All Forum Posts by: Sean OReilly

Granted, I'm new at this, but I'm guessing they get paid more than once a month, and you're not a priority. 

Maybe you could talk through their budgeting with you a bit. If they get paid on the 9th, it probably isn't their only pay day in the month. One option may be to incentivize early rent payment, versus enforcing a penalty on late payment. 

Hi Drew,

I actually lived in the Upper Valley for many years growing up. Depending on the winter, that $7,000 may be accurate - this year oil is at $2.10ish, but a few years ago it was double that. You should be able to confirm the gallons used with their oil company. Windows, doors, heating system type and property age also have a lot to do with consumption.

You may want to carry a bit more for snow removal if there are driveways. My single family home costs $35 every time he shows up and that's a bargain. Last year I spent about $500 for one driveway, no shoveling of entries or oil delivery locations. I wouldn't be shocked if you spent double that.

My career is in energy analysis, so if you have any questions on energy usage, or an independent look at what kind of savings you could expect from equipment replacement I'm happy to help out.

I'm looking at a couple of small condos here in NH, and have been having a hard time getting financing for a rental unit. It seems that lenders aren't interested in loans for properties less than $80k, even with 20-25% down on a $50-60k purchase and a property that should appraise between $80-90k.

I've heard of people getting creative with things like prosper and the like, but they'll only do $35k max. Anyone have any other ideas on how to get these kinds of deals funded?

Hi Matt!

Glad to see there's someone else on the hunt here in NH. What I've been doing is some quick math on a spreadsheet - throwing in the taxes, anticipated rent, and some percentage based costs (10% vacancy, 10% maintenance, etc). It's a quick way to see how the numbers fall. After doing enough in my area, I have an idea of what I can spend per unit to have something that's feasible. Then, when I see something that looks promising it comes down to a drive by. 

I can pass along a copy of what I've made if you'd like (it's in Mac format, but I think I can save it as Excel). 

Sean

For me, it's a "totality of circumstances" My main interest is cash flow (versus appreciation). Looking at 3-4 family buildings with cash flow of +/-$-$100 per door "on paper" was a bit scary, considering the age and condition of the buildings in question (and considering that I intend to self manage, so my time is worth something as well, and not accounted for as property management). 

Many of the buildings I've seen in this area are +/- 100 years old and would require some capital expenditure up front (structure,roof,windows,etc). Anything "unforeseen" on top of that would have quickly destroyed my 10% repairs and cash flow for the year. The area I'm looking in is somewhat economically depressed - on it's way up, but slowly, so lots of slow-pay tenants on top of it.

If I was looking at buildings in a better neighborhood, and not looking to self-manage, it would be a different story...

I'd also be curious to hear opinions on this scenario. I've actually passed up a lot of similar situations and as a result have yet to make my first purchase. I suspect it has to do with what you're looking to achieve... 

Years ago, I moved out of my home and rented it while we waited for it to sell. We had tenants that thought they experienced mold in the home, and learned a few things from the testing company:

1. Mold exists in the air naturally anywhere. It lives on surfaces outdoors, and gets picked up in the air and blown around. For this reason, a professional will take air samples outside of the residence, as well as inside, to establish that the mold level inside is elevated.

2. Mold cannot always be positively identified on visual inspection (mold and mildew are two separate things, and black mold and mildew can look similar).

3. Most molds are generally harmless, although some can be highly toxic.

4. Professional mold testing is expensive, but will be given more consideration should the matter go to court.

Testing ran about $1,000 in 2008, for both surface and air samples. In the end, what was thought to be "mold" was actually mildew. 

Having said all that, the EPA has guidelines here on how to handle various building materials that have been in contact with water. For the most part, carpet that has been wet for more than 24-48 hours should be removed and replaced, and in all cases the padding and subfloor underneath should be dry.

Hi All!

My name is Sean, and I've found myself here at BiggerPockets trying to take in as much as I can about the multi-family housing market here in central NH. I own my own home, but have no other experience investing in real estate (although I have a significant background in commercial construction). 

In the short term, finding something that will generate a little extra cash is my goal, while I'd love to be able to move into real estate full time (owning rental properties and possibly rehabbing). Right now, I'm working to locate a property, as well as find ways to finance a property once I do find one.