October 2016

A couple of changes over the last couple of months, but nothing earth shattering.

Howe Ave

Screen Shot 2016-04-15 at 10.02.16 PM

I increased the rent in two of the three occupied apartments and got the fourth apartment rented.  The two bedroom on the bottom floor front was rented at $800.  The tenants have been there for eight years and always pay on time.  I was torn between increasing the rent to $1000 and possibly losing them or keeping the rent at $800 and keeping them.  In the end I compromised and talked to the tenants.  I told them that the unit was substantially under market value and I needed to increase the rent.  They told me they are on a fixed income.  I am not unsympathetic but this is a business.  I asked them to look over their budget and tell me what they would be willing to pay.  In the end, we compromised at $900 per month, and I explained that the rent will go up 3% annually the rent is comparable.  The second apartment I raised the rent on is occupied three bedroom upstairs.  This tenant is on housing assistance and they didn’t even have to pay the increase, the housing authority pays it.  No impact to the tenants, just paperwork for me and an inspection on the unit.  The last unit, the three-bedroom that was unoccupied, was rented out to a family for $1200.  That brings the monthly rent up to $4100 and improves my cash flow substantially.

3 Fieldstone Ct

Fieldstone pic

This property was purchased with an FHA loan five years ago which included PMI.  The PMI was around $225 an month.  I have finally hit the five year mark and the PMI went away.  That is another $225 in monthly cash flow!

 

No changes to St. Marks, Whispering Willow, or Wintercreeper at the time.  In this business I find that to be a good thing though, as that means no major maintenance, costs or unexpected findings.  Steady is good.

 

My goal is to pick up one more multi-family property (four-unit hopefully) by February or March.  If anyone knows of a good deal on or off market, let me know!!

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