All Forum Posts by: Mark W.

@Dennis Callaghan

That sounds similar to what I first set up, a series LLC. My advice, especially if you are looking at financing in your LLC's name -- don't do it. Local banks don't understand the structure and will just say no. I wound up dissolving the series LLC and just set up a regular NY LLC and refinanced 5 properties into that. That was the limit I was comfortable with and I set up another LLC for my next set of aquisitions.

There's no hard and fast rule for how many properties you put in an LLC but IMO one per property is definite overkill. Keep in mind that each LLC will need it's own bank account and you should endeavor to keep finances separate, i.e. collect rents into the appropriate bank account.

LLCs are a must to mitigate your liability.  They're really not that great for anonymity, especially when financing is involved.  I think there are other structures that might help with that (land trust?)

@AJ Nestler You have an incredible resource at your disposal -- a family member who has scaled in the market you're interested in.  Your dad is going to have a lot of wisdom in areas to invest in, values, rents, tenant and property management.  He might even be a source of private lending at a reduced interest rate. 

@Parker Massengill @John Tarricone

Good point Parker, I forgot about wholesalers.  In theory I agree that may be a different avenue, but nothing has panned out for me there.  I've given my contact info to many wholesalers but the few deals that have come my way are in war zones or generally sketchy areas.

John, I just saw FFREIA is having a general meeting next week and the main topic is going to be a roundtable discussion of the current Rochester market.  It'll be virtual and the first 2 meetings are free.  You may find the topic to be worthwhile.

@John Tarricone I'm in your market and I agree, you can find deals on the MLS. Killer deals, even. Those are gonna be few and far between though. The inherent disadvantage to you with the MLS is that if you're seeing it so is everyone else. And the market for multis in some areas of Rochester is hot - super hot.

I would keep an eye on the MLS and be prepared to pounce. Have a solid, responsive agent in your corner. Turnkey stuff and high demand areas are gonna be tough, because there will be multiple offers.

I'm always looking at the MLS but last summer I also started doing direct mail and texting owners. I got a decent amount of leads and actually managed to land a home-run deal which I just recently closed. Even still, I had to deal with a little bit of competition. But nowheres near the amount I would have if the properties were on the MLS.

It's not an either/or though - do everything you can to land your next deal. MLS, direct mail, texting, cold calling, word of mouth, etc. They all can bear fruit.

@John Tarricone  Well here's my opinion.  I have a duplex where the previous owner painted over the gorgeous millwork in the downstairs unit but left it original upstairs.  This is not your standard colonial moulding.  And let me tell you, prospective tenants go "wow" when they tour the upstairs unit.  Not so much downstairs.

If the trim is in good shape (i.e. not beat up), I would leave it.  They don't make 'em like that anymore.  Painted wood is a single tone.  Stained wood has warmth, variation, and pattern.

Everybody is doing the monochrome thing.  Just IMO - I'm not a fan.  It's getting played out because so many rentals look the same.  I think it's nearing its shelf life.  I completely redid a unit last year in warm tones and I had cars parked down the street during the open showing.  And this was in Maplewood.  You don't need grey/white to attract tenants.  Being in a historic district will probably be the draw, and prospective tenants might be looking for something with character instead of a cookie-cutter rental unit.

Choose paint colors that work with the trim, floors, cabinetry, etc.  And you don't have to use a single paint color.  I started using different colors in bathrooms, kitchens, bedrooms, hallways, etc.  I want to attract a tenant that says "I love it!" rather than "yeah, it'll do."

That I am not sure of. They were doing 80% LTV cashouts last summer, but not sure if they've changed terms recently or not.

CNB.  None friendlier as far as a bank goes.  PM me if you need a contact.

Before I switched to Buildium, I used RentPrep.  They were more than $25 as I recall.  But basically you charge the $20 and eat the rest.  Cost of doing business.

@Jeremy VanDelinder Very interesting angle.  It looks like AOB is legal in New York.  What would a deal look like?  I'm not sure of how insurance payouts work.  He could take the money and run, so to speak, but then he is left with a building the city would force him to knock down, to the tune of 20-30k.  Or he could have the property rehabbed, keep it, or sell it.  To me.  But it sounds like he doesn't want any of that hassle.  My original thought is I would offer him closing costs and take it off his hands.  Could I offer that and have him assign benefits to me?

@Will Barnard I would be ok with some negative equity, since this would be a buy and hold, but not much.  At the end of the day, if I had a fully rehabbed duplex and had to sink 10-15k of my own cash into it, I could live with it.  Any more than that and I'd be better off finding other deals.

I've got a bead on a duplex in an area I like that has significant fire damage.  Back unit is a full gut due to extensive fire damage (kitchen fire); front unit requires minor rehab.  There is significant damage in the attic which would require replacement of the roof and about a third of the rafters.

Seller is willing to sell as-is, however, I'm not sure I can make this work. ARV is ~130k, rough estimate of repairs is greater than that. I don't mind having some of my own cash in this, but we're probably looking at 140-160k worth of rehab.

I would hold this, not flip it.  Any way I can make this work?  Have seller sign over insurance settlement?  Seller is out of town and seems motivated to be done with it.