All Forum Posts by: Frances Buerkens

@Joe Callantine

I think there’s great potential in areas with a shortage of affordable and quality housing with a reasonable (15-30 minute) commute to work. I live in Maine and the heating costs are brutal, regardless of who pays, so a small, insulated home makes a ton of sense. I’ve been researching it and see barriers with zoning, water and sewer - but I also see opportunity if those barriers can be overcome.

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. 

I know that @Peter Brandon would probably be psyched to attend. I'm in Biddeford, so couldn't attend a NorCon meetup unless it were a weekend - but I'm there every weekend. (Love the Whites!)

1) Good job MOM! (Thanks for the laugh.)

2) My partner and I are house hacking in Biddeford (duplex). We renovated and are renting my SF home in South Portland. Now we're on the hunt for buy and hold deals to BRRR. DM me if you're keen to grab a drink so we can all meet.

@Nicholas Leimbach

Not all hazardous materials from old homes are necessarily bad - though that sounds like an oxymoron. Asbestos makes phenomenal exterior siding, holds paint well, and doesn’t require maintenance, which is beneficial in New England’s harsh environmental conditions. It’s outside the house, so you’re not touching/breathing/interacting with it. People also say that vinyl siding is “maintenance free”, and IT IS... until the next wind storm rips it off the side of your house or it disintegrates from UV and needs to be completely replaced.

Asbestos flooring and insulation, however, must be encapsulated (at minimum) or mitigated (which is scary expensive). Your rental regulations in your county and state might offer you some guidance.

I live in an 1880’s two family home in Maine and this place is in fabulous condition. Water leaks through the granite fieldstone foundation, but drains well and dried quickly due to good air circulation. Electrical is updated and it’s a flat top roof so was easy to insulate the roof. All windows need reglazing, but otherwise this house is a way better build than anything built in the last 15 years. That said: I looked for two years, found a needle in a haystack, and placed an offer the day it hit the market. If I have to move that fast in “podunk Maine”, it must be worse in CT.

Hello! I'm looking forward to joining you next Wednesday. I am returning from a business trip. Provided my plane is on time, I'll be able to attend! 

@Joel Fine I am in the same boat. The industry is overdue for disruption.... There is too much incentive to have turnover, since it’s obviously where some of these folks are making their money. I have zero problem with someone else profiting on me, but only if their incentives align with my goals too - otherwise how can these industries see eye to eye? Maybe you can negotiate a rate that has proper incentives. Offer them a extra for renewal, but take away payment for placing new tenants (except for the material cost of promotion, such as advertising in a newspaper).

@Timothy Howdeshell I have my MBA In OperatIons Management from a no-name institution and spent $20K all-in. I knew I would be self employed (eventually) so didn’t see the value in spending $100-200K on a piece of paper to qualify myself. My school isn’t sexy and my experience at school wasn’t “FUN”, but since my intent in pursuing my business degree was to maximize ROI (minimize financial input and maximize financial gain in the short and long term), I know I made the right choice for myself. After graduating I tripled my income and have been able to spend that extra income on buying property since I don’t have school debt. That is ROI. If you want a degree to teach you how to think like a business person, then think about how much that $100K degree is really going to cost you. And... you don’t need an MBA to take some classes in finance. :)