All Forum Posts by: James Denon

@Alex T. Did you end up evicting the tenant? If so, how?

@Rob L. I am late to this discussion. Did you end up adding the submeters? 

I am looking into doing this now in Springfield Massachusetts. (keyword stuffing)

Has anyone done it in MA?

@Josue Velney What bank did you work with in conjunction with the seller financing the deal partially? I would like to find banks that are investor friendly in the area.

@Andrew Laing thanks. Congrats to you too. I found the deals through MLS. The first one was a cash deal and it meets the 2% rule. The inherited tenants are not good though.

The reason I chose a fixer for the 2nd property is I wanted to try to do some value add and cash out refinance to improve the ROI. I would like to retain as much capital as possible so i can buy more property.

Let me know when you are in Springfield. We can exchange experiences.

I am a little late to this forum. I bought 2 triplexes in Springfield MA this year. So far, so good.

One of them with inherited tenants. The other is a value add. The rehab is ongoing on the 2nd one.

2 of the units should be rent ready before the end of the year.

I would love to meetup with fellow investors and share experiences. 

@Bob Couture , @John Menton , @Mike Koprowski

Thank you for your help. I closed recently all cash.

Would you be able to send me your lending officer's name for these banks?

Do you have any experience with these lenders financing based on the appraised value? I would like to be at 80% LTV ideally without waiting for the seasoning period.

Does anyone know a good property manager in Springfield MA?

I am looking for a property manager who provides good service to the tenants and me and has good rates. I am looking for something in the neighborhood of 5-6%.

This is my screening questions that I will be asking? Am I missing anything?

2. What is your tenant placement fee?

3. What is your make ready and cleaning fee?

4. Do you charge property management while a unit is vacant?

5. Are you have licensed in: electrical, plumbing, HVAC, builders (drywall, carpentry, renovations)

6. What are your hourly rates? Will you provide material and labor receipts with the before and after pictures for the repairs?

7. For any repair I would like you to call for authorization. Will you be OK with that?

8. Will you visit the property once a week and take photos of areas of interest once a month? Do you charge per visit?

9. What is your rent collection process?: Online, Cash, check? Please provide an example of the monthly statements you send to investors. 

Here are the attiributes:

-There are some knob and tube wiring in the basement.

-One of the units has electric baseboard heat

-I plan on having local property management company run it for me. 

I called up 2 insurance companies and they gave me a quote for homeowners insurance for around $3500. That seems steep to me for a 3 unit rental. One of them blamed the high premium on knob and tube wiring and the other one blamed it on non owner occupancy and electric baseboard.

Anyone know reasonable and reliable insurance company in Springfield MA who will work with this type of multifamily and provide a good rate? 

I am buying an old home in Springfield MA. It is a 3 family built in early 1900s. It is fully occupied with good cash flow.

Here are the attiributes:

-No certificate of occupancy

-No lead certs

-There is an open permit for the roof but the roof looks fine.

-There i some knob and tube wiring in the basement.

I am buying it for all cash. There was a competing offer with an FHA down 3.5% loan $30K more than mine. The seller wanted to close quick and not deal with FHA appraiser nitpicking on chipping paint at the outdoor stairs and couple of knob and tube wires in the basement.

After a few minor cosmetic updates, I think it is worth $35K more than what I paid for it. Does anyone know a local lender or credit union in Massachusetts who will give the loan based on the appraised value? I would like to be at 80% LTV ideally without waiting for the seasoning period. I believe Fannie Mae and Freddie Mac backed loans do require the seasoning period.

Any reason, I would struggle to get a conventional loan with the above conditions like lack of certificate of occupancy OR cert for lead OR open permit? Any other reason?

Also, I would like to buy the property under an LLC. When I try to cash out refinance, will I have to put into my name and after I refi put it back into te LLC?

Thanks in advance for the help.

@Derreck Wells Thats a load of useful information.

20K is a pretty high cost.  I don't think they would be agreeable to deduct that much. So, I really need to get a realistic feel for how much it would cost.

I found the website to look up the lead status of properties. The triplex was not in there: https://eohhs.ehs.state.ma.us/leadsafehomes/defaul...

Is this the website you were going to check?

What is the inspectors number? Would he be able to give a quote?