All Forum Posts by: Phil LeNeveu

Going to be hard to answer this without more information - but a general goal post to aim for (I believe Brandon Turner does) is $100-$200 per month after ALL expenses per door. So your example you'd need 12-25 doors

How you get to this number and how much of your own capital is needed varies immensely person to person. Investing with other peoples money, self managing higher yield properties, BRRRR, various strategies can be used to get to that level

Thanks @Harrison Smith I agree with you and the bunkhouse or bungalow idea was kinda what i was thinking in terms of relatively bare bones but still nice finishings for a family rental for 1-4 week periods! I suppose my follow-up is given it wouldnt be full time living arrangements and income is "seasonal" would financing such an endeavor be challenging?  

@Frances Buerkens Thank you! Good point on the Vernal pools. I believe when initially surveyed (not for residential but for the well servicing) a few of the acres (approx 5 or 6 are classified as this type) and could maybe be set aside for conservation purposes and wouldn't/couldn't be build on

On the land itself - there is currently one SFH home (the owner lives in) already and one large Barn / warehouse used for storage of industrial tools etc so some of the land is already zoned

Edit: Location is southern ME - Kennebunkport area

Hi All! 

So I have been a long time reader of the website and all the advice from this community has allowed me to make a handful (4) of  investments so far so thank you for all that!

But wanted to run the real meat of discussion by everyone here to see if I am crazy or if something is possible...I feel there is a deal but not sure if the effort would be worth it for one singluar person and may need more institutional capital etc.   

I currently live in Boston and through a relationship, have access to around 60 acres of land in a beach town in an expensive area of Maine (not on the beach but 1.5 miles from the beach) for a significant discount. The owner bought the acres 40 years ago and has been holding them since and is looking to retire in the coming couple years. Some of the acres are zoned for building (but aren't cleared or flattened) and the others aren't zoned yet but have good road access and have a natural well so wouldn't be too hard to get the rest zoned (would need septics and power but lines are close) as it's in a residential area. (the owner also works in excavation so could flatten and prep the land himself and dig the foundation)

Houses in the area go for $300k-$450k and we have tossed around the idea of zoning the properties on something like 2 acre lots each and building a few modular or cheaper stick-built rental properties and renting them out and having the owner, who lives in the area be my property manager as kind of a retirement gig. Been doing a good amount of research and given the owners connections in the contracting world could probably build the houses for $150k - $225k and given the area and the land would be worth more and could potentially refinance? 

Happy to provide more details / but just wanted some advice and seems like a really good opportunity but is it too much for one / two person undertaking?  

Thanks!!!!

I use them for a property in KC and echo the above. They are okay. Hoping they expand their infrastructure there as I plan to purchase more homes in KC

Welcome to the site - I am from Boston as well and focused OOS. Let me know if you want to connect. Always looking to meet more people in Boston interested in REI

@Debra Grumbach thanks! Yea of course I dont want to lose my shirt and I am trying to be very conservative, but didn't know if typically snowball most of their 1st property cash flow and try to get the 2nd, 3rd etc before some of those big capex items come to fruition

The property has a brand new Water tank, brand new furnace, and roof is about 5 years old - so knock on wood nothing from those happens in the near future - of course unpredictable things can happen and maybe best to keep liquidity 

@Jason G. thanks for the input Jason - i will probably open up a separate account after all. If the property has been more or less fully rehabbed does that change any of your assumptions?

BP - this may be be a dumb question, but it is something I have been debating for a couple weeks now. 

i actually just closed on my first property and have benefited more from this website and the tools, people, and information gained in order to make my first deal a reality. 

By no means was it a home run $50k profit flip, a SFH that cash flows at $550 or anything like that, but it is a SFH that cash flows after all expenses (very conservative expenses) of around $176 per month +/- $25 depending on which assumptions I tweak slightly

That being said - after taking out significant portions of $ and setting them aside for CapEx, Maintenance, Vacancy, and a MISC category (and of course PITI and property management) all of which are running through my model, do you guys actually keep the money aside in a slush fund or separate account or is it for modeling purposes to understand that you still cash flow after all these major and foreseeable future expenses. I am currently in the mode where i want to scale up quickly and having the extra cash flow per month would make it easier and quicker to acquire my next property while still knowing that in XX amount of years i will have to replace a water heater and there will be maintenance come end of the year when tenants turn over. Hypothetically could i use the money from my monthly savings, and cash flow from my property to scale and because it is already modeled in use a CC or cash on hand at the time of the maintenance or CapEx or is this a bad strategy

Thanks