All Forum Posts by: Parker Dresser

I started to look at vacation rentals but it didn't seem like the return is there.  I think it is because many people buy waterfront for personal use and not based on an investment with a calculated return.  This drives the price up past what I could justify paying for a rental even considering the higher rents during peak time.

A similar issue was described in the Bigger Pockets books Rental Property Investing.  There were issues with a shared driveway and it reduced the value of the property.

I have a property in Bangor Maine under contract now with no issue.  As always the numbers need to be right including your personal income.  Find a local bank and talk to the commercial lending department.  Avoid big banks and credit unions.

I have two rooming houses in Maine.  They have worked out well for me overall but it is a bit more of a challenge.  Make sure you have a good manager.  My city is happy with us because we are slowly improving the property and provide housing for people that otherwise may be on the street.  We have yet to tap into a higher end market even with the improving downtown.  I think we need to update our bathrooms.  Claw foot tub is still there!

I just bought a couple in Bangor, Maine for just over $200,000.  They were not in the best neighborhood but they still pulled in $900 per unit.

I am in Bangor and I agree with about appreciation in most of Maine.  I have slowly been fixing up my properties and I do not count on any appreciation.  I have not reviewed statistics but I have reviewed some specific cases and appreciation is about par with inflation.  I count on the profit in the form of principle payment and on my better properties positive cash flow.  I think a slower market has its own advantages.  There are older investors who are willing to retire.  Also you can buy large older properties for less money.

Check your zoning for maximum number of people allowed in one unit.

In my city it is licensed as an inn.  They understand that most tenants don't rent by the night.  It must have sprinklers, fire extinguishers, and exit signs etc.  I have to have my inn license redone for each property every 12 months.

Congrats on heading in the real estate direction!  I am a buy and hold investor in Bangor, Maine.  I agree that education is first including talking to people.  Find out your strengths.  If you are handy then the rehabs are good, but I like the idea of buying a 4 unit building and living in it as a good first purchase. 

Has anyone found that their bank requires life insurance?  I have no children so I didn't have any before.  I am looking at a new purchase and my bank wants me to increase the amount.  They are the sole benefitiary.