All Forum Posts by: David Marshall

Hi Trainor, thanks for saying hey! I'm a multi-unit investor in Southern Maine also. Let me know if you would like to talk real estate sometime.

Hi Grace,

Great questions about FHA loans.

It is possible to get a FHA loan that will credit 75% of the projected rental income for the units other than the one you will occupy. A couple of years ago, my wife and I bought a triplex with a FHA loan in the Portland Metro Area. All of the units were vacant and 75% of the projected rents were used from two of the units in addition to our incomes to determine our ability to pay the mortgage. The loan officer we used was very experienced with multi-unit financing and was able to help us when other lenders could not.

Recently, I have helped buyers get pre-approved by providing examples of multi-unit properties to the lender. The example is chosen from the MLS based on the buyer's purchase criteria.

Feel free to reach out if you would like to talk more about with FHA loans and multi-units.

Hey @Derek D., great questions about short term rentals in Portland. The comments I made previously were for Maine in general and based on our experience with short term rentals in small coastal towns. The Portland Peninsula is a market with strong demand throughout the year, including winter. The other neighborhoods in Portland have lower demand in the off season. The short term rental unit that I own and manage in the West End is priced right and has a high occupancy rate even in the off-season. 

The particulars of a property - location, number of bedrooms, costs of utilities, financing - will determine if that property will perform better with longer term rentals in the off-season or with short term rentals all year. 

Please be aware that the City of Portland has introduced new short term rental regulations. There are many articles in the Press Herald and the ordinance and permit info is on portlandmaine.gov 

An investment property require at least 20% down when you are not going to be living in the property. If you are going to be moving to Maine in the future, then wait to make the purchase for a time when you can reside in the property for a year or more, and you will be able to use the FHA Loan for 3.5% down or the VA Loan.

@Jon Mccarthy the answer to your question is yes, Maine is a place where buy and hold investing and flipping are possible. The key is to know the market that you are going to invest in, and make sure the numbers work. Buy and hold investing is a lower risk way to start. You can get your first multi-unit property by focusing on a 2 to 4 unit and living in it for a year or more. There are a variety of markets and properties to choose from in Maine and with some thorough research, you can find one the works for you. 

Hi Derek DeCesere, the challenging part of year-round short term rentals is the winter. As a co-owner and manager of short term rentals, I can say that winter requires more creativity and effort to make the numbers work. Creating targeted ads on social media can help drive higher occupancy. Analyze the numbers and determine if it makes more sense for a unit to be leased for few months as a furnished winter rental. The lowest rates and highest vacancy occur in December, January, February, and March. If you subtract the limited revenue by the costs of cleaning, fees, and increased advertising; then you'll get a sense of the profit margin. Compare that to the going rates for winter rentals. 

Hi @Jeffery Sullivan, 

Welcome to BP, I agree the podcasts are awesome. Southern Maine has several hot markets. Smaller multiunits are great great investments. 

This week I have officially become a real estate agent with KW Commercial (Keller Williams Realty) in the State of Maine.  It is exciting to get more involved with real estate.  The focus of my service will be for investors in Casco Bay and Midcoast Maine.  The license will also be helpful with adding properties to the multi-unit portfolio that my wife and I building.  I am looking forward to using my knowledge and skills to help investors in Maine.

Definitely factor in the cost to furnish the place. From some podcasts that I've listened to, people usually budget around $8,000 2 $10,000 for furnishing a house for vacation rental. If your thrifty then, you can probably come in lower than that. Check out the website airdna.com which provides great data for various markets. If your town isn't in one of those markets, then take a similar market nearby. The reports only cost fifty bucks or so. That data will help you project vacancy rates and average daily rates for vacation rentals in your area based on the size of your house. Best of luck to you.

http://www.pressherald.com/2015/06/23/national-data-confirms-big-jump-in-portland-rents/