All Forum Posts by: Scott Hollister

@Devon Webster,

Next one is March 13th from 6-8pm. 

Right Trac Financial Group

110 Main St

Manchester CT 06042

Thanks!

@Ivy Flowers

It all depends on what you're looking to do with the property? It sounds like your personal residence?

I will give you my experience back in 2012 when I knew nothing about refinishing hard wood floors, but like you I watched a few videos and I figured it out. There are typically two types of sanders used, orbital and belt. I have only used orbital because all the floors Ive refinished weren't that "rough" and were straight. The tough jobs are the old houses with sagging floor joists. Like mentioned above, belt sanders are less forgiving. 

For instance, here is the second property I sanded and refinished. 

• Cost of doing it myself: $92 dollars for sandpaper, clear coat, cleaning materials, etc. I borrowed the orbital sander from my friend. Add the rental price to this, however you will need a light sand in between coats. Therefore you will need to rent it for another day or two depending on how many coats you do. (This area was about 650 sq feet with two coats of poly.) 
• Cost of hiring it out: All the above posts seem consistent in the market. In New England it averages $1.75 to $2 per sq ft to sand and refinish. So 650 sq ft x $2 = $1,300
• Cost of not using that time looking for the next deal, priceless;)

So ask yourself how much your time is worth? Couple hundred bucks or $1,300? 

It is messy work, takes a long time to dry between coats, there is a learning curve to apply it correct, and smells really bad if you go oil based. 

My advice would be to spend your time finding the cash flowing investments, budgeting for the rehabs with you as the GC. UNLESS your focus is to only have a few properties, where you really want to be hands on and find the construction fun to do. 

Best of luck! 

@Pat Clancy born and raised in Vernon, which is the same town as Rockville. Ive been investing in Vernon since 2012 and still actively looking for multis size 20 and up. Rockville has a lot of great charm but has VERY old multis.  Feel free to reach out and I can give you some tips if you decide to go forward with the town that Gene Pitney is from!  

@Devon Webster,

I have been investing, rehabbing, and flipping in Vernon since 2012. I was born and raised here and I know the area very well, feel free to reach out anytime. We also run the monthly manchester meet-up, next one is March 13th from 6-8pm. Its a great time to educate and network with other like minded investors. 

Hope to see you there!

Hartford is a tricky area and a town that needs a lot of "help" financially. I taught in that district for a year and been visiting since I was a child. There are some good things going on in terms of Uconn, hospitals, etc. But BE very careful where you invest. 

Don't just use numbers to dictate where to invest, even though financials are important, the macro picture is often just as important when it comes to investing in a town. Often times you can only find D and C- rentals in Hartford, the numbers look amazing, but make sure to weigh risk vs. reward of "dealing" with that tenant class. 

Best of luck!

@Luke Monahan what size multifamily are you referring to? And what Towns? 

I am active in Tolland County and know the area real well, including South Windsor. In terms of rehab/flips on MLS, almost every single house that is listed ends up in a highest and best situation. Most people are overpaying IMO. I represent multiple flippers as an agent now and some do their own work so they can purchase higher then someone who hires out the work. For instance, there was a house in Ellington we just bid on for them. They were 5 cash buyers WAY above the price that I thought was fair. (I also air on the conservative side for ARV)

We also have trouble with foundations it some areas.

Also, it is very hard to find a "good" wholesaler. What I mean is that someone who can find such a deep discount and still sell it with some meat on the bones. I have met 1 in the last 3 years at a few different BP meetups, CT REI, etc. that I thought put the consistent direct mail marketing campaign together and brought consistent deals.

What are you looking to buy? Have you bought anything before? Do you have a decent income? 

@Michael Doherty,

1. Good. Look for creative ways to get rentals, often people look to flipping for capital. But there are creative ways to get rentals without flipping. Ive done both, but the BRRRR has done really well for me. Just as long as you can understand the financing on the backside, its not as easy as its led to be.
2. You don't really have enough equity to pull and your rate is good. I say that because my loan fees for the refi were around 4k which I rolled into the refi. In order for you to do a cash out refi into a conventional you would need to be at 80% LTV. If you had more equity, were looking to hold long term, and get rid of PMI I might be swayed towards the refi.

I was in the same position as you, needing capital for the next project. I had an FHA, found a local bank to give me a HELOC up to 100% (4-7% interest because its higher LTV) and used Hard Money at 12% IO to purchase an REO with the BRRRR strategy. I went conventional 30 year fixed and got to keep the asset while pulling out some tax free cash.

@Michael Doherty,

1. What are your goals? Buy and hold? Flip? Etc.
2. What is current payoff and appraised value? Rate and Term? Income?

Hello BP,

Just wondering if anyone else is attending the Middle-Market Multifamily Forum in New York this week? 

I am not hosting the IMN, just looking to see if anyone wants to do a BP meetup after the event? 

https://www.imn.org/real-estate/conference/Middle-Market-Multifamily-Forum-Northeast-2018/

Best of success,

Scott.

Like @Craig Bellot said, find a way to bill this into the monthly rent. Especially when you have multis. On my singles I still hire it out. Tenants are not qualified to handle HVAC, this is a bad habit from the previous property manager. 

One way is to find the cost to replace filter, divide it by 12 months, add that on top of your annual rent increase. If the tenants are concerned just explain to them that you want to keep the furnaces running properly and efficiently so you can save them money on their oil costs. 

Plus when you manage 40 units, it is easier to hire the specialized trades out, even something as easy as replacing a filter. Also ask your oil provider to see if they offer a filter change before they fill the tank for additional cost? That way you're not paying your HVAC tech an hourly rate OR have it done when you schedule the annual furnace cleaning.