All Forum Posts by: Shawn L.

Thanks @Michael Badin

@Michael Badin Do you use any particular resources to market the spaces for rent or just a Craigslist ad or something similar?

Thanks!

@Damien L. Unfortunately I don't have an answer for you but a property I'm looking at has a detached 2-car garage and I am trying to determine the best way to monetize it.  What are the online platforms you reference to find people looking for storage space?

Thanks!

Easy enough to calculate based on the numbers you gave - Principal balance of $214k, 25-year am at 4.9% is a P&I payment of $1,238.59.  You also mentioned there's a 5-year balloon (at least I think you did, I can't see your post when I'm typing this...)  Principal balance at the end of year 5 would be $189,258 which you would then have to refi, keep in mind you'll incur closing costs again at that time and rates will likely be higher than they are now.

I just did a cash out refi on one of my buildings and am doing a bunch of direct mail to find another one. Definitely a good way to free up capital for additional purchases as long as you don't over-leverage and end up in a situation where you're not cash flowing.

@Cara Lonsdale there are plenty of things that go on here that don't make sense to people in other states.  My understanding is that since late fees cannot be assessed until rent is 30 days past due, the state views discounts to pay by some certain date as a late fee in disguise.

Regarding the lease options or lease purchases, I am not sure how they're structured here as I have not been involved in any.

 Unfortunately this is illegal in MA.  To the OP I would suggest sitting down with an attorney familiar with Landlord/tenant laws in Massachusetts and get their input.  The laws here heavily favor the tenant and there are consequences for stepping out of bounds.

Not really what you asked but what jumps out to me is that $1,000 per unit in upgrades barely gets you past the front door.

Maybe I'm taking this out of context, but are you not at the mercy of the market cap rate?  Everyone knows cap rates have compressed in recent years, are they somehow immune to market forces that would push them back up?

I am looking to move up to larger buildings in order to scale more efficiently, but I recognize that the market does still have some effect on asset values.  Curious what everyone's thoughts are on this.

Hi @Account Closed Congrats on closing on your first property!

Assuming this property is in Massachusetts, if the children living there are 6 or under, you need to address the lead based paint or risk being held liable if they are exposed to it. I will caution you that you may receive responses to this thread from people that know nothing of the requirements in MA, telling you that nothing needs to be done, or that you can simply shift responsibility to the tenants. As you will find during your journey as a landlord, MA has a lot more regulations than just about any other state when it comes to landlord-tenant issues.

I essentially asked the same thing on page 1 and it was not responded to; all I have seen is frustration that a vague set of criteria is not being matched. If you're not giving your Realtor specific, quantifiable criteria, I don't think you can expect them to know exactly what you're looking for. I don't rely on my Realtor to do much other than get me into properties on short notice, give me his general thoughts on the properties, and facilitating the transaction. Maybe I'm doing it all wrong but as the investor I expect to do the analysis with some support and feedback from my Realtor. If it were as easy as asking every Realtor in a market to find good deals, we'd all be sipping umbrella drinks on the beach every day.