All Forum Posts by: Brandon Ingegneri

@Latisha Douglas you’ve got to draw lines in the sand and have extremely clear expectations and consequences when tenants don’t follow through. Your going to have turnover, your going to spend money, but you will eventually stabilize.

Get a solid real estate attorney on board, and follow the letter of the law. If you need to spend a few bucks to make an example of someone, do it. Then go through the property and clearly define expectations for the new tenants. I am extremely selective on wiggle room, how much, how often, etc.

@Jases Brown pay for the work performed and they pay their rent. Keep both separate. I made that mistake early on. Not something I’d ever do or recommend.

@Justin Reyes 100% do not touch that money. I have something similar for municipal workers called a 457. I have made that money and my Roth my fortress of solitude money for retirement just in case something we’re to happen. If it does, I know that I am still paying myself first and contributing to my retirement no matter what and will have a pot of gold at the end. Additionally, you want to take advantage of the compounding interest that only being young and having time for growth will allow.

I MAX out my 457 every single year. I MAX out my Roth every single year, and I have a few other investment vehicles that I fund. Other than my living expenses and reserve account, every other penny goes into my portfolio.

@Paul LaGrandeur each has its pros and cons. Currently, I own rentals in both states. It all comes down to how thorough you are, how efficiently you operate your property, and ultimately, what judge you get if it should ever get to that point. Overall, if I had to pick which was tilted more in favor of the tenant, so would have to say MA.

@Paul LaGrandeur currently, 20 of the units in my portfolio are located in Woonsocket. Of those 20 units, I have had one unit turn over in the last several years. Every single rent is paid on time, my tenants all keep everything neat and orderly, and they are among my least needy and least high maintenance tenants. I have never had an eviction take place.

Find a deal. Anywhere. Any city. Any town. Just be sure it’s in fact that, a deal. Not a transaction. Be diligent. Learn your market and refine your process. My portfolio spans the state. I have learned that each city and town has its own little idiosyncrasies that you’ll need to figure out and adapt to as you invest in each of them. None of those have anything that you can’t overcome when a property is dug out organically and purchased as a good deal.

Personally I think it is all relative.  I do believe that the North Shore will absolutely see more long term appreciation than my market and the long term cash out benefits are substantially higher.  Having said that, depending on your entry into the industry, your dollars will stretch further out of state.  Cash flow can be utilized to build some momentum thus allowing you more of an opportunity to make a greater impact in the North Shore.  

It is my experience that the North Shore as a whole does command substantially higher rents than RI generally speaking.  You would have to evaluate your debt servicing in both markets to determine what fits best for you.  Personally, I like investing very close by as I manage in house.  Not everyone has that same outlook and there are a number of people who are very successful operating remotely.  That however, would be a factor for me.  Not sure if the same holds true for you. 

I have actively owned in and around the city for a number of years now.  Overall it is a consistent market.  Due diligence has to be done within neighborhoods as far as street to street in some circumstances.  There are quite a bit of subsections of neighborhoods that someone may not ordinarily be aware of.  Overall the economic future of the city is not optimistic, but believe it or not, the rental market should remain relatively consistent .  Prices do appear to be bloated at the moment, and rents have increased over the last 18-24 months.  It is all deal specific.  In any market if you find a good deal and operate it properly you can make money.  Having said that, I personally would not be investing in any retail deals in this market.  I would be cherry picking select deals. 

It is all deal dependent.  If you dig up a good deal in either market, there are great returns.  Septic systems are something to be considerate of owning property near the ocean.  There are also more stringent zoning and building regulations on some aspects of the building code.  Your investment results are almost always determined on the buy.  If you buy it right, it is much easier to engineer a success story.  If you overpay or buy a dog, it can certainly go the other way if not managed properly. 

Tyler, let me start off by saying that you are light years ahead of people your age.  Just the fact that you are thinking about finances and implementing systems early on is awesome.  There is absolutely zero substitute for starting early.  Saving and investing a little bit of money now as opposed to starting later on but investing more heavily at that time is 100% the way to go.  Max that Roth out every year if you can and watch it grow.  You will not be sorry.  After some time, the compounding will make it grow substantially.  

With regard to real estate, your reverse engineering your initial goal.  Right on point.  All of the incremental steps needed to make that first purchase you are working on, and you absolutely meet your goal.  Keep it up!

Typically you will need to show that the rental property is productive on two years of tax returns for it to be given consideration in the DTI ratio. In commercial loan servicing, they will account for the debt servicing.