All Forum Posts by: George Paiva

Yep you been in this business long enough you kind of develop a 6th sense. I actually hold my gut to higher standards. In fact I think after some of my recent experiences gut will over rule now how to make that quantifiable would be a whole other issue in case I get audited by housing or something.

I can't count how many times I had tenants 3x income, good credit >550, no convictions, no evictions but one life event it all goes to the crapper. The psychology of it all really needs to be studied. Question, "How stable mentally is this tenant, do I have to baby sit this one"

I stopped listening or already turned off the moment they start with the "stories".

In CT we can't discriminate with Source of Income. I'd steer away from putting any of those key words in as it just sets you up for anything. Just rather list the specs of the apartment and the rent your asking. With proper pictures and descriptions I doubt a D class tenant will seek out A class unit.

I like the whole idea of this and maybe it may become actionable with some tenants but to be honest the majority will just set it aside and think nothing of it till their pipes burst. I've been back and forth with many tenants regarding plumbing clogs and burst pipes and at the end of the day you will have some that care and the others don't. Part of it is just laziness and the other is what @Michaela G. had mentioned.

I think if you have a property with known freezing/bursts or plumbing on outside walls a more proactive approach needs to be taken. For instance wrapping all piping with insulation and if you are in the northern states going the next step with heating tape and thermostat.

Heating Tape example - http://www.homedepot.com/p/Frost-King-6-ft-Electric-Water-Pipe-Heat-Cable-HC6/202262328

Thermocube - http://www.homedepot.com/p/Cadet-Freezebuster-FB3-TC3-Thermocube-Ivory-In-Line-Limiting-Plug-In-Freeze-Protection-Thermostat-FB3/202849705

My regional does does WSJ prime + 2.75% for 10yrs with amor @ 20yr

If you're dealing with C- property or low income tenants usually all electric is the way to go. Many will not pay the extra utility for Gas. Some may even complain to the housing dept because of this only to find out they didn't pay or turn on the gas. Electric is obviously a short term benefit vs a long term one. The best is when housing calls to "chew" me out about a renter only to respond with "what jane doe didn't pay her electric bill" LOL... know your market and provide for that.

Craigslist, Postlets, Rentlinx are a few.

I am in Connecticut which is basically like Massachusetts in regards for finding a cash flow property. What works for me is the 50% rule coupled with a GRM multiple for valuation. I generally figure out Gross Income and Operating income then use a GRM of 6 or 8 to get a sense of value. In the end you need to vet out all income and expenses and find the deal that gives you the most return.

In my opinion turnkey multifamily in Connecticut will not cashflow. Need to look at sellers motivation and condition of property and how you can squeeze more value to get market rents and run your analysis on that. We are experiencing a net loss of "good" population and employment but people have to live somewhere. So I plan on higher vacancies to fill in unit with higher quality tenants and expect to put some sweat equity into each unit.

Thats how it is here in CT. Your mileage may vary....

Are we talking Multifamily or just one house??? Not worth my efforts for $85 a month in my opinion.

WOW, I would love to have vacancies filled in 1-2 weeks but I would also wonder if they are either breaking their current leases or just leave their previous landlord in the dark. I am always wary of the prospective tenant coming in and needing the apartment ASAP with cash in hand.

Here in Connecticut, in my C location properties its been averaging about 3 months. There are a lot of unqualified/undesirable tenants in this market. I typically spend the first month doing a refresh then market hard for a month before I finally have a qualified tenant then usually have them in the following month to placate their prior landlord. Like @Vanessa Brown mentioned, you don't want a bad reputation.

Now my B/C locations typically takes about 2-3weeks of postlets and craigslist ads then lock in a tenant for the following month.

In my refreshes I make sure all HVAC, Electrical and Plumbing has been reviewed by a professional. Ensure all flooring is in good shape as well as appliances. Turnovers always receives a fresh coat of paint as well. In my market if you don't do these things expect to have a lot of tire kickers and unqualified/undesirable prospects knocking on your door.

I second @Marc Ramsay advice as well.

BTW Marc I hoped to have a great video of my last eviction like you had by having stuff thrown down the stairs but unfortunately there only was a couch and a entertainment center left by the tenant as they skipped town in the middle of the night. Also damn marshal didn't call me when they got there so I didn't get time to get a video going. Oh well next time...

Congrats on getting your building up and running. Many fail to realize how you have to take a long term view into buy and holds. I commend you for aproaching it in a phased manner.