All Forum Posts by: Jeff Neblett

Hi guys,

I am looking for a sample property management agreement as well. Can anyone help out?

Thanks!

Kristopher,

Thanks for the advice.  Good call on the tagging, will be sure to do it in the future.

Robert, Shaun, or anyone else.  Any thoughts on the figures I posted above?  Am I being too rosy?

Shaun & Robert,

Thank you for the replies.  Sorry I was slow to get back to you.  I was out of town and then very busy at work when I returned.

After analyzing the numbers a bit I think my projections may have been a bit too rosy as I wasn't including the increased taxes I will have to pay due to the loss of the residential exemption I am currently benefiting from in Boston. This amounts to an extra $150/month in taxes unless I can somehow keep the exemption. In the next few months I plan on updating my kitchen by refacing my cabinets, putting in a new countertop, and buying new appliances (need to install dishwasher as there is currently not one). With these updates I believe I could rent out the unit at $2,400/month and have the tenants pay for all utilities. Also, these updates should allow me to get rid of the monthly PMI of $103 I am paying, which can largely offset the increased taxes. Please see below for the figures:

Rent:                               $2,400
Vacancy (1 mo.):                (200)  
Net Rent                          $2,200

Less:

Mortgage:                  ($1,201)         
Taxes:                            (317)
Insurance:                       (75)
PMI: (103)
Maint. (.5%)                   (116)
HOA Fee:     (175)
Total Expenses          ($1,987)

Total Monthly NOI:              $213

Removing PMI puts me at monthly cash flow of about $315.  Maintenance could be slightly higher, however, the boiler was recently replaced, hot water heater is pretty new, etc. so I do not foresee very large costs in the next few years (knock on wood...).  Also, if I do it correctly, vacancy should be probably be zero as the rental market in Southie is extremely hot things are not on the market long.  

Let me know what you guys think.  Obvioulsy I understand my expenses fall below the 40%/50% rule.  

Thank you for the thoughts guys. This seems to reaffirm my gut feelings on the situation. Ultimately I want to be a buy-and-hold investor and acquire a new property every two years. I can realistically cash flow anywhere from $400-$600 a month on this property so it would be dumb to turn that down.

What areas in MA have you all been focused on?

Hi all,

I am looking for some advice related to my first property which is a condo located in South Boston, MA that I purchased a little over two years ago. My girlfriend and I currently live in the condo. The market has really appreciated and I am considering my options for the near/long term... I have two primary options I am considering:

1. Live in the condo until my girlfriend and I can find another property (preferably two units, one of which we can rent out) , make some minor updates and rent the property for the long term.

2. Live in the condo until my girlfriend and I can find another property (preferably two units, one of which we can rent out) , make some minor updates and sell the property within three years of moving in order to take advantage of exclusion of tax on capital gains for a primary residence. Hopefully use the equity to purchase my next investment or two.

Any thoughts? My gut is telling me to hold the property for the long run, take advantage of some cash flow and principle pay down and possibly use a home equity loan for additional investments in the future. Losing out on the capital gain tax break is quite significant though...

Thanks!

Great thank you Denisha and Shaun. I joined Boston Wealth Builders and Real Estate Suce$$. Will attend some meetings soon!

Hi Everyone,

I was wondering if any of you know of any investor meet-ups or events that occur within the city of Boston. I currently do not have a car and, therefore, cannot attend most of the meetings that take place in the greater Boston area. Let me know if anyone knows of any that I should check out. If not, I may start try to form my own if anyone is interested.

Thanks,

Jeff

Thanks for all of the tips and posts guys. I really look forward to getting to know all of you and joining some networking groups in the Boston area.

Thanks for the response guys. Elizabete - definitely, keep in touch! Steven - while I worked in tax I worked mostly on tax returns for high net worth individuals, trusts, and partnerships. Several of my clients had rental properties so I had some exposure in that regard.