The house I got 3 months Ago in the same town for 26 was a much better house 4 bed 2 bath better location. I didn't recall a reserve on it. So I bid up to 22,500 today and the increments got lower and they automatically bid up to the reserve.

I would call the HUD office and speak with the case worker, introduce yourself and get familiar with the inspectors , workers. Perhaps they can provide you with some history of the home as far as past inspections so you will be aware of potential problem areas. They can also let you know if your are eligible to request a rent increase which you should probably strongly consider, especially if you improve the property. I'm assuming you want to continue with the HUD renter. If not you might want to plan an exit strategy. I think having a guarantee income on a new property is a plus.

Just bought a sfh vacant home and had to buy a bridge policy American modern about 30 percent more til I can get fixed up and tenant. I deal Hood agency in Fairmont. I would strongly consider a very high deductible and lower coverage until you get occupied. If you want to meet and discuss, I'm in Fairmont often and run the building at locust and Cleveland I've dealt a lot with the city and fire Cheif