All posts tagged Apartments
Cheryl Ricketts and Kate Brennan of The Mandrell Company take you through “10 Things Every Landlord Must Do Find Great Tenants”. While the information is geared toward Boston area landlords, must of the tips and tricks can be used anywhere in the state of Mass. For more information or for questions, you can contact them at Kate@MandrellCo.com or Cheryl@MandrellCo.com.Read more
One of the best ways to invest in Boston real estate with little to no money out of your own pocket, is the BRRR strategy. BRRR stands for Buy, Renovate, Rent & Refinance. With this strategy the goal is to buy single or multifamily homes that need significant work. You would then renovate this property and bring it to current rental standards. Once the property is fully rehabbed, and rented, you would seek out permanent bank financing to pay off your construction financing.
Part 1: The goal is to create enough equity via your rehab, and to stabilize the property with tenants, that the banks will not require a down payment when you attempt to refinance. An ideal situation is laid out below.
Purchase Price – $350,000
Rehab Cost – $130,000
Financing Cost – $20,000
Total Invested = $500,000 (Refinance Amount)
ARV = $625,000
$500/ $625 = .80 or 80% LTV
Part 2: The second part of the equation, is making sure that your rents fully cover your monthly debts after refinancing. In other words you need your income to exceed your expenses and to producing cash flow for the banks to consider this a good loan. The numbers should look similar to below.
Total Rents Collected – $6,000 Monthly
Mortgage Payment – $2,000
Taxes & Insurance – $1,500
Other Cost = $500
Total Monthly Cost = $4,000
$6000 Rents – $4000 Expenses = $2000 Monthly Cash Flow
Want to see a current BRRR project in process? Come check out our latest 3 family investment as we prepare to bring this rental property back to life! This is a buy and hold deal that’s getting a full rehab. During the property tour we’ll explain:
• Exactly how we acquired the property
• How we raised the capital to purchase
• Our rehab budget & plans for the units
• Our timeline & issues we’ve had along the way
• Rental expectations & cash flow projections
For more details and to RSVP to the meeting, please visit the link below. Hope to see you there!Read more
If you’re a landlord in the Boston area and you have a vacant unit currently or becoming vacant in the coming months, myself and the Mandrell Company would love to help you fill that vacant unit with a qualified tenant.
We do so completely free. There is no cost to you the owner or landlord. We start off by advertising your rental unit for lease. We help you show the apartment so you are not using your valuable time standing around waiting for potential tenants. We take care of that for you as well.
Once we find an applicant who we feel is qualified, based on the criteria that you’ve presented, we then do background checks, credit checks, employment verification and several other background checks to make sure that that person is qualified and they are who they say they are.
Once we gather all that information we then present you with a full package on that tenant. If you deem that tenant qualified and the person that you’re looking for we move forward with the lease signing process and if not we put the unit back on the market and proceed to find another qualified tenant.
We also, again, assuming the tenant is qualified, draft the lease for you, collect all the first month fees, security deposits and anything else that you were asking for and then assist you and the tenant through those first few days of keys, lease signing and various other things that need to be taken care of at the time.
If you do have a vacant unit, if you are looking to fill a vacancy we would love to work with you. You can contact us at 617-297-8641. You can also reach us at firstname.lastname@example.org. We look forward to working with you. Thanks.
Thanks for watching our video. Did you find this information useful? If so please remember to like the video and also subscribe to our channel for more useful information. I would also encourage you to share this video with your friends and family. Thanks again and we’ll talk to you soon.Read more