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All Forum Posts by: Brandon Ingegneri

Brandon Ingegneri has started 41 posts and replied 984 times.

Post: Tenant Expectations for a C-Class Neighborhood

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

Fan, during the application process, I do check credit, background, etc.  However, I take those with a grain of salt.  I have tenants with previous evictions, bankruptcy, etc.  I look at the overall application and I set a few hoops for them to jump through if they want the unit.  I don't make it as easy as fill out an application.  I make it a selection process.  

So, my background is as a firefighter.  You can't just walk in off the street, apply, and get the job.  They will post an application period.  You need to submit your completed application, along with supporting documentation by X date, and then the process progresses from there.  I do the same thing with my applications.  They need to jump through a few hoops.  I need to see that they are willing to put the effort in and will appreciate the building and the service that they get once they have moved in.  Ive sold off several properties recently, but I have had ZERO evictions in over a decade owning and operating unit counts in the hundreds.  I have NEVER had an outstanding rent payment proceed beyond the 15th of the month unless there was a defined date that a balance would be reconciled for non habitually late tenants.  I have NEVER had the need to evict a tenant, and I have NEVER had any unit vacant beyond 30 days unless we were renovating it substantially.   

It all comes down to 4 things whether it is a class A neighborhood, class C neighborhood, or even vacation rentals.  It is all about screening, efficient service, communication, and prompt enforcement. Those are more valuable skills to develop as opposed to knowing a .2% deflection in job growth this month.  At the end of the day, real estate is not the business of real estate, metrics, or statistics though those do play a factor.  It is a business of people, and the better you can understand your customers, partners, and tenants, the better you will be.  Then, you create molds for different situations as they relate to everyday people, and then you are able to preemptively circumvent issues or very quickly and efficiently mitigate them when they do arise regardless of the neighborhood or property class. 

Post: New Investor, Providence RI area

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

First time homebuyer, minimal amount down.  The sooner you grab a house the better, whether it be a single or a multi.  Throw a 15 year mortgage on it, and don't look back.  Your entering your power years where your earnings will only go up.  A 15 year mortgage may be a lot to take on at first, but as you earn more and more, it gets much easier, and you'll be glad you did it.  Made my first purchase at 22.  Took out a 10 year mortgage.  Needless to say I worked like an animal in my 20's, but I haven't had a mortgage for a number of years now.  Well worth the sacrifice early on.  That opens up endless possibilities for you in your mid to late 20's.  You will have infinite options. 

Post: How to survive the next crash?

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

@Caleb Heimsoth hit the nail right on the head.  The long and short of it is to remember that bears lose money, bulls make money, and pigs always get slaughtered.  So long as you don't chase the market right to the top like a million dopes did in 2007, over lever, and have substantial short term financing in place, you are ahead of the game.  Stockpile as much cash as possible to weather a storm, be vigilant on the acquisition, and get your systems organized now while there is still stability. If you buy right, a downturn won't make you even skip a beat. 

Post: Raising rent on Month to month

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

What I have begun doing is sending out a letter 60+ days out from the expiration of the lease.  I will either offer a no rent increase or a minimal rent increase to resign a year lease.  If they choose not to, the flexibility of a month to month lease incurs additional fees.  Generally a minimum of $75-$100 additional per month.  Needless to say, I have a minimal amount of month to month leases. 

Post: adding an Electric meter

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

It is all going to depend on the building layout, etc.  Without pictures it is hard to determine.  Also, I am assuming that this is most likely a 400amp service, which will generally be more costly to upgrade.  The materials alone for commercial services have increased significantly in recent years. 

Post: Fixed or HELOC on primary residence?

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

You aren't missing anything. The HELOC gives you the flexibility to recycle money. If you don't utilize it for longer term financing, your hitting it right. It isn't about flipping houses or adding units. It is all about flipping money. Compounding out your investment and using the returns to generate more income that can in turn be reinvested. I continually have a HELOC out on my personal residence that gets deployed, returned, etc. It is a great option to have at your disposal.

Post: How to value vacant multi-unit property

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

How many units? Small multi, I would run mainly off of comps.  If it is a commercial multifamily, I would tend to look more at the cap rate.  Having said that, you have to run the numbers either way, take into account your value ad if any, and assess the cash flow.  

Post: Should I buy these Duplexes

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

How much can you increase the rent roll by?  Will the property even cash flow?  Does it need extensive work?

Post: Multi Family Property

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

The largest reason is because zoning ordinances and regulations have changed in a number of these cities and towns.  For example, I own a 5 unit property in northern RI.  Across the street, I purchased a vacant lot that I made into a parking lot for the 5 units.  In the 80's, a 6 unit property sat on that land and subsequently burned down.  I approached the city about what if anything I could build there.  I can't even put a garage on the land without having to get variances and jump through a bunch of hoops.  

Same city.  2 unit property that had potential for a 3rd unit.  I inquired about legally renovating everything to make it a legal 3.  I purchased the abutting vacant land also and merged the lots.  Even still, I was denied due to not meeting the square footage minimum with the lots.  

If you compare my two deals, the lot that the 5 unit currently sits on is only moderately larger than the two combined lots that I wanted to convert my 2 unit to a 3 unit.  If you have something existing and are grandfathered in, your in good shape.  If you are trying to expand the zoning scope, it is a process.  If you are building new, you will need to typically jump through a few hoops depending on the unit count.  However, I have seen with new construction, that side by side units require much less red tape to build new as opposed to a traditional "decker" style multi.   

Post: Hello, New Member here.

Brandon Ingegneri
Posted
  • Rental Property Investor
  • Providence, RI
  • Posts 1,007
  • Votes 594

@Stephen Douglas, that all sounds excellent.  I have multis in all of the cities that you mentioned and manage a number of others in those areas as well.  So long as you buy them right and efficiently operate them, you'll be in good shape.  Keep your time in with the guard.  Im in a similar situation with a municipality, but if you are able to cover health insurance through the service, that makes the transition out of the traditional W-2 much more feasible and also covers all of your bases.  If I can ever be of any assistance, feel free to reach out. Like I said, I had a similar situation, and if you place all of the pieces properly on the board, you already have a recipe for success.