A Re-Introduction: New -ish Member in North Shore / Salem

[Ashlie Perry]

Hi All,

I joined BP over a year ago but just recently became serious about getting into real estate investing. I'm reading and learning as much as I can. So I'd love to make any connections and learn as much from everyone as possible. 

About me; I live in the North Shore (Salem) and would like to stick to this area for investing only because I know the market a little better for rent rates and home value. Just looking at the market and quick changes is a little intimidating but I'm ready to jump in. I own a condo in Salem (MA) and I purchased it with NACA. So I must refi or sell the property in order to buy another property. Refi isn't really an option as I'd be adding PMI to the mortgage to then turn around and rent it. So I'm happy to sell. I talked it over with an agent an another BP member and it seems like I'd make a 15-20k profit if I sold, which I'd use to invest in another property.

Here is where I have a few questions for you all;

1) Starting out and lacking a lot of funds, what would you suggest as the best entry into the real estate world? I've read about wholesaling for new investors, SFR vs Multi-family, etc. I'm not sure about wholesaling, it all seems like to can get into trouble if you don't do enough homework. If I sell, I need a place to stay :), so do I invest in a SFR to rehab and then rent or multi-family for a little hacking? How did you decide which to start with?

2) What are some creative sources of income that you all have come across? I'm not swimming in cash but I know that others are coming up with the down payments for their units. I'm reading about it but I thought I'd ask people out there doing it. 

3) I'm willing to work on a project with someone to learn more. I'd offer my assistance for the exposure and experience. So anyone interested, please feel free to PM me.

4) I'm also open to Haverhill if not Salem, Peabody, Danvers, Beverly. Any opinions on the Lynn market? Some investors seem to thrive there and others avoid the city like the plague.  I know the Diamond District is desired but it's as pricey as Salem.

5) Last one, I promise! I'm taking the real estate exam this month. Do you suggest listing your own place as your first deal or no?

My goal: For this year, I'd like to invest in one property. I know my areas (see above) but I'm trying to figure out the financing and if it's better to BRRR first or go the mutil-family route. I have a full time gig so I'm looking to start small and work may way into things.

Again, thanks for any feedback. I didn't want to lay on to many questions, so my apologies if this was long. I'm here to learn whatever you want to pass along. Thanks!

Ashlie

[Rich Hupper]

@Ashlie Perry

1) Wholesaling is a full time job if you want to do it right. It requires a lot of money spent on marketing to off market property owners. Mail, online ads, door knocking, etc etc. I am familiar with Naca. I would refi out of that loan into another one as long as rents can cover your PITI / condo fee. If yes then speak with your new bank and see if your debt to income plus the condo debt plus money saved for a DP will allow you to get into a 2 or 3 fam. House hack that and live there for a few years until you have more money saved.

2) I use a family members home's equity as my source for DPs and outright purchases. Obviously this can only be done if you have a very very good relationship with that person. You can always try to find a seller who will give you a purchase money mortgage. However you would have to find a lender who is okay with this and your debt to income ratios would still have to work. Best thing to do if you have no cash is to find the deal and bring it to someone that does. 

3) I am looking for 2 3 and 4 family  properties that are in disarray with low LTVs in middlesex essex counties and southern new hampshire. If it is short sale i could still be interested. If you bring me one I will allow you to shadow me through the process of acquisition rehab and sale / and or securing permanent financing.

4) Don't know much about lynn. I know all about haverhill methuen lowell amesbury. I don't go near lawrence. the building department is very hard to work with. As well the city being a hub for the drug trade.

5) Sure why not. Just make sure you disclose to the public you are licensee. You will save some commission. I am also looking for agents. I am offering new agents a 90/10 split.

Regarding BRRRR..... This only works with properties that you can add value to. You need to get them for well below assessed value and you need to fix them up so the appraisal comes in at a value well beyond your purchase rehab and holding costs. This is almost impossible to do with anything you see online because the amount of people bidding up the price.

You need to get comfortable approaching owners directly over the phone or in person. Or have marketing budget that gets your foot in the door with home owners well before a broker does.