All Forum Posts by: Amy A.

Darn, I have a political event I need to attend at the same time!  Hopefully there will be one in October. Please list this on the LALA Facebook page as well.

My number was about $45,000 per year in 2014 with 2 years of living expenses in the bank. This would be enough to meet our basic needs. That's the year my husband and I turned 40.  He was burned out at his job - with daily headaches, missing the kids' events, tired of being taken advantage of, no time for a life.  I had been flipping houses mostly by myself and managing 10 apartment units.  I started the "Free Mikey" fund, and we calculated the number of units we would need to get to $45k in rental income, so we bought 10 more units that year.  He quit his job and started a consulting business.  In 2015 he made 60% more consulting than he had ever made working for someone else.  

Now we have 53 units and have done 1 or 2 flips per year.  We've far surpassed our goal and have added new ones.  Because managing the manager was such a hassle, we self-manage, but I look specifically for low-drama tenants and do a lot of preventative maintenance.  We've decided to stop flipping houses in this crazy labor market since we don't want to do the work ourselves and don't need the money.  He still does consulting work when he wants to.

Your question is valid because meeting our goal was much easier once we had a number.  It's counter-intuitive, but we had to spend money to buy more property in order to have more money.  We're trying to slow down a bit and enjoy life. Spending money on depreciating assets - like campers, cars and boats, is counter to what we spent years building, but we really need to have more fun!  Read the Parable of the Talents to see why it may be hard for some people to stop investing.

I've learned from experience that it's very risky to purchase without a professional title exam. I believe that these sheriff's auctions are "as is", but I could be wrong, so check your local laws. All my foreclosure flips were REO's, so that I could use MY title attorney and get title insurance. There were several times that they found problems that a regular search of the public record for encumbrances wouldn't show (and the bank's title company was less than honest about it). For example, a garage on the property line (I still bought it, but had budgeted to tear it down), improperly discharged previous mortgages, improperly documented foreclosure judgements, and a strip of land that wasn't included accidentally (causing the property to violate setbacks). These are things I would never have imagined being an issue, and I'm sure there are more crazy problems out there.

If there is a property at the sheriff's auction that you absolutely must have, you could order a title exam ahead of time.  These cost a few hundred dollars.  Also, you might live in an area with more modern house lots than I do, so you're less likely to have some of the issues I listed above.  The owner of the land the garage was on tried to shake me down for tens of thousands of dollars for a tiny strip of land because he thought he had me trapped.  It was fun to tear that garage down, lol!

It depends on your goals. If you want to become a top agent, you'll want one that provides consistent training and leads. The quality of his marketing to get you into the brokerage may be a good indicator of this. If you just want MLS access and forms for your personal investing, you'll want one that doesn't charge you much and leaves you alone. Good luck!

Hi, There are just a few things that I noticed.  If it's multifamily of 5 or more units, you probably won't be able to get a 30 year mortgage amortization.  Also, it's unusual to have a multifamily where you don't pay for any garbage, mowing, plowing, or utilities.  Other than that, make sure that your rental income is really market rate.  I see many listings that project extremely high rents.  Desperate tenants who are poorly qualified will promise you whatever rent you ask, and then they can't afford to pay it once they're accepted, so make sure the rents are realistic for the median income of the area.

I replace once the repairs cost about half of what a new unit would be, or if it's so inefficient that a new one will pay for itself over a few years. However, newer isn't always better.  I'm now replacing two high-efficiency condensing gas boilers that have corroded.  One is from 2008 and the other is from 2014.

Issues I have run into that made insurance harder to find and more expensive include asbestos siding and pipe insulation, flat roof with no scuppers, and buildings too close together.  Good luck!

Hi, If it's in the New Gloucester area, definitely contact Terradyne Consultants.  Jeff knows how to work through the process and can give you an idea of the costs.  For financing, I've used Camden National and Auburn Savings to finance commercial property.  There may be others that will work with you as well.  Contact a few (Norway Savings, Gorham Savings, etc.) to see who is the most hungry.  Good luck!

Not only is it reasonable for him to charge you $50 to check you out, you should also spend several hundred on a title search to make sure he can actually sell you the property.  However, you may want to confirm that you're first in line for the property if your background check is okay.  I like to do that for my applicants because I don't want them to waste money if they aren't first in line.

I wish I could attend, but I have a wedding to attend that night. Hopefully next time! Thanks!