All Forum Posts by: Jose Escobar

Landing a multi on the East Side is tough. Good luck hope everything works out for you :)

I recently acquired my real estate license and have been performing various CMAs for residential properties. For residential, its fairly simple and straight forward. I understand that Commercial is a different animal in the world of Real Estate but I was wondering if anyone had any experience in conducting a CMA for a commercial property? If so, what are some of the metrics that you look at (Besides recently sold history, square footage, etc)? I was thinking CAP would be a good factor in determining an analysis, I know its not everything but I believe its a good place to start, thanks.

Hey Tim,

I agree with Robin, house hack is a good way to get started. I am also an Investor and recently acquired my Real Estate Salesperson License. I actually been house hacking since 2009 in my current 2 family but also purchased a 3 family in Providence (Near Los Andes Restaurant) back in 2015 as an investment property. Let me know if you have any questions for me, I would be happy to help. Thanks

Hello,

I was born and raised in Pawtucket (Still Living in Pawtucket), its nice too see some local investors. I have Investment properties in both Pawtucket (I am living on the first floor) and Providence. I recently got my Real Estate License in RI and soon to get a reciprocal cert for Mass. t would be awesome to connect with some local investors, agents, contractors, etc.

Hey Alekdandra,

I would double and triple confirm the figures that you are looking through. Are you thinking about putting a Property Management Team in place? When you were quoted the insurance costs, did you take into consideration an Umbrella policy? If so, you will need to change some of your minimum coverage (ex. auto coverage) in order to qualify which will cost more $. When I purchased my multi in Providence a couple years back, that was something I wanted to do right away to protect my investment and my primary residence.

When its all said and done, what are you looking for in regards to a Monthly Net $? I typically stay away from 2 families unless they are really good deals. But if it was a 3 unit, I would ask myself "Can the first floor cover the bill I get from the lender (Mortgage + Real Estate Taxes + Insurance)?" I understand that I am excluding other expenses but that is just my thought process. Good Luck hope everything works out!

I use Scarlet Realty out of East Providence. They are new to the scene but extremely talented in property management. Most of the time the owner is responsible for water and sewer. It is also rare for a 3 unit multi to have seperate water meters unless zoned for something besides residential.

I agree with Linda on this one. At the end of the day do you want them around? I have leases that prohibits any physical alterations of the exterior. Now, you could bake something like that into the new lease but I believe a conversation still needs to happen. You are either ok with what he does or not ok. If you are not ok then you need to let him know that its not ok. So you got a few scenarios, you raise the rent he leaves, you keep the rent the same he stays, you raise the rent and he stays or he leaves regardless. Hope this helps, good luck.

IMO I would try to avoid doing calculations in situations like this because you know that one day the math is not going to sit right with a tenant. So that could lead to problems down the road. I have a 3 unit with coin-ops that has a house meter specifically for common areas, coin-ops, etc. That way I would avoid potential awkward conversations with tenants. Now, for your situation, is it worth putting a house meter, idk. But at the end of the day, are the coin-ops worth the potential problems, idk. Dont get me wrong you may never have a problem but I try to think of all the possibilities that could happen. Hope this helps, good luck.

Hello BP Community,

I was wondering if anyone had any experience when dealing with properties that are going through probate. Long story short, I put an offer in on a single family (Owner Occupied) house in a good area and was accepted by the seller. This was over a month ago, but from what I understand, the offer would need to be Oked by the probate judge in order to continue the process. Between now and when my offer was accepted, the seller performed an appraisal of the property which came in $7k over my accepted offer. It doesn't really matter because my bank wants their own appraisal done using their approved appraisal companies, fine no big deal. I get a phone call earlier today from my agent stating, that the probate judge is saying the Accepted offer is "Too Cheap, for that Area" and making it seem like I am stealing this house. This house needs extensive work and is less that 1000 sqft. I believe my offer is fair considering the amount of work needed for that house and the actual size compared to the other houses in that area. Then my agent told me that, the seller's agent would need to go to court and pretty much explain why that appraisal is valid. So my agent is supposed to hear back from the seller's agent on the court dates. I guess my question is, can a probate court judge deny a sale based on a personal opinion? If you cant use a certified appraisal report to support the value of a property, then what can you use in this particular situation? Thank You for your time.

Thanks for your input. Its not that I am looking specifically at Commercial Condos it was something that I came across and wanted to get some knowledge on that particular investment. I will perform more searches, thanks again!