Maine Landlords- help what do you think

5 Replies

Hi all,

To Maine landlords property managers and anyone else who may have an opinion- I would love to hear yours! I am about to buy a duplex, counter offer is in- the problem is the numbers don't work until after the rent is eventually raised.

Windham more rural part, each 1 bedrooms, each SMALL 600 sqft- however everything is clean and updated. If heat were included, would 1050 per unit be unreasonably high? I am not trying to be skeevy and rents are currently MUCH lower than this. Let's also put it out there that I have no idea what I'm doing.

Lay it on me!

Much appreciated,

Jessie

I don't know rents as well in Windham, but I can tell you that our 1 bedrooms on the peninsula in Portland that include heat are between $950 - $1100/month. 

Your projection seems a bit high for a 1 bedroom in rural Windham. 

That does sound a bit high, but not by too much. Search craigslist or use rentometer.com to get an idea of what rent in the area is going for. 

Have you calculated for repairs? For capital expenditures (big ticket items like the furnace/roof failing)? For electricity? Vacancy?.....

I see you’re a pro member. Use the calculators here on BP. That will help make sure you don’t miss anything.

Thank you @John West & @Katie Magoun , appreciate it! Yes my numbers include all of those projections and are conservative... I'm just thinking long term in order to make it cash flow once I move out. The margin is tight.

However! It comes with 5 acres of land so I was thinking I could sell off some parcels and use the proceeds to refinance, then keep the rents at 950 each and be good to go.

Anyone know how to go about determining whether a lot is buildable, and how much the appraisal process costs?

 Sounds like you are buying a liability? Why would you want to buy something that has such tight numbers? And less you see appreciation being very strong I don't want the pride of ownership.  If there are other considerations like you need tax write off it might make sense but otherwise buy something  that is sure to make money. 

If the lot was produce from larger lot via a formal subdivision, your idea to divide and sell land may not be possible. Also, town specific ordinances (min require lot sizes, min required upland vs wetland, etc) may make dividing the lot impossible.