All Forum Posts by: Gino Barbaro

@Susan O.

Hi Susan

You need to fix the leaky roof  completely.  The tenant does have cause against you if you don't fix the problem.  Have a remediation company come out there and assess the situation.  You can have the apartment tested for mold, and then get an idea of what to fix.

Mold can be a serious issue.  The tenant can complain he has respiratory problems or any other ailment, and it's his word against yours.  Be proactive and try to solve the problem

Good Luck

Gino

@Rumen Mladenov

I have had that bad taste in my mouth a few times myself.  I once went after the judgments, tenant paid a couple payments and then disappeared.  It was not worth my time or money. I have learned to screen better and follow the letter of the law.

Either decision you make is the right one.  Just let the anger go and move on  Most tenants are good people.

Gino

@Nicholas Patrick

Hi Nicholas,

You can always try to work for a broker part time to see if you like the business.  If you do, then it may be time to leave school.  I would focus on business classes and learn how to read and analyze financial statements.  Also, courses on sales and marketing would benefit you

Gino

@Noel George

Hi Noel

What do you intend to do with the property, buy and hold or fix and flip.  Always have an end in mind when purchasing a property.  That will affect the decision tremendously.

What is the monthly rental, and have you calculated cash on cash?

Gino

@Alicia Kennedy

Hi Alicia

Welcome to BP.  i am going to be relocating to Jacksonville in the spring for the same reasons you listed.  Looks like a terrific market that institutions have yet to bid up like many other parts of Florida.

Good Luck

Gino

@Blake Marks

Hi Blake

some quick rules of thumb

mannagement 8-10% for this number of units

cap ex 20 per unit per year.

expenses normally run about 50% of income in a multifamily property, but can vary with taxes and ager of property.  If property needs more work, the repairs can be higher.  Repairs can normally run about 8-10% also.

Insurance is market specific but I use 250 per door.

Marketing can be relatively low if you utilize a website and internet.

Property taxes can be accessed at town hall or by looking at comps.

Turnover has to be analyzed by speaking to local contractors and handymen.  In our market, we can have a 2 bedroom painted for $600.  Vinyl flooring is also pretty inexpensive.

Try to reach out to brokers that have experience and possibly own some multis.  They can refer you to insurance agents, contractors, etc.

Good luck

Gino

@Jameson Drew

What a great deal!  You have found your niche.  I would keep hounding the local bank for more deals.  I think the strategy is perfect.

Gino

@Nicholas Varner

Hi NIcholas,

In NY, it's worse.  One county has different laws than the county next door, and it seems as if they enforce what laws they want to.  It is definitely for a lack of funds, and complying with these laws has made it difficult to own property.  The same laws that try to deter illegal renting have actually caused it.  Our taxes are so out of control that many families have to fix their basements and rent out to pay for the taxes.  Now, the town is coming around and doing inspections, charging for the inspection and making people abide by the code.  For us, this has only led to property values being stagnant the past few years.  It may be different in other parts of the country.  One of the key factors when looking into a market to invest is to find out how local government feels about business and taxes, are they pro business?  Not in NY

Gino 

@Kyle Godbout

Hi Kyle

I think it all depends on your strategy.  I invested in Rochester NY in small multis in the same type of neighborhoods.  The cash flow is great, but there is very little appreciation. So if your strategy is to create wealth through appreciation, it may be difficult.  But if you intend to hold longer term and pay down some of the debt, then that will create your wealth.  I am always partial to cash flow, so buying to hit my level where I am financially free was always my goal. Once your bills are paid, you can move onto bigger fish to fry.

Good Luck

Gino

@James Haffner

Hi james

You have to distinguish between an investment and a purchase for a family member, even though it is your mom.  It is a dangerous thing to go into an investment with no budget for repairs/ property management.  You said you will help her out.  That will not qualify as an investment because you will have to dip into your reserves to handle problem.

If I had the opportunity to help my mom out and she needed help, I would do it, but I would not confuse it with an investment.  That money can be allocated elsewhere  if you are not helping her out, there is the lost opportunity cost involved.  It is a very personal situation, and only loving sons have their own answer.  If you intend to live with mom later on, then that would be a wise idea.  You could always look for a duplex where she lives in one apartment and you rent out the other to help pay for costs

Good Luck

Gino