All Forum Posts by: Brian J Allen

Oddly enough i was in a 3 decker STR yesterday on Everard Street for sale. Guy was running the whole building as AirBNB and doing well with it. There is demand since there are limited hotels and they are pricey. Also the airport is back up and running which will help. The colleges have demand and with Covid a lot of students are in STR as well. Message me if you want to discuss further.

Arian,

Sadly I am in a similar situation but not exactly.  I purchased a 2 family in Worcester where I was told the tenants were on Section 8, turns out it was RAFT(covid aid) through RCAP.  RCAP continued to pay the original owner (as they have limited ability to change anything) and i would get the checks a month or so later.  No one could produce any paperwork.  When that ran out they applied to RCAP again, which took more months.  Just so you are aware, I have been made whole, or actually will be, according to RCAP and a couple more checks keep coming.  

Since I have received the money from the government (the tenants have paid me 50% rent for a couple months) and at this point I am whole you would think I would advocate letting the government program play its course.  However, I sadly am in the camp of the others above.  I am tired.  I am tired of trying to get my tenants to pay.  I am tired of waiting for RAFT to pay and figure out that I am the owner, and send me random checks for the wrong amount with no indication of what month they are paying for.  Simply tired.

I can't wait until spring to end things and try to start over with new tenants.  At this point I just want to start over.  

The key decision here is if you want this person as a tenant, and if you think you can get a better one.  Short term pain of a couple lost months may be better than dragging things out for 6-12 months if the result may ultimately be the same.

Best of luck on your choice.

We can also price these buildings per SF. They range from $80/SF for junk to $200/SF for the super good stuff so there is a huge range. Most are in the $110-150/SF range. Also, we can price based on market rents - CAPEX. so a good building with no CAPEX runs about 110X monthly rent. So $1500X3 = $4500 X 110 = $495k. if it needs a roof (subtract $15k) if the bathrooms are poor (subtract $5k per BA) if it doesn't have central heat on the first floor (Subtract $10k). So the pricing is not just CAP Rate, but a more involved construction related pricing. I hope this helps. I have been in 1650 multis in Worcester in the last 4 years and have lots of data on building systems and rents and market prices. When you crunch the numbers you can still find value in this Market.

I would reach out to Bruce Mathieu at IC Credit union. And they are local to Leominster. They also do 80% LTV for portfolios

Still trying to get them out in multiple properties

nature of the game.

I am with Lien on this, but in Worcester we are seeing the number even higher in some cases.  I made an offer on behalf of a buyer where we offered $10k for each vacancy and still ended up with someone on one of the floors.  They simply couldn't get them out with 45 days from offer to close and the $10k incentive.

Very kind of both of you.  Jose I would be glad to help.  Also you should head over to the Worcester Meetup.  There are a lot of like minded folks you can chat with.

it all depends on the condition of the property.  There are places for $500k with lots of deferred maintenance and others that are in great shape.  I would want to have $15k available on most places, but if the roof is older the roof alone is $15k.  Older heating systems can be up to $10k per unit.  The key is to get a place with good bones, so what you are addressing is cosmetics not electrical or plumbing upgrades

Give Wendell Butler a shout.  He is great at working through these low down payment loans.

I agree, do not chase COC. Look for something that has value long term, and incrementally raise your rents. If you spend all of your money fixing things, you will never win. Take a quick look at this.

https://www.biggerpockets.com/...