All Forum Posts by: John Bower

I'm looking to do a cash out refi on my current triplex for a down payment on another triplex. I have run all my numbers on the new triplex and I can get a 17.4% ROI and it will cash flow $663 per month. Great numbers. I have called about 5 banks so far. I just got off the phone with a local portfolio lender a few minutes ago. Based on my credit score and debt to income ratio they do not believe they would be able to refinance my current 3 unit home. I am too much of a risk. This is the same thing I've been hearing from the other banks. I've also talked to a company about fixing my credit score but I don't have any small accounts that I can pay off to raise my score. Does anyone have any ideas of how I can creatively finance this new triplex?

Hello bigger pockets community. My name is John Bower and I'm a life long New Yorker (upstate). I've worked in all types of property management for the last 10+ years ( has it really been that long). Most of my experience has been in managing large 100+ unit apartment communities. I also have a lot of experience with HUD subsidized complexes. About a year and a half ago, I bought my first tri-plex that I am house hacking,renovating and renting/managing. I've recently decided that although I love my job in property management, I want to start working for myself rather than work as a faceless cog in a large company that I have no ownership in. I am looking to start my own company and start acquiring rental properties in a buy and hold strategy. I would like to find some investors/partners to work with in the Albany, Schenectady, Troy area who have a similar vision as myself. Also, I hope to find mentors who have experience in the buying process who can help me learn the ins and outs of that part of the industry. I wish I had found bigger pockets years ago. This is such a great community so far and the knowledge here is invaluable. -John B

Having worked in Federal Subsidized Housing for many years,  we have actually been seeing the opposite of this.  The federal government is mandating that owners/management companies of subsidized housing be more lenient when it comes to applicants with criminal records.  Basically,  no matter what a person did prison time for,  so long as it wasn't distribution of drugs or a sex offense, then owners/management companies need to consider those people for housing.  If a person has served time then they are allowed to live in a federal apartment.  This stems from the supreme court ruling on disparate impact.  The Supreme Court sees that by baring an individual with a felony from housing,  it actually is a form of unintentional discrimination. How does this affect a normal home owner looking to rent out a house/apartment? I'm not a lawyer, but in theory,  if you bar someone from your property with a criminal record,  they could file a fair housing complaint with the state which could open up an investigation and lead to a fine which is usually about 10K. 

This is such an interesting subject.

If you allow pets,  you should also create a pet policy for your residents that outline the cleanup/damage expectations.  If they have violated their lease,  then definitely send them a lease violation letter letting them know they have a certain amount of time to clean up or they will be charged for you to do it.  After being charged once for cleanup,  I would hope they would be more on top of their pets bathroom issues.

This is a terrible situation.  If you have a really good relationship with your attorney,  you could see if they could take your case on pro bono.  If not,  maybe they will allow you to do a payment plan.  Hopefully it won't come to a jury trial.  I've dealt with a lot of evictions with low-income tenants where they have had legal aid get involved and it has always been a massive headache.  There really should be a free law organization that helps out landlords with evicting problem tenants. 

I think a drop box on the property is a really good idea.  Also,  with you being on the property around the 1st of each month,  it allows you the time to quickly check the property and make sure things are okay and that there aren't any major repairs that are needed. Also, I think if the tenants know that the "property manager" (I say property manager because I don't normally like my tenants knowing that I am the owner) is going to be on site, they are more likely to treat the building more kindly.

I agree on the idea of re-plumbing and re-wiring.  I would especially look at the type of pipes used in the plumbing.  Galvanized steel, if used, could cause you a big headache in the long run due to rusting/corrosion issues.  If the last owners replaced areas of piping with modern plastic,  then that might mean that there is a larger issue at hand.