All Forum Posts by: David Marshall

Hi Jeremy, Greater Portland is my focus too and I have experience with short-term rentals, long-term rentals, BRRRR investing and flipping. It would be great to connect.

Hey Ray, I'm from Portland, Maine and I've been investing here for one 20 years. There is a group of us that meets montly and the next one will be in October. I'd be happy to talk sometime. 

Welcome to Maine Logan! It is great to hear about your enthusiasm for investing. Auburn is a great place to get started. Recently I completed a BRRR in Auburn and then sold it and did a 1031 exchange into an investment in Biddeford. The median prices in Auburn are below the median in Maine and there are many opportunities. Wishing you success!

Quote from @Collin Grunewald:

Can you deduct the expenses against the income if it's in your name versus an LLC? And depreciation?

As an investor, I deduct the expenses against the income and depreciate rental properties that are in my name. I have used a couple of CPAs to do my taxes over the years and was advised to depreciate investment properties. It is worth while to contact a CPA that understands investment properties and get advice. 

 FYI - I am not a CPA and this is not accounting advice.

Hi @Susan Sullivan, while I am not a lawyer (and this is not legal advice) I have found that with most investment properties it makes more sense for investors to use a conventional loans and hold the titles in their name. The rates and terms with conventional investment loans are usually better than commercial loans, which are almost always required when you are using an LLC.

There are a few exceptions that come to mind:

1. If the property needs a substantial rehab and an investor needs funds to make improvements, then a purchase plus improvement commercial loan may be the best option in combination with an LLC.

2. If an investor already owns 10+ properties and conventional financing is not an option.

3. If there is something unique about the property that prevents a conventional loan from working, such as two houses on one lot or if a condo association is step up in a way that prevents conventional loans from working.

4. If the property is a multi-unit with more than 5 units.

Ask a lawyer for advice and consider forming a property management company as an LLC if you plan to manage the property yourself.

@Nico Corrao given that these are federal funds being handled by the municipality, you should expect oversight of funds disbursement. Depending on the program, there may be preferred vendors. As far as material restrictions are concerned, if it is in a historic district, then there may be material specifications. Otherwise, material restrictions are less common. 

When I served on the Portland City Council, I was regularly involved with the CDBG program. Feel free to DM me if you would like to discuss this topic more in depth. 

Quote from @Bethany Turon:

@Nick M. If the seller isn’t in a rush you could wait a few months and then do a conventional owner occupied with 5% down. Even if it’s not a full year it should be fine because you weren’t expecting to move when you bought your current property. That’s probably your best option if you have limited cash availability.

Unfortunately, the 5% conventional Home Possible loan for 2-4 unit owner occupants changed to 15% down last year. It was a great financing tool at 5%. It is still better than 20% down though. 

Yes, I just bought one in Portland and it was on the MLS.

Hi Chris,

As an investor who recently switched from short-term to long-term rentals in Portland, former Portland City Councilor and REALTOR, I suggest becoming familiar with the pending referenda and the city's rules and processes.

Feel free to contact me to discuss further.

Here is a link to the current ordinance PDF from portlandmaine.gov that starts on page 34:

https://www.portlandmaine.gov/...

Here is a link to the proposed language of the referenda questions with short-term rentals on page 14:

https://www.portlandmaine.gov/...

Here is a link to the Press Herald story on referenda:

https://www.pressherald.com/20...

Here are some links to the PortlandMaine.gov concerning short-term rental registration:

https://www.portlandmaine.gov/...

https://www.portlandmaine.gov/...

@Ray B. it sounds like you can benefit from talking about your options with companies that specialize in the installation and maintenance of solar energy systems. Before I had a solar energy system installed, I had a couple of companies provide proposals. The energy models provided by the companies along with my own research helped me see what made sense for the property.

Southern Maine has more sunlight hours than Germany, which is the solar capital of the world. 

On a three unit in Harpswell, I added 40 panels and five heat pumps. The building used to guzzle home heating fuel and now it is heated by solar power through high efficiency heat pumps, which also provide efficient cooling for an added bonus. With the new system in place, the hot air furnace is just a backup system, which was not used last winter. The financing for the panels and heat pumps is almost equal to the previous cost of home heating fuel and electricity. The loans will be paid off in 10-15 years  and then the cost of power will be equal to the maintenance cost of the system. This set up stabilizes the cost of energy and shields the budget from the volatility of the oil market through financing.

Feel free to reach out if you would like to talk about solar power in more detail.