All Forum Posts by: Michael Archard

Michael Archard has started 7 posts and replied 27 times.

The path I took out of college got me out of my student loans and put me in good shape to do more real estate deals. I house hacked a 2-family with a 3.5% money down FHA owner-occupy loan and covered my mortgage, reserves and some left over. I rented 3 bedroom's in my 4 bed unit and rented the entire other unit. It's all about being fair on the rents and doing a very good job screening tenants. Framingham has a strong rental market but with very few houses on the market right now it may take a while to find something that works with your budget. Lease options are likely better after you have some deals under your belt in my opinion. Good luck with your journey and feel free to reach out if you have any specific questions.

1 Vote

Boston, Massachusetts

Originally posted by @Eric Johnson:

Michael, a total project / investment summary would be helpful as they know exactly what happened and how their money was used. Including before and after photos also a good idea. Give them a bottom line return number, so they know exactly they made "x"% on their money. When they talk to other people they can say, oh yeah I made a "x"% return working with blah blah....

Thanks, Eric! I forgot to mention that my investors were all fixed rates loans so everyone understands their return. I do like the idea of an project/investment summary either way.

0 Votes

Hey BP,

I just completed a very successful flip using private investors to fund the purchase price and some of the rehab. This is the first time using private money (friends and family) so I wanted to reach out to see what others do when paying back their investors. I am planning to do a short write up to summarize the investment (forecast vs actuals) and provide some before and after photos. I want to do more than just cut a check and thank them.

Any thoughtful/creative ideas are welcomed. Thanks in advance.

0 Votes

@Joe Silva

Thanks Joe. This is my exact feeling as well. I’m going to try the “all included” approach for a week or so and change to the market rate plus fixed utilities if I’m not getting enough applicants.

0 Votes

@Jaquetta Turner

I agree! I’m leaning towards the “free utilities” option but I’ll have to make sure I keep a close eye on things.

0 Votes

@Michael Noto

Michael my competition does not include utilities which is why I want to make sure I’m playing myself strategically in the market.

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@David Robinson

David as stated above the utilities are unmetered and covered by the HOA so it's effectively an "unlimited" situation. Coincidentally enough I did mine Bitcoin when I lived there for that very reason!

2 Votes

Originally posted by @Greg Weik:

As others have said, do not have your tenant pay HOA dues (who is the Realtor who suggested this?!)

Market rent is pretty straightforward with all utilities included. Most websites (Zillow, Facebook Marketplace) have provisions for listing utilities included. I'd check Zillow for listings in your building since the $525 covers them. Ultimately, it's worth exactly what someone will pay for it right? Closely track inquiries and you'll know if you've overshot. Don't wait more than a week to drop the price if it's quiet out there.

A word of caution, however, is to never say "all utilities" are included. You always want to specify that, for example, trash concierge service is not included :)

Here's how we setup the utility portion of every description paragraph for our listings:

INCLUDED UTILITIES: Trash Removal.

TENANT PAID UTILITIES: All other utilities paid by tenant.

Thanks, Greg.

0 Votes

Originally posted by @Account Closed:

One way to get additional income is to allow pets (if your HOA allows them) and charge a pet fee (if allowed by your laws) and higher deposit.

I managed a 25 unit building with all utilities included: electric/gas/water/sewer/garbage. My experience is that most tenants are able to do that math if they have been renters before, and know if the overall rent plus whatever utilities you are including - is a good price or not.

I agree that if your phone is ringing off the hook, you're definitely in the ball park. If it's really ringing off the hook, you might be too cheap.

Thanks, Sue. Unfortunately pets aren't allowed but I agree! I'm hoping applicants see the value either way.

0 Votes

Originally posted by @Joe Splitrock:

@Michael Archard I am assuming your competition is apartments. A condo is basically an apartment unit that you own. It is fairly common in apartments to have head, garbage and water paid. That means often the only utilities in an apartment are electricity and internet. Other amenities like gym, pool, etc. are just included at apartments. Make sure your $200 premium is really representative of apartment utility costs. I would list it for $2100 and show the utilities as a fixed rate $200. That way you are not lost in filters. Market the fixed rate as an advantage. People like the idea of not having variable costs. Just make sure that $200 is competitive. If an apartment budget for utilities is $120, then you are overpriced by $80.

Thanks, Joe. Most apartments in my area do not include utilities. But I agree with your thoughts on marketing the fixed rate utility. I renovated with higher end features like recessed lighting throughout, steam shower and heated tile in both bathrooms so I have a lot to upsell with the fixed utility cost. Thanks again.

0 Votes

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All Forum Posts by: Michael Archard

Michael Archard has started 7 posts and replied 27 times.

Post: Thoughts on the Framingham, Massachusetts market

Post: Seeking advice when paying back private investors

Post: Seeking advice when paying back private investors

Post: How to Market Rental with Utilities Included

Post: How to Market Rental with Utilities Included

Post: How to Market Rental with Utilities Included

Post: How to Market Rental with Utilities Included

Post: How to Market Rental with Utilities Included

Post: How to Market Rental with Utilities Included

Post: How to Market Rental with Utilities Included