All Forum Posts by: Joe Schmoe

Micahel (or is it Michael)?,

Kudos for beginning your path to real estate investing. What are your goals though? And have you been to/driven around/talked to the locals in Holyoke/Springfield yet? If not, that would be a good first step

James

For a 3 unit, you should be able to manage this yourself with the help of a local guy. Or even one of your tenants if they are handy. PM companies will always charge/pass on the cost of licensed work from Plumbers/electricians/capital improvement/apartment turnover stuff.

If the property is stable, you could find somebody local for 5-7% and include regular maintenance work, court shows for delinquencies, finding new tenants, collections, leases, etc.

Start with Craigslist.

@Aaron Mazzrillo,

Since you bring up my parents, my parents also taught me to not say anything when I have nothing useful to say. I'm sure yours taught you the same. Perhaps you cant recall anymore.

Take care.

@Steve Bracero and @Mike Hurney,

Thanks for the responses. I'm getting appointments with some GCs, but was looking for some rule of thumb numbers, since this is my first. Will let you know what I find

Hello friends,

I'm preparing for a gut rehab a triple decker to convert to condos in the Boston area. I will need to hire an architect and a GC to convert to three middle to high end condos.  I'm looking for how to factor in for labor and materials/sft for the rehab. The structure is sound, but needs reconfiguring the layout, new roof, siding, and maybe adding a bathroom on each floor and finishing the basement.

Thanks!!

William Collins,

Congratulations! Are you rehabbing yourself of you have GC? I'm preparing an offer for a triple decker and am trying to figure out how to factor in for the GC for labor.

Thanks!!

Joel,

I looked at various Hartford properties and the RE taxes threw me off. So Im staying out for now.

WRT what you can do, I suggest the following:

1. If you are going to contest the valuation, I would get the appraisal report from the bank(assuming you financed this) and write to the city yourself making a case using comps, etc. I wouldnt spend money on lawyers given this is a long shot anyways

2. I have heard others in Hartford convert the units to condos. You will need a lawyer for this. Condos are at a different mill rate I think. cumbersome but less money to pay in taxes.

Good luck

Hello,

I heard recently from an attorney that multi-family buildings (more than 4 units per) in Hartford are taxed at almost twice the tax rate for single family or condo units? Is there a tax advantage to converting units to condos?

Would love to hear from experienced buy and hold experts in the Hartford area!

Hi Rob,

Thanks for the response.  I have been doing as per your suggestion. Looking for comparable properties on Loopnet etc. Seems like most are understating the expenses.  For comparison (in CT) with a couple of Class C properties in MA, this is what I have found thus far:

Stabilized Western MA properties

1.   Vacancy - As low as 5% (with 25-35% Section 8)

2.  Expenses per unit (Self-Managed) - $5000/yr. With Gas heat/hw paid by owner

3.  Property Mgmt fee - 7.5% to 15% of collections based on the size of the company

I will post this on the CT forum as well.  I'm trying to find out what the Class C-D numbers are for real in the Greater Hartford area.  Also Prop Taxes in Hartford in particular seem to be twice on average than everywhere else.  Water/Sewer seem comparable

PS: My real name is too long. Hence Joe :) We can still hang out.  People with long names can be fun share a few beers with as well! lol.

Hello All,

I'm looking for apartment buildings in the New England Area.  With valuations being what they are, Class C buildings seem closer to my target acquisition costs than Class B.  As I look at various numbers, I'm curious what is a good ball park per unit annual expense in this category.

Say in a 6-12 unit building with gas heat.  Average 2 beds.

I seem to see an average of $5500 in MA.  Would love to hear from buy and hold investors in Rhode Island and Connecticut!

Thanks in advance!