All Forum Posts by: Nick Romano

@Aaron K. The issue is that my rent is actually a bit above market rent.  We're renting it fully furnished so we're getting a bit more...but this would definitely be the max

@Jack Bobeck my investment goals are $10,000/month in passive income.  Currently I own (mortgaged) another 4-plex, and a (mortgaged) single family home.  With the proceeds from the sale of the condo ........I'm currently looking at a property with purchase price $365k and rents @ $3800/month (total). With the proceeds from the sale of the condo I could almost buy this multi in cash.

@Marian Smith with the profits I'd buy a cash flowing multifamily.  It wouldn't be in the city, but it would be cash flowing much more than the condo!  

I'm looking at a property now with purchase price $365k and rents @ $3800/month (total).   With the proceeds from the sale of the condo I could almost buy this multi in cash.

@Jordan Decuir wouldn't a cash-out refi mean giving up the low rate in place?

Hola BP Community-

I've been toying with the idea of selling my condo in Boston for a while now but I can't seem to come to a solution.  I bought the condo in 2013 for $525k and it's now worth about $625k.  Its in one of the hottest neighborhoods and the construction is all over the place!  Boston is still booming but of course we're heading for a slow down very soon (I think).  The property will certainly appreciate faster than almost all other areas I'd invest in over the long term.

I have a 15 year mortgage on the property and I'm currently in year 4-5, so a good amount of the interest has been paid off and most of the payments are now going toward principle creating giood equity.  

-My mortgage payment is $2900/month with a condo fee of $515/month

-The unit is currently rented for $3200/month

-Current mortgage rate is 2.625% :-) 

-Outstanding balance on the loan is $295k

-Should I re-finance into a longer term loan?  It would help the cash flow, but significantly decrease the amount that goes to principle!

-Should I pay off the loan over the next few years?

-Should I sell the property and throw the money into a cash flowing deal?  Only issue is I won't see this type of appreciation over the long term anywhere else. 

-Should I keep it as is, and pay it off over the next 10 years with about $200-$300 coming out of my pocket each month?

-Any other options?

I really appreciate any feedback on this case!  I've been thinking about this one for quite a while and just can't seem to come to a solution!

Thanks so much!!

-Nick

Hey Guys-  Trying to find a reliable plow contact for a new 4-plex I recently bought in Plymouth, MA.  I have been in contact with one great option, but I think he's nervous about the insurance.  He only has a few accounts but does great work....He has general insurance (in case he damages anything) but doesn't have "slip & fall" insurance and is worried if someone slips and falls he'll be liable.

I have a great insurance plan on the property for myself, but does he need to be worried someone slipping and falling on a property he plowed?   

Thanks!

@Charlie MacPherson awesome hearing from you!  I owe you a call and will reach out today!!

The rent increases I'm predicting are accurate.   

Sorry, I forgot to give the specs:  These are all 3 BED 1 BATH units.

-Definitely going to take another look at the snow situation. 

Thanks!

@Debra Grumbach Thanks for the initial response!  

-The $9k in taxes is accurate.

-Thanks for the heads up, I'll raise this number for snow and keep this in mind.

-Reducing the CapEx to 10% would result in an additional $224/month in cash flow.

-The leases are due to expire in January.  But I will make certain that we can raise the rents and ask the question "why aren't they".

-Everything in my calculation was on the higher side...besides snow :-).  Including the purchase price.  I'm offering $600k so the numbers will be slightly different.

Thanks Debra much appreciated the feedback!

Hey Guys!  I Love these forums so figured I'd throw a unique calculation I'm working on for those of you who like the numbers:

The property is a 4 family in a hot suburb of Boston in the great state of Massachusetts.

By the numbers:

Purchase price: $650,000 (negotiating for less)

Down Payment: 20%: $130,000

Interest rate: 4.5%

Debt Service: $2,635

 Annual Rent:  $67,200  ($1400/unit expected to rise to $1600-$1700 in next 2 years)

 Water: $2200 (for all 4 units/year)

Taxes: $9,000 (seems high but that's what was in pro forma)

Insurance: $4,500

Other Annual Expenses:

Electric: $360 (common only)

Gas: $300 (common only)

Vacancy Expense: $2,016 (3%) (May be high estimate....)

Lawn: $360

Snow: $600

Pest: $600

Trash: $480

CapEx & Maintenance: $9,408 (14% of rent) (May be high estimate....)

I'll self manage to start until the rents get to around $1600/ea then consider property manager.

Cash flow is about $500/month (before raising the rents to market --$76,800 annually) 

New roof, driveway, electrical throughout, and one unit complete renovated (about $70,000 of upgrades) recently put into the house.  

So as you can see this property is just squeaking by on the 1% rule and 50% rule. But because its in a hot area does that give it special treatment? Also, does it make sense having CapEx at 14% of rent roll on a 4 family with high rents...maybe its too high and that will bring much better cash flow? I did some calculations of all CapEx divided by the life expectancy and price of repair which came out to a monthly total CapEx of about $600

That's all I have for now!  

Of course, you thoughts are so appreciated and can;t wait to hear what the BP community has to say!!!

Just an update on this- after 4-5 months the restraining order is still in affect. They have been to court one time and the judge still is holding the order. Today, both parties are attending court because the lawyer representing the party who issued the restraining order is dropping him. I assume he's not paying and unresponsive. Still hopeful we'll close it soon. Any suggestions? Should I start suing the seller or just wait it out? I have a signed P&S and the bank has been extending my mortgage for me throughout the process. Thoughts?