All Forum Posts by: Chris Hanisco

@Chris Hanisco I would look for more sources regarding the rent prices. Realtors want to sell property and get that commission so they may be overly optimistic about rent potential.

You could check Rentfax for comps. Small price to pay for less biased info.

@Chris Hanisco - I have a feeling that you will own a portfolio of investment properties a few years from now. Hats off to you for thinking big and SMART.

To your success.

@Chris Hanisco Definitely! It's not the management to be afraid of. Imagine a 21 year old kid having to collect rent from adults 2x my age! you've got it! living in the multifamily property makes the management easy but please please please buy multifamily whatever you do! do not buy a single family residence to try to rent out. All it takes is one major repair and you'll wind up working for free. Lesson learned the hard way :-/

@Chris Hanisco

I’m always an advocate for house hacking. Go for it and good luck. You’ll make money and experience, how can you beat that?

With two unit buildings, look at your mortgage payment when you are done.  Is it more than the rental value of that unit?  That's one thought.

One of my first properties was a similar situation.  I took over the basement and garage, so I got the extra living space I needed.  

It looks like a good cashflow scenario. More so when the minor rehab is attended to, I believe that you would be able to increase the rent on the other side.

As long as your rents are close to 1% of the value of the home when you move out. And while you're living there as long as the difference between what your tenants pay and what your mortgage is, isn't more than you'd pay for a SFH mortgage or what you'd pay for rent for a similar property, why not build equity and plan on making money when you move out!

The only flag I see is that you are buying a property that has an ARV of less than you're total money in, why are you paying more than it is worth?

@Chris Hanisco I applaud you enthusiasm and courage to step out of your comfort zone. A couple of things.  I have not been in that next door unit but I know what it looks like and smells like, and I know that tenant. You won't want this tenant in there after purchase, be prepared for an expensive rehab and a couple of months of no rent. I also know that LL; he/she does not give a crap and has not done any improvements or maintenance during their tenure. One more item; check comparable rents yourself and always do your own due diligence in this business. Don't fall in love with this or any other property, I'd suggest looking at some more listings-especially with more doors if possible. I admire your strength of character and wish you all the best!!

I would double check rental property rates in your area since your income is a key variable. I do not trust the rates suggested by the seller's agent. Your buyer's agent may have your best interests in mind, but unless your agent is an investor or knows a lot of landlords, he/she might not know what they're talking about. Craigslist and Zillow are good places to search, of course, as are property managers. A 10-minute call will provide the information you need.

CapEx: If your heating system only has "3 years" left, then your CapEx should either account for a new heating system or you should have a completely separate line-item budgeted for a new heat system. You don't need to be a numbers whiz here - but some simple planning will keep you safe.

Expenses: I'm not saying your expenses are bad - but you should certainly ask if there are improvements you can make that will reduce the expenses you carry over time. Let's say you need to retire the heating system. Would the cash you have in hand be well spent to install heat pumps so the tenants pay their own heat? (This only works if the tenant pays their own electric, of course.) What are other ways you could reduce the expenses you carry? Heat pumps often need a backup heating system in New England, but many landlords in Maine are moving in that direction.