All Forum Posts by: Michael Sherwood

welcome to BP Mark! I am a local guy in the area as well!

Guys,

I have done many deals but this one I am not exactly sure how to get it to work out for everyone.

I know someone who bought a property for 115k originally . The market has turned and they can't get that much now.  The mortgage is assumable it ends in 2022 and has a rate of 6.7% home equity  with a PI of 600 a month.  The current outstanding balance is 38,500

The guy wants to cash out what are your suggestions?

the total rents are 1,4000 per month (dplx) 

taxes are 3,700 a year. 

water 70 a month 

maint 75 per month

insurance 75 a month 

the neighborhood is good and the tenant base is very stable ( B level tenants)

what suggestions would you have or additional information needed?

I actually one in Buffalo, we have one next week if interested.

@Larry Turowski 

@Shannon Sadik 

@Account Closed 

he owns properties in Canada and also invests in Buffalo.

Mike

@Engelo Rumora @Jonathan Sowinski 

I believe there are folks out there that are not quality property managers which make the reputation as you described for this area. With that being said I believe that if you are doing quality work as a property manager there needs to be profit because at the end of the day you have bills too.  I also think a quality property manager has to educate their clients on what is needed because they tend to know the markets better because they are living in the market.  With this in mind the right expectations can be set for both the owner and property manager, with this mutual win can be achieved. 

Mike

My first question is checking if the property manager is licensed in Nys which he should be. If not the search will Be more difficult. Always ask if a pm is licensed as the address will have to be on file. Plus the broker they work for can track them down. Always ask for references from clients. I am sorry I can't help more. There are a lot of crooked pm folks which makes it easier good quality companies!

@Hai Loc 

Glad you love our wonderful Buffalo so much :) We need to catch up at some point now that the wedding is done. There is definitely money to be made across the border! 

Mike

@Himanshu Jain 

I would say ask other investors in the community who they use for a property manager. Usually it is best to find this out at your local REIA meet ups. I also would ask for references. In many states you are required to be a licensed real estate agent (NYS requires this) There are a lot of people out there that will charge very low rates but are not technically 'legal' With that said there are other property managers that churn tenants ( to increase their own income) or create 'fake repairs' and charge out of town landlords for the 'fixes'

I believe making sure to find someone who his trustworthy is paramount and someone that actions and words align. These are the principles we work on for our Property Management Company.

Folks,

we will be meeting on sept 10th 2014 for the next buffalo BP meet up.

hope to see you there !

https://www.eventbrite.com/e/western-new-york-biggerpockets-meetup-910-tickets-12766499945

Mike

Congrats define upstate ?