All Forum Posts by: Andrew Zimmermann

@John Whitfield and @Tim Kappel I’m in a similar spot and though interested in STL am not committed yet. I’d be interested to hear your why behind the choice to invest there. I have a small portfolio in Boston and feel I need to grab some cash flow in the Midwest with some of the gains I’ve had back East.

@Jordan M. I’m considering/struggling with the same situation. As a Boston investor, cap rates are low, cash flow scarce and very capital intensive. I like the basic concept of using equity built in a high cost market and then deploying it in a lower cost/higher cash flow market.

The compromise I’m coming to is focusing on out of state markets I have visited or lived in (there have been many in my case). But to everyone else’s point, building a good team and/or connecting with old contacts in those places are key. BP is a gold mine for assembling a team.

@Rob Bergeron me too please. Or let me know when the next Zoom investor call is.

@Fredie Robinson and @Katie Noe, I’m interested in learning more about the Louisville multi family market and am an out of town investor. Let me know if you are open to a conversation.

@Harry James I will vouch for house hacking a multi and following the BRRRR approach. If you can recycle your $80K down payment every 2-3 years and be left with a cash flowing asset every time then I'd say you are on the right track. If you are slow and steady in this approach you'll be able to scale up deal size each time. By the 3rd or 4th deal you'll probably need to go commercial on your loan because of Debt to Income restrictions. But that means you're in the game and have options.

Accelerating that time line either requires equity partners or the churn and burn of doing flips, which then gives you capital for new deals. There are tons of ways to skin the cat. Just pick one and go!

Francesco Epifania judging by the asset you own I would pull out the most money you can while still keeping your existing home cash flow positive. Then devise a strategy that maximizes you investment in new properties. I'm not sure I would over leverage on a new purchase at this point in the cycle as was suggested unless you are planning to add significant value with improvements. Your equity position is a good thing but a fully paid off asset will not give you great return on equity relative to new investments.

@Matthew Roder @Sung Park thanks. For some reason I think while doable, the underwriting on 3s and 4s is much tougher than 2s. Good to know its an option.

Matthew Roder does Home Possible / Home Ready apply to 3 and 4 families? My discussions with lenders seem to indicate it is only available on duplexes. Also I assume it's possible for those who are not first time buyers so long as one can prove reasonably a motivation behind the move?

To add to the talk. The 1% rule is not realistic for Eastie right now (maybe 5-10 yrs ago). You are buying upside, appreciation and a rapidly maturing location. That said it is still a relative deal. 5 years ago I thought $250k + per unit in Somerville was nuts. Now? Forget it. I think something similar is happening here in Eastie.

Ricky Beliveau I am an investor and architect in Eagle Hill and am interested in keeping my capital in the neighborhood. If you are still sourcing, let me know.