All Forum Posts by: Joshua Tessier

Boy is that an understatement!  I learned so much. I could have taken a course and paid $20k to teach me some things and I wouldn't have learned nearly as much as I have.  Trust me I still have allot to learn!

The final number are sold in my book!

Purchase Price $241,000

Rehab Costs  $296,400

Appraisal: 

Sales $560,000

Income Approach $666,188

Cost Approach $602,005 

 I do feel the sales approach is super low for this market since everything has been rehabbed it will give me a big chunk of my money back.  In the end I'll never do a Lead project like this with the City of Manchester again that was a horrible move and the base of my learnings.  In the end it's done and now it's time to recoupe and move on.

Your profile says you live in Rochester, NY is that your target market?  You can buy a dump two family in Rochester for well under $60K.  That's a mortgage payment of like $500 a month if someone will lend on it. Rent one side out to friends for $400 and get a roomate for $200 and your living for free and banking $100.  Use your savings from not paying rent to buy another property within the next few years and your on a role.  Lots of people would kill to be in markets where you could pick houses up that cheap!  In my market a dump two family is 4X that.

These no difference between your generations and others.  The numbers are the best they will be for years to come.  The question is how much are you willing to sacrifice to make this work for you.  Personally I have lived inside without heat or plumbing for months. floorings plaint insulations those were things I bought weekly as I could afford them.  This business isn't for the faint of heart and it's not a get rich quick scheme.  It takes a lot of hard work and a lot of money but overtime is very forgiving!  It kind of like fight club except you get to talk about it.

I am in a similar boat.  I want to transition from working in Engineering to full time with real estate. I need the engineering salary to keep pace with my current renovations on the properties I already own.  In order to keep gowning I need that W2 and 2 years of employment in the field for another year or two. Finical freedom is going closer and closer so my question is more how do the two handle agents buying properties for themselves and commission splits.  

@Harry Arnold well clearly you need to buy a pro membership and then you’d understand lol. The podcasts are filled with adds and it seems like I skip more than I listen to these days. The constant come to BP Con, buy our best selling books, and use the pro calculator because we are sure you can’t handle building a simple spreadsheet without screwing it up is getting annoying for sure!

@Brandon Turner congratulations you have certainly left some big shoes to be filled! Enjoy your time and please do check back in.  We have all enjoyed following along on your journey.  Now go enjoy those kids!

Change the deadbolt with a smart lock and secure the property immediately! Your lease/contract is not valid as the conditions of the lease have not been met.  You don't want them moving in.  In NH you cannot evict folk's for non payment of rent while the state has Covid relief funds. If the tenant claims they have been impacted in anyway by covid youll be stuck waiting on the states funds which take forever to pay out!  Make it simple and change the deadbolt to a nest/yale smart lock, spend the $280 and sell it as an upgrade to the tenant when they pay the security deposit and 1st month's rent.  When they go to move in and can't get in you simply say oh I don't have your rent and security deposit it's no big deal but you'll need to pay those first before you can move in i'm so sorry you missed that in the lease.  Apologize for your mistake in not pointing that out when you gave them the keys and simply say lets get that paid and well set up your code immediately.

Anyone notice the realtors are saying you need a realtor and the non realtors are saying you can do it on your own, wonder why?

I recently helped a close friend close an off market deal I brought to them.  In the end the experience you will gain from closing a deal without representation is priceless!  You'll get first hand experience that many folk's would pay thousands for via a mentorship class.  You'll get to ask every silly question you have ever had and you'll have a group of Pro's all willing to answer and help.  You'll get to make connections that will last with people you need to know and can call over and over for advice on your next deal.  Mortgage Brokers, Lenders, title companies they will all be calling you and working directly with you to see this deal closed! How cool is that!  The craziest part is they get paid when the deal closes so you get direct access to a super willing person to help through this process AMAZING.  When my friend closed they asked me so which part of that does the realtor do.  The answer was no they don't generate the mortgage nope they don't research the deed or title, and nope they don't prepare the closing documents so what part do they do ya I'm not sure why you need them either. 

I have 4 units in one property that are maybe 200 SQ/FT each.  They have a very small but efficient kitchen layout. with everything you need and space for a bed. They all have a small bathroom and after that there's not much else.  These are by far my most profitable units.  I use one as a shorter term rentals and its often generated over $2,000 a month.  These units typically rent to visiting professionals, students and everything in between.  It's crazy as often times we will get a cancelation and then it books again and Airbnb charges everyone so you get paid twice.  I do not agree with there policies but it's how Airbnb works.  They require more work than traditional and are a giant pain in the *** as it seems all short term rentals are but the money it generates has allowed me to outsource a lot off my plate.  In the end I am adding more with the goal of turning all four into short term rentals by spring.

The best decision I ever made was outsourcing the @Miranda M Vinson I dreaded the constant communications and cleanings and people with stupid requests and reasonings. Outsourcing to her has made life with STR amazing!

Manchester is very pocketed. Rent's are jumping big time and it's helping to get some of the unwanted folk's out.  The $800 2 bedroom is a thing of the past and it's now $1500. The biggest problems I see are alley way's and parking.  When looking for a property you want to think about who's dumping couch's and mattresses illegally in the alley. Can you stop it?  Most landlords I know can't and a lot of us are constantly battling with a city who loves to send out notices to fine us for other people dumping crap on our properties. They know we are the ones who clean it up so it keeps happening!  I know of three landlords in this position right now. 

Love it or now but rail could finally be a possibility for Manchester again with Biden passing the 1.2 Trillion in Infrastructure spending.  NH is a swing state so having a big example of something like a rail station would be a big win for a politician to stand on and say look what I did for you. so look for proximity to the rail station what might not be desirable today could be VERY desirable if you can walk across the bridge and get to a rail station quickly!