All Forum Posts by: Steeve Breton

PS. of course if they replace they would then own the units and take them when they move out.

So, I purchased a 2 family a while back that had a washer/dryer combo in one of the units. I did not advertise the unit as having washer dryer included. Current tenant was happy to see laundry machines when they first saw the unit.... I should have saw it coming and planned ahead.... The washer stopped working this week.

I figure I have at least 2 options. What would you recommend?

1. Call repair guy and pay for repairs.

2. Tell tenant they are responsible for the unit and they can call the repair man and pay to have them fixed or replace. (doesn't seem like a nice thing to do)

Thoughts?

Thank you

Your post asks about ROI in the title. One of my favorite saying is "do the numbers and the numbers will tell you what to do". Do your comps on the SFH to determine your ARV and potential profit. Then do the same with the MFH except instead of using comps you'll want to calculate your Net Operating Income based on expected monthly rents & assuming 50% expenses. Divide that by the going cap rates in the area (something like 6% on a basic wood frame 2 or 3 family in a blue collar neighb)

As far as selling quickly, either will sell quickly if priced fairly. There is huge demand for renovated multi units right now. Heck, if you tell me more I might be interested in it :-)

@Raymond B.

Hi Raymond, thanks for the tip. I don't see a list of names below the post so I scrolled up and copy/pasted your name after the @. Pretty sure that's not what you suggested though.

You guys are great. Very helpful responses all around. Good things to consider and specific numbers to work with. I'll probably run the numbers at $55/ sqft as my low end and $90 at the top end. Will also plug for parking expansion, possible water/sewar work, code upgrades.... May not work even if I get the building for free :)

Tom Mead (wish I knew how to do the @ ting). Would love to get the updat on the $/sqft you friend ended up with.

Hi all,

Similar question here. Wondering if I can entice a few more responses regarding the cost of renovation. Roy's numbers above seem very low for this area... I'm thinking I should just double those.

I may be able to lock up an old school about 15 miles s/w of Boston. Approx 15,000 square feet for $400k. I don't think I would completely gut it but lets assume I did. What's a good $ per square foot to use for planning? I'd probably go with materials appropriate for a B quality neighborhood.

Thanks

Ann,

Thanks for the comment. Top notch as usual.

I figured if I got nothing but crickets it could mean Springfield is such a great market that nobody wanted to share it with me. But I know everyone on BP is happy to share so it must full under the "if you don't have anything good to say..." category.

Hello BP Community.

Anyone have good working knowledge of the Springfield, MA area? I'm looking to pickup more buy & hold properties and seems like I have to go west of Worcester, MA to get respectable cash flow (near the 2% rule) or (12+% cash on cash w/ some leverage). My questions are many but can be summed up as follows.

1. Are there solid B neighborhoods in Springfield, MA? ... meaning several blocks not just block by block.

2. If you were to generalize the Springfield population, would it be fairly negative from a landlord's perspective? I've read MANY posts on other sites about how Springfield renters are mainly pot smoking lazy bums that don't care about their living conditions and will likely not pay rent and often damage your property.

I invest in multifamily part time and looking for good cash flow to support retirement in 15 years. I would hire a property manager for any Springfield properties. However, even with a PM, a crappy neighborhood and tenants would be too much hassle for me to do part time.

Thoughts?

Thanks to all for the input. Good stuff as usual.

Thanks Colleen. So far sounds like it won't be much of an effort for me. He's mid 40s and in good shape and very functional. Went blind 10 years ago. I have handrails and good ceiling height. Will expect him to ask for some sort of bar/rail in the bathroom (or I'll just offer). I suspect he'll be cooking. There's an electric stove and microwave.