All Forum Posts by: Tyler Munroe

@Dan H. Good points. I think new builds don't really work from an ROI standpoint, but if you can find properties that have easy ADU conversions then the value might be there.

I'm in MA and we just made ADUs legal by right, so I'm looking into the best ways to add value using them. A lot of our housing stock here has finished basements or in-law suites, so with something like that you can generate significant rental income for an inexpensive conversion.

Hi Myles,

I found myself managing about 20 rentals through my brokerage at one point. They were referrals and the business started to grow simply because I had a competent team that was responsive and looked out for the owners' best interests. I think there's a pretty low bar for competency in the management business because it's not glamorous and can be a grind. If you can come in and operate effectively I think you'll find success rather quickly due to that.

BTW - for a property management platform I would highly recommend Buildium. They're coincidentally based in Boston, too.

Good luck!

Thanks for putting this together Mike! I plan on being there.

Hi @Sathya Priya Sampathkumar! If you're just getting started, stay local. I see you're in the Boston area, so if you're looking for cash flowing markets I'd recommend Lowell, Fitchburg, Leominster, just to name a few. Basically, the further you get away from the city the more potential for cashflow, but you're also dealing with a different tenant base that may be tougher to manage. I'd also suggest self-managing your first property to maximize cash flow and learn by doing for any future investments.

From what I've heard, CA is very ADU friendly so check with your city on what's allowed. Great idea from @Henry T. to live in the ADU if you can and rent the house. If not, in CA you'd still get great rent on the ADU so I'd absolutely consider it.

@Griffin Malcolm Interesting stuff! Would be great to reconfigure the lot lines on the two additional parcels so they'd both meet the minimum to build. I just completed a small subdivision myself - just a word of advice that if you do sell any of these you'll need a release of mortgage from your current lender to do so. Might want to start that conversation with the lender if this looks like a possibility. Good luck!

@Matt Wan In the Boston area the inventory is so tight I'm not even sure there's "deals" in the off season. I think you'll just generally have less competition, so your chances of landing a property are higher, but I'm not seeing any bargains due to seasonality like there used to be. If you do land one in the off season, build in 2x as much vacancy as you think or about 20% less rent than market for the first year. You may also have to pay a broker to rent it, when usually the tenants cover that during peak rental season (May-July for 9/1 leases).

Good thing is once it's rented you should almost never have vacancy if you're mindful of re-listing it in a timely fashion. I've owned property in the Boston area since 2013 and have never had a vacancy aside from when I was doing renovations.

What @Nathan Gesner said AND:

You're in a great market! Population and economic growth, strong tourism, proximity to other New England cities. It's pricey and competitive, but stay in your own backyard, consistently look for deals, and you'll find a great asset. Consider different strategies like mid and short term rentals as I believe the Portland area would allow for success in both (although I have heard Portland proper is tough on STRs).

Best of luck!

Definitely try to get pre-approved through a lender so you know how much property you can purchase. This price point will determine what markets you can invest in, what type of projects you can pursue, or if you want to hold off completely and save more. Honestly, I would start here and THEN start networking, reading, researching, etc. If you know what you're financially capable of then you can pare down your research to those markets/projects and accelerate your investing. Best of luck with it!

Congrats Abby! Property management is not for the faint of heart, so glad to see you're enjoying it and thriving. I feel like it's a space where great operators can really clean up, since the bar is set really low, in my experience at least. Boston should be a great area to expand as there is plenty of investor-owned rental property. Good luck in the future!