All Forum Posts by: Nate Burnett

What are your rents going to be? Think about what the extra 0.125% will cost you in the long run, $600 is a moot point to get a smaller interest rate. 

I only have experience with assisted living as my grandmother moved into one and it was the ideal setup. I would say depending on the size you may have to use two rooms into one unit. 

The idea with assisted living is the freedom of living in an apartment, so confining them to a single hotel room might not be what most tenants are looking for. 

My partner's grandparents are actually looking at them now as well to move into and commented how the one's they'd pass on are the ones with too small of an apartment. Most offer a living room, bathroom, private bedroom and at least a small kitchenette. 

You just have to take a look at your market, take a tour of other local assisted living facilities, you don't necessarily have to say you're doing market research.

@Jim Ehlinger    congrats on the purchase. Can I ask where in NH you are buying? We're closing on our first duplex in Dover in a few weeks. 

@Matt Lefebvre, it's a bit more than a $2000 gap. If you estimate the $6000 in roofing it's about an $8000 gap. While we may just go for it and trudge forward, I'm sure whatever we do to the place is an improvement. The owners who have the property did absolutely no maintenance. We couldn't find a service tag on the 52 year old boiler from anywhere beyond converting it to natural gas 20 years ago. Granted they've only owned it for the last 8 years. 

Thanks @Evan Mullen I've got a few rough estimates, but I'm also thinking it's an excuse for me to buy a few new tools to at-least reroof the porches as they are the immediate issue.  I think regardless how this turns up, Dover prices have nowhere to go but up as people are rushing to live on the Seacoast. 

And we're down to the ugly part at this point, we had the inspection and it was everything we were expecting, boiler shot, one water heater shot, roof needs some repairs...

Conflicted at this point, it was listed at $215,900, we got them down to $208,000 w/ $5k in closing costs. After the inspection we asked for $5,000 additional, replacement of the failing roofs, and to wire cap some dangling dead end, live wires.  We'd foot the bill for removal of some dangerous trees, replacement of the boiler and a water heater and some other items.

Granted with my connections I can get a boiler for around $1700, and installed for not much more, which is huge savings plus the rebates locally for them. I don't really know what way to go on this. They countered to $3,000 additional in costs,  no other work. 

Our market is moving pretty fast and furious right now in New Hampshire, especially the seacoast and Dover area. I have some really good feelings that the prices should go up and stay pretty decent over the next few years.

If we go through with this, does anyone on the Seacoast have a good roofer that does quality work? 

@Saad A. I'm a little late to this one, not sure if you made your decision yet but the term you're looking for is Luxury Vinyl Plank. We're working on final dimensions of a property we are closing on and will be doing an order of Allure, if you are spending more than $1500 you can take it to the Pro desk (open a free account online) and they will do a "bid process" to basically get you a cheaper price. 

@Paul McCormick Jr I've been looking at duplexes for about 3 months, our market is moving pretty quick and we kept passing one over. The current rents totaled $1950/month, the yard was decent sized, but it was next to a railroad. I spent a week researching the line, we were there when it went by during the first showing and I may have spent a couple nights camped out in my car to hear additional noise from it, but all in all it is a really quite area. I felt people were passing it up because it was listed since August, It started over priced and their latest reduction was a more realistic price. 

I used the BiggerPockets calculator to analyze the rental property and viewed it as if we would be paying the same rent, as eventually our unit will be rented out. All in all we would have cash flow instantly from this property if it was fully rented out, that was my number one criteria. The potential in the building is also there. The last owners bought it during the crash and it's been cash flowing since and they have done zero maintenance or improvements. Once of the units still has the original carpet from the last remodel in the 70s/80s (This ugly red "shaggy" carpet). Ripping out carpet, painting and new basic bathrooms/kitchens will increase the rental numbers and could be paid off within 3 years of the unit being rented out. I also am lucky in that my father-in-law works for a plumbing supply company (they supply to contractors/plumbers only) and we can get HVAC/plumbing/bathroom remodel supplies at their wholesale price so we will save a lot there compared to big box suppliers. 

And we have an accepted counter-offer... Once we get financing sorted, hope to start putting away for the next one. 

Thanks @Christopher Richardson, we actually know the tenant through someone else that knows her, and had a breif chat and the way she kept her unit its spotless. Part of our offer states the owner has 5 days to turn over rental records, documentation and a copy of the lease once/if the offer is accepted and we can either renegotiate if the lease isn't to our liking or just walk away if it's too much of a hassle. 

Thanks guys, clock is still ticking, hoping this is the one. 

@Christopher Richardson it's been hard to grab one in Dover, we'd have a showing lined up and it would go under contract... Or we ran into one just outside Dover in Rollinsford that is a total bulldoze and rebuild.