Rookie investor from Plymouth MA area

Rookie investor from Plymouth MA area

Carpenter · Plympton, MA · Member since 2011 · 9 posts · 4 votes

Great site. My wife and I have been looking for about 8 months to invest in multi's. Any thing worth investing in seems to be sold before its marketed. Cash flow #s seem really low. To get better cash flow should we expect rehab and rent.
John

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  • Wholesaler · Dallas, TX · Member since 2009 · 308 posts · 92 votes
    15y

    How are you trying to find your deals?

  • Carpenter · Plympton, MA · Member since 2011 · 9 posts · 4 votes
    15y

    Mostly threw mls and a few brokers. We have one broker who has been a good teacher with multi's but I know we are not first on the list when a good deal comes in. We have done a few auctions.
    (williams & williams is a joke) We also just joined a local REIA group.

  • Wholesaler · Dallas, TX · Member since 2009 · 308 posts · 92 votes
    15y

    Are you familiar with loopnet? You may find some deals there.

    If you want some real deals you are going to have to contact distressed sellers. You will find what you are looking for with these people.

    You are basically dealing with retail sellers and you'll never find a deal there.

  • Real Estate Investor · Elmira, NY · Member since 2011 · 51 posts · 5 votes
    15y

    whats is your investment strategies? Can you do any rehab?

    Dan Schemerhorn

  • Real Estate Investor · Hudson, NH · Member since 2011 · 76 posts · 25 votes
    15y

    Hi John,

    First, Welcome to BP!

    Regarding the Multi's, in our Massachusetts market it is very difficult to find move in ready residential properties that cash flow from an investment standpoint. Retail buyers don't worry about the cashflow and buy them up, even at a loss.

    I started by doing just what you suggested, buying a 4 unit rundown property, rehabbing, and then renting it out.

    If you are comfortable with commercial 5+ units, I bet you could find something that cash flows much easier. You should be able to find a property with a 10% cap rate that gets you what you are looking for.

    Best of Luck!

  • Carpenter · Plympton, MA · Member since 2011 · 9 posts · 4 votes
    15y
    Originally posted by Dan Schemerhorn:
    whats is your investment strategies? Can you do any rehab?

    Dan Schemerhorn

    I'm a framing contractor by trade with a builders lic. My only problem with rehabing is that I'm use to framing high end houses. I don't know if I would be cost effective. As for investment strategies we started out looking for monthly cash flow but we are open to flipping.

  • Carpenter · Plympton, MA · Member since 2011 · 9 posts · 4 votes
    15y
    Originally posted by Chris Colvard:
    Are you familiar with loopnet? You may find some deals there.

    If you want some real deals you are going to have to contact distressed sellers. You will find what you are looking for with these people.

    You are basically dealing with retail sellers and you'll never find a deal there.

    Whats the best way to contact distressed sellers? I'll do some research here on BP also.

  • Residential Lender · Plymouth Meeting, PA · Member since 2011 · 3 posts · 0 votes
    15y

    Finding a realtor that has access to Fannie Mae foreclosed properties is a good place to start. Becareful with buying properties with structural repairs - it will be harder to get financing and more difficult to project your net profit.

  • Dallas, TX · Member since 2011 · 12 posts · 1 vote
    15y
    Originally posted by Jeff Frutkin:
    Finding a realtor that has access to Fannie Mae foreclosed properties is a good place to start...

    Here you go: http://www.homepath.com

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