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All posts in rental property

On December 14th, 2016 I finally closed on my first rental property! For over a year I have been educating myself as much as possible in real estate investing to one day finally take the plunge. That day finally came. A couple months ago, a property on the MLS cam back on the market. It was a 3-family in Mattapan that needed a decent amount of work to get it up to rental condition. Listed at 390k, I initially tried to get the property at 350k, a price that, once I ran numbers, felt would put me in the best position when it came time to refinance out of my purchasing loan, which I ultimately used hard money for. I submitted the offer with no contingencies, all cash and gave up the buyer’s side commission because I knew on the back end it would be worth it, but that was still not good enough and after some continued negotiation, had to settle for purchasing it at the full asking price. This would create additional challenges, but at the end of the day, if you believe in the deal, you’ll make it work.

Financing the deal was another challenge as I really wanted to find a lender that would finance a percentage of the purchase price and renovations. It was not until it was too late that I found a couple lenders where this was possible. At least for the next one, I will have this component lined up for a more streamlined process. I ultimately had to settle on using hard money, which is great for a short turnaround, but is so incredibly expensive to someone like me who hates to waste money. When it comes to hard money, if you have any other option, please use it instead.

Since the closing, it has been a mad scramble to start the renovations and make sure everyone is working constantly and as efficiently as possible. This is just another thing you will have to do when you slightly overpay for a property. Despite the challenges early on, I couldn’t be happier or more excited to have closed on my first rental property. Every day that passes makes me want to find the next deal more and more. Just always be ready for the more than likely roller coaster ride!

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How Long Will It Take For My Home To Sell?

What is your typical selling timeline and why it’s important to you as a potential seller? If you’re selling a property, you really need to know what’s the next steps and What am I looking forward to. How soon do I need to move out of this property? How soon do I need to turn over the keys to the new buyer?

That’s what I’m going to try to lay out for you. Hopefully it’s pretty clear through my timeline sketch here. When you first put a piece of property on the market and you tell your realtor, let’s go ahead and let’s sell this property, the first thing that your realtor is responsible for doing is marketing and selling the property. Your realtor’s going out and they’re putting the property on the MLS, on Zillow, on Trulia, these different marketing websites, they’re putting it on their own company website. They’re going out there and they’re doing open houses, doing private showings. They’re trying to find that potential buyer for you.

Once that potential buyer is found, and by found what we mean is, a potential buyer has seen the property through an open house, through some type of marketing venue and they’ve now placed an offer on the property. You realtor at the time of receiving that offer is going to come to you, they’re going to negotiate with the potential buyer on your behalf to get the highest sales price with the best terms possible. Once you, the seller, and that potential buyer have agreed to a price, agreed to terms, we call that day one. That is your offer to purchase day, that is the day that the offer, or OTP, has been accepted. That starts your timeline.

You have agreed to sell for a particular price, the buyer has agreed to buy for a particular price, which starts your 45 day approximate timeline. From there, in a typical situation your buyer is going to go into their 10 day home inspection window. Most offers are submitted with a 10 day, standard 10 day window and this allows the buyer to now enter your property, and to your tenant units and to, if it’s a multi-family enter the property to inspect the home with a licensed home inspector, with a contractor, to make sure that the systems are working, to make sure that the roof is okay, to make sure that the windows operate.

They’re going to do a full inspection to make sure that the property is truly what was being presented to them and it is in good working shape. At the end of that 10 day period, you can go with the buyer, it can go in a couple different ways, the buyer can say, I love the property and I want to move forward. That’s what we hope that the buyer does. The buyer can say, there were some things I didn’t really agree with at the potential property, this is not the right property for me, I’m going to back out of this transaction, or the buyer can say yes, I like the property but the price that we agreed to on day one, I don’t feel like that price is appropriate any longer.

The heating system is not working the way it should be, or it’s working but it’s much older than I anticipated. The roof is fine, but it’s much older, it’s 20 years into it’s life and is going to need to be replaced. The buyer has three options, either back out, move forward or renegotiate after that 10 day period. They’ve done their home inspection, let’s say hypothetically we’ve renegotiated and you both, the seller and the buyer, have come to an agreement on price. After that, you as a seller, the buyer, would both hire attorneys and you would go into what’s called the purchase and sales contract, or P & S.

What that does, it solidifies the deal and puts all of the offer information and the final price with the terms into a nice contract that the attorneys can use and it helps us move forward into the sale with a more concrete contract than the offer and purchase. The buyer is also going to put down a larger deposit this time and say yes, this is the property that I want, I’m now going to pursue my mortgage. You’ve had day one, you’ve had your home inspection period, we’ve renegotiated the price, we’ve gone and we’ve hired two attorneys, we’re gone onto purchase and sales.

The buyer is moving forward, the seller is moving forward. Now for you as a seller, from that day 15 to day 45, it’s about a 30 day window, I’ll describe to you a little bit about what the buyer is doing. The buyer in this particular situation is putting their mortgage together. They’re going back to the mortgage company and they’re saying, I found the property that I want, I’m submitting my taxes now, I’m submitting my other documents and the mortgage company is processing all that information to make the distribution, to pay you for the property and to put a lien on the buyer’s property.

You on the other hand, you as the seller, are working with your realtor to do three main things. One is the bank of the buyer is going to send out an appraiser to appraise the property to make sure that the property is worth the amount of money that you have agreed upon. Your realtor is going to make sure that the appraiser has access to the property and that the appraisal is properly done for the bank. The realtor, your realtor is also going to work with the local fire department to make sure that you have a smoke certificate.

Any time a property is being sold, the property needs to come with a certificate from the Boston or local municipality saying that the smoke detectors are in working order. Your realtor is going to help you cover that and you also have to get a final water reading. What are you paying for water bills, at the closing day you want to make sure that all your water bills have been paid and leaving the new buyer, the new owner of that home with a clean balance, a clean water lien with the local municipality or local water department.

Day one, day 10, day 15 and then finally we get to day 45, sometimes there is delays depending on holidays, sometimes it’s bumped up depending on if the buyer can submit their mortgage documents sooner but it’s typically a 45 day timeline from the time that you receive that offer to the time that you get to closing day. At the closing table you would exchange keys with the buyer, you would get the check from the closing attorney for the balance, assuming that your mortgage will be paid off, all the liens will be paid off on the property and whatever is left over you would receive as the potential seller.

Again, when you’re selling a property you typically have about a 45 day timeline from the day that you receive an offer, that offer to purchase is accepted to the day that you close and the new buyer is now the owner of that potential property.

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West Roxbury Multifamily Sales & Rental Market Data

Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success.  Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents? Is now a good time to sell?

Here are West Roxbury’s multifamily sales and rental market statistics for the last 6 months.

Total Multi-Family Listings SOLD: 9

Average Living Area by Square Feet: 2,910.00

Average Listing Price: $675,735

Average DOM (Days on Market): 68.11 Days

Average Sales Price: $677,778

Average Rent for 1 Bedroom Units: $1,577

Average Rent for 2 Bedroom Units: $2,004

Average Rent for 3 Bedroom Units: $2,356

Average Rent for 4 Bedroom Units: $2,957

I Want To Know My Home’s Value!

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!

Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. In the fourth and final section of the webinar, we talk about six ways to create more value in Boston rentals, creating a “preventative maintenance schedule” and should you hire a professional and what do they charge.

For more resources and tips on managing your properties, please contact us.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. In the third of four sections of the webinar, we talk about protecting your real estate investments and essential landlord/tenant forms that you will need throughout the course of running your business. Many people will say it’s not “if” you will get sued, but “when” so learning about all the strategies that can protect your investments is imperative.

For more resources and tips on managing your properties, please contact us.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. In the second of four sections of the webinar, we talk about how you should handle your income, expenses and taxes when it comes to your rental properties. This is another area of focus that is very important when running your business.

For more resources and tips on managing your properties, please contact us.

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In our latest series of educational webinars, we explored the topic of self managing your rental properties vs. hiring a property manager. Even if you initially plan to self manage your properties, it is important to still factor in the cost of hiring a property manager. In the first of four sections of the webinar, we talk about the eight tools every small landlord needs, mastering your rental market and marketing your rental units. Each topic is very important when running your properties like a business and making the best decisions for the business.

For more resources and tips on managing your properties, please contact us.

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Cash Flow

Cash Flow by definition is the total amount of money being transferred into and out of a business, especially as affecting liquidity. In real estate investing, what this means is:

Total Income – Total Expenses = Cash Flow

While you would assume total income would consist of just rent, make sure to include other potential sources of income including application fees, late fees and laundry income. If these sources are possible, also make sure to estimate your numbers using a conservative approach. In the long run this will be the most beneficial approach. On the flip side, your total expenses are NOT simply your mortgage, property taxes and insurance. Other expenses that cannot be overstated include utilities, potential flood insurance, repairs, vacancy, property management and capital expenditures. The last three expenses can be used as percentages against your monthly income from the property. Failure to include ALL possible expenses could lead to you purchasing a “deal” that actually turns out to be no deal at all.

Depreciation/Appreciation

Once you have purchased a property and become a landlord, it is to stay up to date with the value of your property and identify whether appreciation or depreciation has taken place. While this is very important post purchase, factoring in appreciation for an investment decision is speculative in nature and brings unneeded risk into the situation. In the event that your property has depreciated over time, there may be significant tax advantages to this and those same advantages may even be available to you if your property has appreciated over time.

Net Operating Income

Net Operating Income by definition equals all revenue from the property minus all reasonably necessary operating expenses. To look at this simply, NOI is calculated on a monthly basis using monthly income and expense data, therefore it can be converted to annual data just by multiplying by 12. The important thing to remember with NOI is that the formula does not include debt service costs, (loan costs) which differs from cash flow. One of the biggest reasons a landlord will want to know this number is because Net Operating Income plays a huge role in determining the value of your property. For this reason, it is in your best interest to work towards maximizing this number using different strategies to accomplish this.

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Now that summer is finally here, it is a good time to take a look at all potential maintenance needed for your properties. As the winter months tend to be the quieter time of year, spring is typically the time that tenants move out, whether it is a result of a new job or just general life changes. Therefore, it is most important that you inspect your properties to ensure that the condition is such that you can turn them over quickly. If not, it is definitely important to address such issues to maintain the desirability of your property. Some specific areas of maintenance include:

Landscaping
One of the more important summer maintenance areas, a well landscaped property can do very well for the desirability of your property. Falling under curb appeal, this is one of the first things a potential tenant or buyer will notice when first seeing your property. And seeing as first impressions can be very important, it is critical to keep your property well maintained on the outside. The good news is that this is one of the easier jobs to do yourself and should be relatively easy to receive help if need be.

Siding and Walls
Like landscaping, the siding and walls on the outside of your property go a long way to maintaining its desirability and positive first impression appeal. When cleaning your siding is all that is required, simply wash the siding with a soft cloth or ordinary long-handled, soft bristle brush. This can be done using water and mild soap. The best approach is to start at the bottom of the siding, work your way up and rinse the cleaning solution completely before it dries. If siding needs to be replaced, this is another relatively small job and can be learned and applied in a relatively short period of time.

HVAC Systems
Your tenants are definitely going to have working A/C during the summer months, so this is one of the most important areas of focus within your property. One of the specific components to pay attention to for A/C maintenance is cleaning the air conditioner coils, both inside and out before cooling season begins. When the coils are dirty, the system runs longer, which reduces efficiency and increases cooling costs. Another component to address is to check and refill the refrigerant charge if necessary. If you do not have the right amount of cooling refrigerant, you run the risk of damaging the air compressor. Lastly, clean and calibrate the blower system components for optimal airflow. This will lead to a longer lasting and more efficient system.

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What’s the difference between a lease and a Tenant At Will (TAW)?


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It is no surprise Boston rents have skyrocketed it seems over night. Some areas have seen increases as much as 25 percent over the past few years. Salaries are not keeping up with the pace of housing costs. This fact hurts middle to low income tenants but provides great benefit to landlords and young professionals with cash to burn for convenience. 

The hub is one of the most expensive markets in the nation. Overseas investors purchase properties without seeing them, they simply want somewhere to park their money and earn a great return on that investment. The Boston market is ideal because we are the educational hub, young professional and business hot spot.

Not only do we have oversees investors, but also new investors who want to own a property and have tenants help pay their mortgage. In the short term, the owner’s “rent” is cheaper as tenants pay the bulk of the mortgage. In time, as property values appreciate and owners take advantage of the many tax benefits of owning real estate, it becomes a more profitable and solid investment. If the market crashes, your home may lose value as far of sale price but your income from the property is stabilized and you are not financially affected if you are a responsible landlord. 

In addition to owner occupant investors, we have young professionals who are looking to diversify their portfolio by adding a little local real estate. They do not reside in the property but rather use it as a generator of additional income. Boston’s market is very strong and has weathered most of the financial downfalls of the nation so it is seen as a more safe investment.

Jamaica Plain and Roslindale are hot beds for hipsters and young professionals, and investors know this. Adding amenities and converting triple deckers to condo units is extremely lucrative and they are cashing in on the trend. Investors can spend full price on a triple ($600,000), convert each floor to a condo and sell each unit for upwards of $400,000 each unit. 

The benefits of buying a multi-family is very apparent to oversees investors and becoming more popular with young professionals. If you are interested in purchasing or selling your multi-family, please email us at Contact@MandrellCo.com.

One of our multi-family focused agents will be in touch and can walk you through everything you need to know, whether a buyer or a seller.

Contact us TODAY: Contact@MandrellCo.com 

 

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South Boston Rental Prices Quickly On The Rise

Are you a current or aspiring landlord in South Boston? No matter your years in the rental business, fully understanding your local market is one the most important things you can do to ensure your long-term success. Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your units rent for in comparison to your neighbors. Should you be increasing your rents?

 
Here are South Boston’s rental market statistics for the last 6 months.

 
Total South Boston 1 Bedroom Listings Rented: 125
Average Rent for 1 Bedroom Units: $2,107

Total South Boston 2 Bedroom Listings Rented: 252
Average Rent for 2 Bedroom Units: $2,735

Total South Boston 3 Bedroom Listings Rented: 98
Average Rent for 3 Bedroom Units: $3,391

Total South Boston 4 Bedroom Listings Rented: 23
Average Rent for 4 Bedroom Units: $4,070

 
Would you like a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email (or complete the contact form below) to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!
Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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Would you like to have more control over how your retirement savings is invested? Are you sick of stacking cash away just to have the stock market drop 5% over night for no apparent reason? If this is you, consider moving your retirement savings to a Self Directed IRA. SD retirement accounts allow you, the account holder, to specifically “direct” your savings to the investment options you choose. Brian Kearney, from the Entrust Group answers your specific questions in the short video below.

Still have questions? Give us a call at 617-297-8641 or email us at contact@mandrellco.com. We’ve love to assist and connect you with the right professionals in the business.

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Off Market 3 Family Deals – Dorchester

Hi Boston Investors,

Corner lot multi-family with terrific cash flow. Owner looking to sell 3 unit building within walking distance of Fields Corner T Station. Each unit has 4 bedrooms, 1 bathroom. There’s private outdoor space and in-unit laundry. All units have de-lead certificates & utilities are paid by the tenants. Rents: Unit 1 – $1850  Unit 2 – $1750  Unit 3 – $2100 – Possible vacancy opportunity for owner occupant.

ASKING $550,000 – 74 Westville Street, Dorchester MA – Principal buyers only

Contact TJ Moreau for more information – (832) 576-6337 or tjmoreau08@gmail.com

Looking for other off market opportunities? – http://mandrellco.com/off-market-deals/

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Hamilton Company Building (48) 2 Bedroom Rental Units In Brighton.

The Hamilton Co. recently broke ground on a new six-story, 49,000-square-foot apartment building in Brighton.

The property, located at 40 Malvern St., is the first step in the company’s plan to invest $100 million in Packard’s Corner, in Boston’s Allston neighborhood.

The complex is expected to be completed in September 2016, and will have 48 units, each with two bedrooms and two baths. The units will average 900 square feet and the top-floor units will have views of the Charles River. Rents will start at $2,600 a month.

Amenities for residents will include off-street parking, a “green” roof garden and access to both a Hamilton-owned recreational facility and the MBTA.

“This project is an excellent example of a transit-oriented development that will transform a parking lot into much-need housing,” Brian Golden, director of the Boston Redevelopment Authority, said in a statement. “I congratulate Hamilton Co. on its success, and I look forward to seeing the building come to life.”

Like The Mandrell Company on face book to stay in tune with other local developments around the city of Boston.

Dorchester Real Estate Agent

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Okay, so you’ve found great tenants and their expected to move in on the 1st of the month. Now what? Here is a quick “to do” list to make sure you and your rental property appear super professional from day one.

  1. Change the locks and get new keys to the apartment – You’ll like your tenants to feel as safe as possible when they take possession of their new living space. The last thing you want is for them to start questioning whether the old tenants still have access to the unit. Be sure to make several copies and keep a copy for yourself. You’ll need your set of keys if your tenants happen to lose theirs or if you need to enter the apartment for an emergency.
  2. Get a new mailbox key – In the haste of new tenant preparations, many landlords forget the also place a new lock and key on the mailbox. Your previous tenants should have changed their address with the post office so there is no need for them to come back and access this box.
  3. Change the name on the mailbox – Make sure to let the mailman know your old tenant have moved and the new tenants are coming in. The easiest way to do this is to place a new label with the tenants name on the mailbox. If you don’t have one already, get yourself a label maker. When your new tenants see their name on the mailbox on move in day, it will make them feel right at home.
  4. Get the apartment professionally cleaned  – Make sure the apartment has a clean/ fresh feel to it. If you want your tenants to stay for awhile they’ll need to feel as if it’s truly there home. The best way to do that is to make sure there are no remnants of your prior tenants. I always replace the toilet seat and leave the plastic wrap on top. For $20, this shows my new tenants that I truly care about making them feel comfortable.
  5. Add a fresh coat of paint on the walls – Paint is the “new car smell” for apartments.
  6. Check the batteries in the smoke detectors & change the light bulbs – There is a good chance the tenants that just moved out didn’t change the batteries or light bulbs. Do these things before your new tenant moves in. You’d rather not have a smoke detector chirping a week after move in and you certainly don’t want light bulbs dying as they’re moving in boxes.
  7. Prepare a “Welcome Basket” – Moving isn’t easy and there are often things that are lost in boxes the first couple nights after a move. Help out your new tenants out with a couple a basic items. Prepare a welcome basket with toilet paper, tooth paste, tooth brush, soap, local take-out menus and any other low cost item that they may need the first night. Anything you can do to help them get settled in is going to be very much appreciated.
  8.  Get a list of service providers for your new tenants – Prepare a list of companies your new tenants will need to contact. They’re going to call you for this information anyhow, so you might as well have it ready for them at move in. Who provides gas or oil heating? Who provides electrical services? What about cable and internet?

Do you need help finding qualified tenants for an empty apartment(s)? We can help you fill your vacancy at NO COST to you! We do a complete a background and credit check as well as income verification and several other services. For more information, call us at 617-297-8641 or email Willie@Mandrellco.com

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Proper Water Use – This one is pretty straight forward. I’ve had past tenants wash their cars in my driveway and go as far as bringing friends over to wash their cars as well. I had to stop that immediately.  People who’ve never owned property may not understand (or care) that water isn’t free. When they shower and flush the toilet the landlord is paying for it which is reasonable and required by law. But what isn’t required is that you fund their outside water activities. Make sure you address what is/ isn’t acceptable within a clause of your lease.

Trash Removal – Have you had a tenant move out of your rental unit and leave large amounts of trash behind expecting you to take care of it? Here is the specific clause we use in our leases to make sure it’s clear that this needs to be done prior to move out!

Trash removal is your responsibility. If there are large items you need to dispose of, please do this prior to move out. We will not be responsible for removing trash from the unit, the basement or taking trash from the side of the house to the street. This also applies to an excessive amount of smaller items and anything that overflows the trash bin provided to you at move in.

Additional Occupants – Make sure you have a clear statement in your lease agreements that addresses additional people occupying the property after the lease is signed. It’s amazing how many people attempt to sign a lease with one or two individuals and afterward try to move in 3 or 4 people…or more. You always want to make sure you know who’s occupying your property.

Direct TV Dishes – Have you ever driven down a street in Boston and noticed a home with 10 satellite dishes hanging off the side? Did you ask yourself how many people live there and why do they all have their own TV service? Well the problem isn’t the number of occupants, it’s Direct TV. The service provide provides a new dish for every first time tenant while never bothering to come remove old dishes from tenants that have moved.  Why does this concern you as a landlord? Well lets say you’ve own a 3 family home for the past 10 years and between those 3 units you’ve had 15 different tenants. If half of these people chose to use Direct TV as there provider you may have up to 7 stat dishes drilled into the side of your home. Not only does this looks horrible and increases the chances of physical damage to your property.

So how do you address this? You take care of it within your leases. You would ideally insert a clause stating that the tenant must you cable or some other service that doesn’t hang dishes and damage your property. You could also state that the tenant must have the dish removed at their expense prior to moving out (or receiving their security deposit back).

Be sure you’re within legal guidelines when inserting clauses in your lease agreements. As a landlord I keep a Landlord/ Tenant legals guide handy and always consult my attorney if there is anything I’m still unsure about.

Like us on Facebook for more Boston landlord tips!

 

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Understanding local rental rates in your Boston neighborhood is extremely important to your success as a landlord and real estate investor. There are three basic stages to any investor’s career, which are the buying, holding and selling stages. In each phase your knowledge about the current rental market will determine if you come out on top or not.

To give you an example, let’s assume we’re considering at a rental condo in Boston’s Beacon Hill.  When you’re evaluating whether or not the property is a good deal, an obvious factor is the potential rental income the property can generate. You must understand the Beacon Hill market, the tenant base and the length of time or DOM (days of market) of your average rental. It’s also a good idea to understand what your tenant base is looking for in a rental. Is the area dominated by families, single professionals, students or is it and older community? This knowledge will help you determine the types of finishes and improvements you’ll need if any.

There are many investors who’ve had tremendous success in the rental business and have been able to hold onto properties for a number of years. When these landlords eventually go to sell, they’re in a less than perfect position despite their past success. The reason for this is that they’ve failed to keep up with current rental rates in their markets. Often, landlords with long-term tenants will keep rents low despite the steady increase in values throughout the neighborhood. These landlords do this in fear of disturbing “a good thing”. They have a great tenant who’s been paying rent consistently and they fear of increasing rents would possibly disrupt that consistent flow of income. While this is a valid concern, what most investors don’t realize in that they are devaluing the property. The easiest way to put this into perspective is to pretend you’re a potential buyer and you’re considering two identical rental condos. The condos are identical in every way and they are both coming with the existing tenant base. If condo A has rental income of $1700, while condo B has rent income of $3200 (current market rate), most potential buyers are going to value condo B higher despite the fact that it’s identical to unit A. If we assume our Beacon Hill Investor owned unit A, s he would have to take a lower sales prices than her competitor selling unit B, not to mention all the additional rental income she didn’t collect over the years.

The best way to combat this potential scenario is to consistently monitor your local rental rates. Have your real estate agent send you regular reports like the one attached below. The report will tell you what apartments have rented, how long they’ve been on the market, and the average price  those rentals have rented for.

The example report is for a landlord in the Beacon Hill area. She has a 2 bedroom unit with 850 square feet. The report shows activity in the area for the last 3 months.

Beacon Hill 2 Bedroom Market Report

Would you like a FREE rental and sales market report for your area? Simply email Contact@MandrellCo.com with your criteria and we can have it out to you within 24 hours! You can also call us at 617-297-8641.

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Boston Wealth Builders Seminar Are you interested in learning more about investment real estate? Would you like a great place to network with new and experienced investors? Join Boston Wealth Builders! We are a group of house flippers, landlords, wholesalers as well as many other investment industry professionals throughout Massachusetts. We gather and discuss local industry trends, new products, marketing techniques, where to find the best deals and how to finance your purchases. We meet in Boston as well locations North, South and West of the city, so there will always be a meeting near you! The group is growing at a tremendous pace and we would love to have you be part of it. Come learn a little and share a little with us! Join anytime for FREE at www.BostonWealthBuilders.com . Hope to see you at our next event!

 

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Boston is a great place for investing in real estate and now is the perfect time to be buying! Here are 3 quick reason that make this true:

1.  Why Boston? Boston vacancy rates are extremely low as of today.  The vacancy rate throughout the city is somewhere around 3%.  This means as a landlord you are not going to have trouble finding or replacing tenants. There are incredible amount of people in this city looking for quality rentals and that number is growing.

2.  Rents are rising rapidly…supply and demand.  We have more people looking for apartments than there are apartments available. The demand is higher than the current supply and it’s pushing the prices of our rentals upward.  This is a trend that is likely to continue into the near future. As your properties rental income grows so will its value.

3.  The economy and the job market here in Boston are very strong.  Because of this we don’t experience the wild swings in property values seen in some other areas of the country.  As a property owner you can be certain that value of your property will remain steady compared to other states.

If you’ve ever considered becoming a landlord or if you’re already a landlord looking to grow your investment portfolio….there has never been a better time to start shopping. You couple the market conditions here in Boston with historically low interest rates and to me it’s the perfect storm for buyers.

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Saturday, September 14, 2013 11:00 AM   Hampton Inn 319 Speen St, Natick, MA

Interested in building a portfolio of rental property investments? If so, you don’t want to miss this event!  A large part of building a successful real estate portfolio is building a professional real estate team around you.

This tradeshow will bring together more than 200 local real estate investors and investment experts and is an excellent opportunity for you to meet local vendors & business professionals. It will also be a wonderful opportunity for investor networking and business development. If you’re serious about real estate investing you won’t want to miss this!

It’s free to register for this event. Just go to http://www.BostonWealthBuilders.com

Come speak directly to industry professional like never before! This event will be great for the novice to advanced real estate investors. Whether you’re just getting started with investing or looking to develop new strategies and income sources, we’ll have something for everyone. RSVP Now! http://www.BostonWealthBuilders.com

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Is your tenant’s lease is expiring soon? Do you have a current vacancy ? Let us help get you back to collecting rents!

Dear Boston Area Landlords,

My name is Lloyd Mandrell and I’m a Licensed Realtor, and fellow Landlord, in the Greater Boston area.  My firm would love to assist you in finding and placing an ideal tenant in your residential rental unit! 

As a Realtor, specializing in the Boston rental market,  I work directly with only best and highest qualified tenants. I currently have several  such tenants looking for rentals in almost every area of the city and would like to talk to you about your available rental unit. It would be great to see your apartment, take some pictures to begin showing it to my very interested client base, as soon as possible. 

When you place your rental with me and The Mandrell Company, we will handle your tenant’s application, credit checks, employment verification, criminal background checks, lease agreements and more. The best part about listing your rental with us is that our tenants pay our fee and there is absolutely no charge to you for our services!

Our company also offers a terrific property management service if you need assistance beyond filling you vacancy.

Please contact me if interested or if you have any questions. I can be reached at 617-297-8641 or at Lloyd@MandrellCo.com.

We want to help you get back to full occupancy and collecting rents…

I look forward to hearing from you!

 

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Hire the Right Realtor

When you’re looking to sell your home, it pays to work with a REALTOR who knows the local real estate market inside and out and has excellent contacts in all real estate related fields. Selling you home is no small task and shouldn’t be left to just anyone. Remember that you are selling a business. Selecting a realtor that’s familiar with the rental business can better help you achieve your goals throughout the sale and improve your bottom line.  
 
Before making the decision to hire, you should request a pre-listing package from your selected realtor. This package should contain and explanation of the selling process you will experience, what forms of marketing the realtor will use and a brief description of the realtors background and experience. 
 
Logic vs. Emotion 
There can be a lot of emotions tied to selling your home, especially if you’ve lived in one the units for a significant amount of time or if you’ve put a considerable amount of energy into maintaining and improving the property. While most sellers expect the final sales price of the property to reflect every hour of work and every penny they’ve spent during their time of ownership, in most sales this, will not be the case. 
 
Removing your emotional ties is one of the first things you must do as a seller preparing to part with his/her property. You must disassociate yourself. You should look logically at the selling process of your home and prepare to make decisions based on that logic alone. Despite how much time and energy you have put into your property, a home is only worth as much as someone else is willing to pay for it. 

Need some professional advice? Call 617-297-8641 or email Willie@MandrellCo.com

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If you’re just getting started in the world of income producing property, here are 3 investment concepts you must become familiar with.

The first is NOI or Net Operating Income. NOI is the amount of net income (after expenses) the property is producing on an annual basis. NOI is calculated by taking the gross rental income and subtracting the property’s annual operating cost. The gross income is the total rents collected plus any other income from laundry, parking, storage or other misc. sources. Your expenses are all the cost associated with maintaining the property on an annual basis, including taxes and insurance. Your mortgage payments (principal and interest) are not included as expenses in the NOI formula. Your mortgage payments are known as “debt service” and will change from investor to investor due to differing down payment amounts, interest rates, and loan terms.  

Understanding your property’s NOI is crucial to the calculation of our next investment term,…the “cap rate”.  Cap-rates are used to determine the value of an income producing property and are found by dividing the net operating income by the property’s cost. The cap rate is great for comparing the value of one income property to another.

Typically any cap rate above 7 percent is considered a good investment, but obviously the higher the rate the better. As an interested buyer searching for properties, you should set a cap rate minimum based on what’s typically achieved for your area. Generally, the riskier the investments the higher the expected return …or rate. Higher cap rates are expected on older home and in less desirable areas.

ROI (return on investment) measures the annual return on the initial capital you invested. Your initial investment includes your down payment, closing cost, initial improvements and any other initial out of pocket cost associated with the property purchase. The calculation of ROI is slightly more complex than other financial measures and should be calculated using a reliable computer program or financial calculator.  ROI allows you to compare income producing property to other investment assets (stocks, bond, or alternative investments) and determine whether your money is invested in its highest and best use. 

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If you’ve been thinking about buying your first home or considering an investment in real estate, now may be a good time to purchase a local multi-family home. With depressed real estate prices, historically low mortgage rates, and an increased demand for rental units, the current real estate market has created a perfect storm for new landlord.
 
Over the last year the Boston rental market has experienced a huge jump in demand. Boston landlords are achieving higher rents, while also experiencing less vacancy time. According to MLS Pin, at this time last year the average Boston apartment in was renting for $2,232 vs. a current day asking price of $2,679. That’s a $447 difference and nearly a 20% increase. The number of days apartment rentals are staying vacant has also been cut down significantly. Our current average rental unit DOM (days on market) is approximately 41 days, compared to 58 days this time last year. Not only are Boston rentals bringing in more income, but they are bringing in tenants on an average of 17 days sooner.
 
I regularly speak with many would be buyers that are sitting on the side lines in this great buyers market. These buyers seem to be waiting for national headlines to tell them that it’s ok to buy a home again. Savvy buyers and investors understand that real estate trends, and therefore values, are local in nature and not necessarily affected by what happens on the national stage. Make sure you are one of these buyers and educate yourself on what’s happening locally. For income producing property you also want to look at the cash flow being produced. Stronger rents typically mean stronger cash flow and therefore stronger home values.
 
When you see rents on the rise, DOM slimming down and combine those factors with the fact that Boston has always been a great place to live, it’s hard to produce a good reason why now wouldn’t be a great time to be a local landlord.
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