All Forum Posts by: Patrick McKinney

Hi All - 

I have a problem tenant in Swampscott Massachusetts. She is currently halfway through a 1-year lease, and after a relatively quiet 1.5 years this tenant has become a problem, being a nuisance to both the neighbors and the other tenants that I have in my multi-family building. Both my tenant and her daughter have started to intimidate the neighbors and the tenants in my building, making them feel uncomfortable and unsafe. They make loud noises, are up very late into the night, and sometimes harass those neighbors/tenants. The property has a shared driveway and they have been accused of "messing" with the other tenants and neighbors cars. There has also been suspected drug dealing activity out of the unit. I manage remotely so some of this I hear second-hand, but I've now installed cameras to increase my chances of catching this activity on video. The cops have been called 4-5 times in the last 6 weeks, but unfortunately nothing has come out of that except for a few reports of "disturbances".

I know MA very tenant-friendly so it seems my only option is to ride out the existing lease and be sure to over communicate my non-renewal of the lease. Due to the frequency of these issues I'm worried this is going to scare my other tenants away, and continue to upset my neighbors, so I would strongly prefer to take action sooner. 

Does anyone have any suggestions or experience with something similar? I know I could offer cash for keys, but I'm worried when I offer that, they will realize how little leverage I have until the lease expires. 

Thanks,

Pat 

Hi - We at Kinvarra Capital are looking for a real-estate focused accountant to help us manage the books on our projects. We are growing rapidly, and looking for someone with expertise that can help us as we grow. If you have any recommendations or you yourself are an accountant with significant real-estate experience please reach out! 

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $1,065,000
Cash invested: $40,000
Sale price: $1,800,000

Multi-family that was acquired renovated and sold as two separate condo units. All in 22% return.

What made you interested in investing in this type of deal?

I had cash, and wanted to put it into something less traditional than stock-market holdings.

How did you find this deal and how did you negotiate it?

This was a friend of mine that is a developer. As we talked more he told me about the opportunity and potential upside which interested me.

How did you finance this deal?

I put up some of the capital to help close and pay for construction loans needed to flip the multi into condos.

How did you add value to the deal?

Cash

What was the outcome?

Success, 1.22x return on investment.

Lessons learned? Challenges?

I wish I got more involved with the process. I was a passive investor so I could have learned more being closer to the project.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Kinvarra capital - they are growing.

I'm currently in a high-cost market, and after I use my FHA loan it seems that my options will be limited at least for the short term. There are a lot of other markets that are much easier to get into from a cost perspective but I'm just not sure where to start. Any advice for how/where to get started?

I've been very interested into purchasing my first multi in the Boston / greater boston area (Eastie or Dorchester being my greatest interest). 

I've been watching the market via MLS for months and based off last 3 months it seems a TON has gone to market and has been sitting. Would you consider this a good time for the Boston market given I'm a first time buyer?