All Forum Posts by: Stephen Scire

I'm questioning a purchase on a 3 unit building in southern Maine , east...only coiuple miles from ocean. Nice area, great school system... the building in on a main road , nice exposure...based on a 25K reduction in offer price ( 4% ) , turning the heat/hot water over to the tenants on 2 of the units ( 3rd unit pays heat/hot water)  &  raising two of the tenants' rents up by $50 each ( 4% ) ....

I can get a 9.5 ROI , cash flow 0f $989/month , 5 year annualized return @ 19% , with 2% appreciation & mortgage pay down... get equity of @ 250K after 5 years ( 43% of cost base of building...

The value  ( I believe ) is that its a commercial zoned building that can always be converted back or have a selling value 'down the road' for interested buyers for commercial at a later time....in the mean time , the residential purpose suits it just fine.

Your thoughts are very much valued

Thanks, Steve  

Last year we bought 2 cottages on 1 parcel of land...  neither are winterized & are seasonal since they are located in Maine by the ocean. They are located in a very convenient vacation spot for beach goers. The only utility shared is the water & the land. Separate cable/internet & electric 

Here is my question...would it be wise to condo the properties , keep 1 unit and sell off the other....applying proceeds to my mortgage.

More Background info if needed...

Last year we bought 2 cottages on 1 parcel of land...  neither are winterized & are seasonal since they are located in Maine by the ocean. They are located in a very convenient vacation spot for beach goers. The only utility shared is the water & the land. Separate cable/internet & electric 

Here is my question...would it be wise to condo the properties , keep 1 unit and sell off the other....applying proceeds to my mortgage.

Background info...

Colin, Awesome info all around, yes I do drive bys...was even hoping to see someone come out one of these days...older or younger ect...

Yes, Id definitely need to have all of my ducks in a row ... and expect them to get all crazy. 

Thank you very much Colin

Yes I Agree with everything, It's absolutely a high risk deal...and I'd. certainly factor in for the worst & need quick legal action and financing. I'm going where no one else wants to go, maybe that's the attraction.

Im not going straight into it, doing plenty of research regarding liens ect...

Thank you Jarrod !

Appreciate the info and cautions 

Lien & Mike, thank you very much for the feedback...obviously very risky at any level...I always appreciate any thoughts regarding different approaches to buying real estate. 

Hello all, very interesting property, that i hope others have tackled a similar situation. There is a duplex just outside the Boston area, Ive been following this property for a few weeks, it has very erratic pricing over the last few years. post rehab value is about 575-595K...It clearly needs works. Just got info, after being in foreclosure for some time , was reduced to almost 100K below market value, I believe can go much lower... but here is the good part, the owner resides in the property and refuses to allow access in the home.

What are your experiences of buying site unseen. Would you try to contact owner by a written letter...maybe trying to solve a problem they are having.

If worth pursuing, I was even thinking of offering to help relocate by paying for moving expenses and/or first 2/3 months rent.

Has anyone had this come across them and to what extent of repairs or damages have others incurred.

I know some may say...move on to an easier property, but obviously many are staying very clear of this & I take it as a challenge if of value.

Thank you for your time & expertise.

Steve

Bryce....thank you so much for your feedback .....In your experience did you feel that Evolve priced your listing for the best return...

Also, do I still reserve the right to rent to return vacationers AFTER our commitment to Evolve.

Great to hear about your love for the area,  maybe we'll be lucky enough to meet up this summer from a quick drink or bite to eat .

Steve

Hello all,

We just listed a vacation rental on Evolve & was anticipating a low rental price due to their method of first building market share & then gradually raising rental prices slowly.

Our property is steps from the beach in Wells ,Me.

Our listings just launched ( 2 cottages on 1 parcel of land ) & we were very pleased with the price but are also very wary it might squeeze out potential renters. ( i believe we gave prior renters sticker-shock when we told them it was now available to rent online.

Is it possible that they would overprice a vacation rental....i understand they use n algorithm but was wondering if there are other VRBO owners that can tell me if i have anything to worry about.

Thanks , Steve

Hello fellow BP junkies, 

I have placed an offer on a 5 unit, hoping my #s are correct and a suitable investment.

there are (3) 1 bdrm  & (2) 2 bdrm

Offer/Purchase price=565k, cash out= 141k, financing =424k

CURRENT SITUATION...

Note: in the 1771 expense , 971 is taxes, ins, water, utilities (mandatory/immediate expenses)

                                                 800 is for future repairs, vacancy, property upkeep

,

gross, 4,748 - 1771 (expenses) -  2147 (debt) = 830    This comes out to a 7 % cash on cash return, with a cash flow of $166/door

* I plan on upgrading the 2 - 2 bdrm to bring them up to market price

keep in mind … 1 bdrm go for 1000-1100 ….. 2 bdrm go for 1300-1500

the 2 bdrm are the laggers.

PROPOSED SITUATION

with the upgrades to the (2)  2bdrm  units & $50 increase in the (3) 1 bdrm  units ….. (putting another 35k into it for upgrades)

gross up to 5950 =  now a 13% cash on cash with a cash flow of  $400 / door

I still have oppurtunities of building & offering outside storage units ( $25 / month)

And there is a need for washer /dryer conveniences which they don't have now , whether in units or in basement.

Am I going down the right road ? 

I have 5 units  , with 2 buildings now but its different, they're very close to home, this is 30 minutes away, not too bad, but a bit of apprehension on my part , even though I just placed the offer, LOL.

I really respect your thoughts and figures on this deal.