All Forum Posts by: Matt Lefebvre

Welcome to BiggerPockets @Ezra Hodgson and congratulations on obtaining your real estate license here in New Hampshire!  Getting started with investments is always the scariest and sometimes most challenging first step.  Ultimately what you start with depends on where you want to end up and what you're able to do.  If you are renting right now and looking for a way to decrease your living expenses, you might want to consider owner-occupying a small multifamily and putting low money down (3.5% minimum typically).  If you have a fairly solid job and good savings, you might want to consider investing in a small multifamily that you don't live in and getting the basics of investing down through that.  If you want to take on a more active role in your investing and have some skills or some good money, you could consider flipping (which is becoming more and more difficult in NH with the shortage of inventory).  

What are your goals with your first deal?  That defines what direction to start and what type of properties to be looking at.  

Best of luck, and feel free to reach out if you have questions along the way!  

@Jim Growfer there is no need to "estimate" your mortgage payment at a rate of 7%.  Mortgages are something you can calculate down to a couple dollars off a month in one direction or another within a matter of minutes.  Take a quick google search of "mortgage calculator" and you'll be able to crunch the exact numbers on any mortgage within two minutes by filling out the appropriate information that accounts for all of the variables (different down payment scenarios, amortization timelines, etc.)

You can even find an amortization calculator online and build it into an excel spreadsheet so you can automatically plug in those numbers when you run analyses on potential properties.  

If you want to determine the debt coverage ratio, its simply diving the total net operating income by your debt service (principal + interest... NOT including taxes & insurance).  

I can't take credit for it personally @Marielle Walter!  I just work for the people that made that plan a reality.  I've assisted to some degree with several of their projects but haven't spearheaded them.  Would still be very happy to show you the buildings when you're in town though.   

Hey @Marielle Walter I think the company I work for, Elm Grove, is the one you're thinking of here in Manchester, NH :) .  We renovated an old drug/rehab facility and turned it into 32 high-end micro-units.  Smallest unit is 210 SF and the largest is 450 SF.  One of the (if not the highest) highest dollar-per-SF rent in the city.  Starting at $925/mo and going up from there.  Initial lease-up time was about 45 days and we consistently maintain a full building.  

We're actually working on an additional project in Concord, NH with 12 "loft-style" apartments.  The apartments have approximately 16 foot ceilings so all of the bedrooms are located on a loft above the main living area.  Check out our website (in my bio) if you want to see some of the pictures or keep posted on how the construction is going.  

@Jill Thomas I have two six units coming up for sale in Manchester, NH , a six unit and seven unit for sale in Nashua, NH, and a possible four unit and six unit coming up for sale in Concord, NH ... shoot me a message if you have any interest.  

30 CONCORD STREET, NASHUA, NH 03064 - 6 UNIT - FOR SALE - $599,999

Located in the North End of Nashua, this gorgeous Victorian investment property is the gem of any portfolio. Set on a flat grassy lot over a third of an acre, this property is moments away from Greeley Park and is in one of Nashua's most premiere neighborhoods. This six unit investment property is comprised of five apartments and one permitted office which was previously occupied by the owner's business. Gross rents for all of the apartments is $63,000 annually, plus the projected rent of $500/mo for the office suite brings the total gross potential rent to $69,000! With almost all utilities paid by the tenants and minimal expenses, this building has the potential to net over $52,000 annually! Move your business here or rent out the office for additional income, the choice is yours. For those looking for a turnkey addition to any portfolio, this property everything you could ask for.

FINANCIALS:

Gross Annual Income: $69,000

Taxes:  $10,726

Insurance: $2,791

Heat: $800

Electricity: $1,000

Water/Sewer: $1,227

Operating Expenses: $16,544

Net Income: $52,456

Projected Cap Rate: 8.7%

CONTACT:

Elm Grove Realty

Matthew Lefebvre

Office: 603-505-4900 - Cell: 603-554-2309

[email protected]

14-16 LOCK STREET, NASHUA, NH 03064 - 7 UNIT MULTIFAMILY - $699,999

Located in the North End of Nashua, this well-built, brick seven-unit investment property is a great addition to any portfolio. Less than a block away from Main Street and just north of the Nashua River, this property is a part of the growing downtown. With gross rents in excess of $84,000 annually, very stable tenants, and low expenses, this property is a huge money maker. Tenants pay their own electric and some tenants pay their own heat and hot water, which provides some opportunity to further reduce expenses. Ten parking spaces are leased from abutting property for a total of $200/mo. If you're looking for a stable investment property, then look no further than this great addition to any rental portfolio.

FINANCIALS:

Gross Annual Income:  $84,456

Taxes:  $10,303

Insurance:  $2,791

Heat:  $3,500

Electricity:  $2,800

Water/Sewer:  $1,200

Parking:  $2,175

Operating Expenses:  $22,769

Net Income:  $61,687

Projected Cap Rate:  8.8% 

CONTACT:

Elm Grove Realty

Matthew Lefebvre

Office:  603-505-4900 - Cell:  603-554-2309

[email protected]

@James G. I recently had a commercial appraisal done by local appraisers on a six unit (three apartments, three commercial) with quotes come in for $2,000 and $3,000 booking three weeks from the quote date.  I've also had a six unit apartment building where a bank waived a commercial appraisal and had a cheaper commercial valuation done for a cost around $1,000 (due to a fairly small loan amount of just under $250K).  At least in my market that's not terribly far off for commercial appraisals.  I don't know if that's the case everywhere.  

EXCLUSIVE OFFERING:  76 UNITS IN PITTSFIELD, NH - $46K/UNIT - 14.2% PROJECTED CAP RATE

Elm Grove Realty is please to present The Pittsfield Portfolio: A once-in-a-lifetime opportunity to acquire a large rental portfolio in Pittsfield, NH. This portfolio includes 76 units across 12 buildings with 74 apartments, one restaurant, and one office (currently used as the management office). Having been professionally managed over the duration of ownership, this portfolio has a strong cash flow, a steady rental history, and many upgraded buildings and units. There is a blend of studio, one-bedroom, two-bedroom, and three-bedroom apartments, providing for a balanced availability of apartments. With an aggressive pricing of less than $46,000 per unit, this portfolio is being offered at a strong 14.2% cap rate. Please private message for a copy of marketing package.  

ASKING PRICE:  $3,495,000

PRICE PER UNIT:  $45,987

NUMBER OF UNITS:  76

TOTAL SQUARE FOOTAGE:  60,833 SF

NUMBER OF BUILDINGS:  12

ESTIMATED CAP RATE: 14.2%

Presented exclusively by:

Matthew Lefebvre - Elm Grove Realty

[email protected]

M. 603-554-2309  |  O. 603-505-4900

KEYWORDS: nh, new hampshire, ma, massachusetts, me, maine, ct, connecticut, ri, rhode island, vt, vermont, ny, new york, nj, new jersey, boston, manchester, concord, pittsfield, rochester

172 BROOK STREET - FIVE UNIT INVESTMENT PROPERTY - LOCATED IN MANCHESTER'S NORTH END - $399,700

Located in Manchester's prestigious North End, this five unit investment property is a great addition to any portfolio. Located right next to parks, blocks from the Currier Art Museum, and with convenient access to highways. This building has a mix of 4 two-bedroom apartments and 1 three-bedroom apartment with several long term tenants and the potential to increase rents. While the building is stable and produces solid income, there remains opportunities to increase cash flow by separating the heating to each apartment or bringing rents closer to market rate. Tenants currently pay for their own electric and in some units pay for their own heat and hot water.  Coin operated laundry is already on-site and provides an additional source of revenue. This property has been professionally managed and maintained for years, with many updates and improvements having been done over the duration of ownership.

Keywords: nh, new hampshire, manchester