All Forum Posts by: Trevor Naumann

I got a tip on 44 units in poughkeepsie. shoot me  message if your interested. 

Welcome to BP

What part of NY are you in? Are you looking to invest in NY?

Depends on what area your in. IMO building is hard. I would leverage your construction experience to fix up a fourplex rather then build new. IDK what part of NY your in but where i am it would be hard to cashflow with a new build fourplex because of modern building standard’s as apposed to fixing up an older property. Especially if while fixing up an older property your able to reconfigure and add bedrooms to the units.

What part of upstate NY are you in? different markets will present different opportunities. If your able to i would househack a 4 plex. If not i would look for a small multi where the prime value add is getting rents to market rates. In my experience you will be able to get a better deal from a mom and pop landlord with under market rents and if you can get in there and improve the rents and leases and make minor improvements assuming interest rates go down in the coming years the value will go up as the monthly payment goes down increasing the value of the property and then i might trade up into a larger building with the equity from the sale. Again that said if your in a market which supports student rentals that could be a good strategy or i just had a client who did a great job with a small lets call it "boutique" Mobile home park which was sitting on the market so it just depends on the opportunities around you.

I follow your thought process here, but the question I would be asking myself is whether or not the purchase price of these D-class properties is actually the price. Meaning, are all of the systems in working order, or will they all need to be replaced within the first 1-2 years? Will the tenants who are willing to live in the property be going to take care of the systems and be responsible for keeping the property in good repair? Where I am in NY, there are many investors who are attracted to the lower-priced properties on the market in tougher neighborhoods because the cash flow looks attractive at the asking price. But once you factor in a new roof, furnace, oil tank, septic, and electrical, and whatever else is an issue, you end up at a price which could afford you the ability to buy a nicer C-class home in a better neighborhood without the headache of fixing everything.

Then assume you purchase the D-class property and do all of the work, you will probably invest more cash in the deal than you would have for the 15-20% down and had a whole lot more headache. If this is the road you want to go down, then why not figure out how to buy a gut job in a great neighborhood so that all the systems are starting at day one with a higher tenant class and more potential appreciation? Lastly, if the D-class neighborhood is not in the path of progress, then you're left with a property in an area which is less 'desirable' to a tenant who may be harder to manage.

This all aside, however, I bet if you speak to more banks, you will find one who can get you what you need. I recently helped a client buy a house that also had two mobile homes on the property, and the two mobiles shared a septic and well and were built in the 1950s. We went through 12 banks who said this was impossible to lend on for their banks before we found one that would, and the property cash flows great. We were able to negotiate a really good deal simply from the fact that nobody else was willing to call and really present the deal to over 10 banks to figure out the financing. Hopefuly that helps in some way. 

 i Agree. Of course it depends on how nice the units actually are and what section of poughkeepsie your talking about. Also i always think you want the greatest number of applicants applying for the units in order to find the highest quality tenants to place in your property.

 Im not Bill but the meet up is still active

 this is great. in the past i have used the share group for scraping leads. Where are you buying your lists?

 thanks ill check it out

Yup, agreed. My wife is an accountant, which is helpful, and we are going with Buildium. I feel like I have a handle on the systems and, in general, am very system-oriented. My greater question is in marketing for landlord clients. Like with all businesses, I'm seeing a lot of mentorship or agency gurus touting which way is best for scaling social media, cold calling, etc., rather than spinning my wheels. It would be great to hear how people added doors to their company. I have looked into DoorGrow, but it feels pretty expensive for starting out, and while I will certainly be leveraging my current network, it would be great to get a direction for scaling to put my energy into.