All Forum Posts by: Andrew Freed

@Eddie Miretsky - Makes total sense, there are definitely other opportunities out there that would fit your goals. Most likely investment residential or commercial real estate. Of course, come on down to the meetups. I host them once a month in Worcester, the next one is on September 18th. More info can be found here: https://www.facebook.com/simplifiedREImeetup. Looking forward to connecting at the meetup. 

@Eddie Miretsky - Quite the list of questions, that could be a 10 hour conversation lol. Either way, happy to help you find some options / strategies in the Worcester market. I own over 100 units in the area and have a team of agents that only work with investors. Easiest option would be a househack on a 3-4 family nonetheless happy to explore other options. 

@Summer B. - I think you should use this as a lesson learned. Whenever you close on a property, one of the first things that should be done is to check for a leaky toilet and replace it. Replacing a toilet can be relatively cheap but wasting water via a leaky toilet can add up to thousands of dollars in costs. Personally, whenever I close on properties, one of the first things I do is to replace all the toilets. I'd say about 50% of my acquisitions have leaky toilets hence it should just be general practice to address this up front. 

@Natasha B. - To be a successful agent, you definitely need access to a car to show properties and to list properties. As well as coordinate all the due diligence. I highly recommend figuring out your car situation prior to being an agent otherwise you'll spend all your time transporting between properties. It will be highly ineffective. 

@Faris Wright - Welcome to the BP community, there is so much value here it is almost overwhelming. One of my biggest tips would be to attend as many meetups as you possibly can. I've met contractors, partners, investros, lenders etc all at the meetups. They are a cheat code to building an all star investor focused team in any market. Best of luck on your journey towards financial freedom. 

@Matt Owens - I've used the HELOC route to expand my portfolio and it has been extremely effective. I HELOC'd my 1 bedroom condo in Boston MA, took out $200K and used that as a warchest to expand my portfolio. I utilized it for 3 househacks and 3 joint venture amounting to 20+ units. The key with the HELOC strategy is understanding the concept of arbitrage. Whatever you utilize this HELOC for, it is imperitive that you transition these funds into opportunities that provide a much higher return than what you are borrowing at.

Additionally, I personally like the Northeast market, much less competition since people interpret the tenant friendly aspect as more challenging, but with that comes less competition. Additionally, it is way more insulated than the sun belt due to the regulatory requirements when it comes to building. It is much more challenging to create supply in the Northeast further increasing demand. I invest in MA, RI and plan on investing in NH. All good markets if you target the right tertiary area. 

@Brian J Allen - Agreed, some of these properties in Worcester are way over priced and do not make sense at the sales price for some of these househackers. Personally, in Worcester, I think $600Kish is a good range for a 9 bed 3 bath based off the revenue. At $700K for some of these 3 families, the numbers simply don't make sense. Good observation. 

@Hardy Davis - All good questions! If you lived in your primary residence for the last 2 years of 5 years, you're eligible to sell it and pay no taxes on the first $250K for a single person or $500K for a married couple. A 1031 defers paying taxes but a primary residence sale removes the tax liability from selling up to a certain dollar threshold altogether. 

Personally, if possible, I would take the tax free money and transition that into a commercial multifamily property (5+ unit property) rather than 1031. You won't be against a time clock to find a property which is the case with a 1031. You also are gaining tax free funds vs. simply deferring the tax liabilty down the road until you sell the new 1031 property you purchased. Just something to consider. Either way, you are going down the right track. Good luck on transition your equity into cashflowing commercial multifamily. 

@Grady Gilman All really good questions. When I search for househacks, I try to idenitfy value by finding a mismatch between square footage and bedroom count. For instance, say I run across a 3 family at 4,000 square feet but its marketed as a 6 bed 3 bath property. Normally 3-4 bed units are 1000-1400 square feet on average hence if you find a property where the average square footage per unit is 1300 but its listed as 2 beds each, there is a high liklihood you can find additional bedrooms increasing value with some simple carpentry work. I hope that helps in your search to find the perfect househack. 

@William Stewart - This is way too generic, how do you expect to gain any value from this post? When you want something in life, you have to ask for it and be very specific. What sort of real estate opportunities do you want? Multifamily in Charlotte at $150K a door or less? Like be very specific otherwise you will get no feedback or insight to address what you are truly looking for help on.