All Forum Posts by: Brian Tietje

Why not ask the appraiser? maybe a change fee?

Listen to your gut, if it doesnt feel right walk away. Always another deal

Ray, 

At the end of the day you need to be able to sleep at night. I am a long time investor. I recently purchased a 3 unit with a similar scenario, including heat and 1 with electric too with two units occupied by elderly fixed income residence. I informed all the tenant's things would stay the same for at least 6 months, give me a list of needed repairs etc. Once the COVID restrictions are eased I will start planning. Honestly, I don't plan on making any changes to their rent, maybe next year add 25$ or something trivial. I will then renovate and bring to market rates as the 3 units vacate.  The first one is scheduled this summer. Once that conversion happens I will be solidly in the black. With some scenarios im good with breaking short term knowing the rent will be paid 100%. My collections in April were 99%  and I am on pace this month to do the same. I take a softer approach with my tenants and my average length of tenancy is over 5+ years reducing turnover maintenance and loss of revenue,  I never advertise. My tenants are my lead source for new tenants as I add units each year.  Millions of ways of being a successful landlord. The great thing is each of us gets to define what success is! 

Depending on the bank they may require that you have held title for six months prior to the refi. A conventional bank such as wells fargo may do 80 ltv at that time, I have a good local bank that does 75% ltv, title in my llc, and very competitive rates. Best to shop around as others have said, look for a bank that prefers commercial landing vs traditional  retail in my opinion is a better long term choice.

Look to a regional Bank. In ny I work with Salisbury bank out of CT, they may cover MA. I am 75% LTV, 4.5% 15 and 20 year terms, no points but scaled prepayment points the first 5 years which for me is it irrelevant as I buy and hold.

Id love to meet up. May 30th does not work due to other commitments. I have now over 20 years investing in Poughkeepsie. been slowly building inch by inch. I have 3 I am working on now. 1 I am super excited about renovating. If any of you come across the super ugly types that is too much for a newbie, let me know. I take on projects that others would knock down.  

Yes, the market in the city is changing. Yes, I see investors overpaying. To renovate these old homes is not cheap if you do it right and the appraisal values still are not catching up with the actual renovation costs and rental revenue. ......... Yet........

Frank I do no utilities included. Others do. I think its,about the property and total appeal and price point. Off campus we charge more than a normal rental, but it's still cheaper than on campus. Especially year round.

IBM has not been a big factor for 20 years, mostly NYC, and the colleges. 

 Me 3! 

Mike you selling the one on the corner you did? I have been building my portfolio for over 20 years now in Poughkeepsie. I believe in the market. It's not for everyone. I take on full rehabs because I like little maintenance  when I'm done.

Brian, you got great deals. Enjoy them and keep them maintained. Decent duplexes in decent ares  are now 150k to 250k. What will impact sales and opps are the new CO laws. All homes need to be updated with a new CO upon sale to get a mortgage  or cash with a permit to bring into compliance. I just bud on a 3 bed 2 bath needing in my estimate  50-75k to bring it to my standard and I was one of 3 offers the first week. The better deals are going to be competitive.