All Forum Posts by: Robert Beardsley

had all my tenants pay for may. then got conformation that the house  i am selling is going to close earlier then expected. i a buy and hold but bought this property laste year to the month. before knowing as much as i do now. the best part is that one year later with no real money into it other then getting it rent ready im selling it for 17k more then i bought it.

i just closed on a 4 unit in south portland. iv been thinking about looking into the Auburn and L/A area but im not sold yet. cash flow can be great in those areas if done right for sure. 

Hey @Michel Bamani are do you invest in maine currently or are you looking to start?

With the amount of money you have left over every month you can pretty much do what ever you want and you wont lose. if you dont want to work extra and deal with the headaches open up a mutual fund out side your 401k and start stashing the money away eventually you will have enough in there to live off of the interest and with 7k+ it wont take you 65 years to get to that point. you could be retired and living off your interest by 40 no problem and never have dealt with tenants, evictions, contractors. honestly thats the route i would go if i was you. now if you have a passion for REI then go get you some large multis under contract. find someone with experience be the money guy and have them run the day to day operations. the one thing i wouldn't do if i was you is buy something and manage it your self, yes you make more money that away but you waste so much time. money can buy you many things but it cant buy you time, and from the looks of it money isnt an issue for you but time is an issue for everyone(we all die).

Fan Bi L/A, Maine can be a goldmine if you manage it correctly the issue is the tenants you get. it is definitely a D class area and many of the building are Z class(being sarcastic). its like most places with low point of entry a lot of work.  appreciation  in this area also is not great. when i was looking for my last property i thought about L/A but every time i brought a property up to my realtor she always came back with war zone area, Drug central area type of comments. the money is defiantly there though.

@Jeremy Wirths rents are all under market by about 100-150 and utilities are included in 2 of them. I was planning on changing that all until covid happend. I still will make some changes but maybe alittle slower. Once things cool off ill be getting the utilities off my books on one of the units(month to month lease) then next year i will up the rent to market value. One of the other units has a lease until November and at that point i will take utilities off my books for that one. That should save around 150-200 a month. There is also room for adding value by adding a storage area(currently unfinished room) and adding laundry in basement. I spoke to code enforcer as i was initially going to make the unfinshed room a 3rd bedroom to one of the uints but wasnt able to, but i could make it a storage space. So there is room for value add.

@Jeremy Wirths i have a gf who pays rent and covers few other expenses like internet and food. It is off broadway. And yes pm is included at 10% unders the expense. Forgot to put that in.

Ok everyone what are your thoughts on this purchase.

this property is in South portland maine. asking price was $600k, sell price was $582k seller paid all closing(11K) i also got $3,500 from the seller to pay for some work that was needed. i did get another 1k from seller also for some other stuff. interest rates is 2.875%. i know some dont like this idea but i am 100% leveraged as id i didn't bring a downpayment

4unit

rents are 1350,1375,1150,1300=$5,175

i will be house hacking for atleast a year as its a VA loan but for the purpase of this question i left all the units rents in the calculation

expenses are about 2100 rounded(gas,electric,capx, maintenance and water/sewer)

mortgages just under 3000 rounded up(principal, insurance and taxes)

so ill be cash flowing about 75 a month. 

this area is a high appreciating area... or it was who knows with all this covid. part of my thought process on this deal is that my loan will be getting paid down over 10k a year and even if appreciation goes slows there is some room for forced appreciation. 

what are your thoughts?

we would need more information, do you pay utilities, how old is the house, taxes, insurance and so on. if you are going to house hack i think you got your self a great deal, on paper it looks like you only get 3k off asking but if buyer is bring all closing then you really actually got it for a lot less some thing alot of people seem to miss in my opinion. i just closed on a deal in march i got seller to come down on asking price but also had him pay almost 11k in closing. that is money i can turn around in invest into the property. closing on 190k is probably around 5kish. the other way i see it is at 2.7 interest rate thats like free money. you may not have gotten a steal of a deal but hey our first deals never are. also your Cash on cash return is that high because you arnt putting much down and you arnt paying closing so yes those number probably are right. just remember that cash on cash is on what you put in. i you put in $100 and got $50 you get 50% percent looks great but 50 bucks isnt much.

with all that being said you are house hacking so the deal will be just fine.

i would tell the previous owner to evict them and then proceed with closing once that is over with. i would not want to deal with 3 eviction on during a time like this especially if i still need to do renovations. Back out from this deal ASAP...