All Forum Posts by: Becky C.

@Ryan M. I also just listed to show #215 with @Ricky Beliveau, he was investing in Boston multis from like 2010-2015ish, they doubled in value and have 0% vacancy, but now the #s don't make sense so he's doing condo conversions and picking up his buy and holds down in providence, RI. That offered some more confirmation for me too.

Not that everyone has the same goals, some might be willing to accept close to even or no return or are confident they can keep the maintenance and capital investment #s low... as long as they're going to get that long term equity pay down... rental market will always be strong here.

I did just notice an a 1%ish rule in a foreclosed andover small multi family, but with as-is foreclosed not always being so straight forward there's more work with the condition of the property, getting the prior-owner out if they're still occupying, and possible surprise liens. So for me maybe a bit much to take on (in MA), but not everyone.

Ryan, I'm having the same problem with multi's in the Haverhill area and generally around MA and NH. The #s make you want to ignore planning for expensive and short cut the numbers to make the seem favorable. I've had an agent pushing me in that direction (Haverhill multis) for a while, but I haven't found a deal that makes sense, despite his claims of how great it is. The #s might seem good until you have to replace a water heater, a roof or repair leaks from ice dams (ahhh winter is coming). Once you take a few thousand dollar hit to your monthly cash flow you'll wipe it out.

I'm trying to think more creatively, like units I can get for cheaper because they're two beds, turn them into three maybe... units that are unlivable and need an upfront influx of cash to upgrade and get higher paying tenants in (though that cash counts against profits too). Frankly I'm still inclined to take the leap on the right place and try to minimize expenses, but I'm doing a lot of analysis still before deciding that as well as looking at other ways to spend my money. Don't really want to do out of state, so would my money go to better use in a flip, into commercial, etc.? Tough in our area with the market at such a high right now and risk of overpaying for stuff.

the final thing i keep hearing on the podcasts is make low ball offers - can't hurt especially if somethings been sitting on the market for a few months. if its gone beyond 1 or 2 months they'll probably at least talk to you. a few of the big time podcast folks say if you're not embarrassed of your offer its probably too high, and we all know the old saying - you miss 100% of the shots you don't take ;)

Thank you weighing in @Ann Bellamy I just listened to your BP podcast on hard money and it was very encouraging and enlightening. I definitely appreciate the point that it may be too big a project to bite off for a first rehab. Maybe that property will go to foreclosure and be available in a year or so when I'm more seasoned ;) 

I had somewhat of an "Ah ha" moment after realizing that I can possibly pursue two paths that are not mutually exclusive for the use of the capital I want to invest:   conventional loans for buy and hold investing, and at the same time utilize hard money lending to rehab distressed properties. 

This will help us achieve our goals faster in the we can build both long term security and wealth and do more short term transactional work to help me transition from my day job down the road and become a developer. Thanks!

Ok thanks @Ann Bellamy Good point! I will try to make it sometime soon.

@Daniel Stanton I've been analyzing a lot of multi families from Lawrence/Haverhill/Andover/North Andover to Salem/Danvers/Peabody/Beverly lately. Most that won't cost you top dollar and create a bidding war with all cash buyers are in poor condition, in need of some repair or in neighborhoods you may not want to live.

Do you need to stay on the coast or have access to Boston? There are some good opportunities for owner occupied multis in Andover and North Andover right now. I just visited one the other day that I thought would likely go to an owner occupant. Picking a good town with a great school district might matter more to you now and ensure you have a good long term appreciation.

Hi @Tucker Helmus I am getting started with the same idea as you north of Boston! Are you in Boston proper or a suburb? East Boston is another up and coming area to check out, but as @Charlie MacPherson pointed out even stuff in terrible condition is going at a premium.

@Ann Bellamy's Black Diamond group was active in my old stomping grounds out in Worcester and Waltham I think the meetings typically were held, though I unfortunately never made it to one. But I also need to find a group up on the north shore now that I've moved. I just saw in events that there is a meet up close to me next month, so may check that out.

Good luck with your real estate goals. Hopefully we can keep in touch and motivate each other!

Oh also can anyone recommend good local mortgage brokers or lenders for renovation loans such as the Fannie Mae Homestyle loan or similar products?

I have a great local lender that will do conventional loans (20-25% down for homes in good condition) and commercial loans (which I don't have the background to qualify for yet), but doesn't really address that gray in-between area for properties needing renovation.

Thanks @Michael Pallotta, that is definitely an important point about the market slowing down, which makes me wary of paying top dollar for any property right now. 

Some might think it best to wait until the market dips again to buy, or maybe look in other areas... but I am very motivated to get involved, gain more experience, and build additional capital right here in my own backyard so that when it does drop I am even more poised to act. 

It will be very important to invest in the right area and product where demand and market rent will remain high even through a downturn I suppose.

We had high velocity heating and cooling (connected with our tankless hot water heater in basement and its own AC since we had 3 zones) and ducting in an 1860 Victorian I owned. Unfortunately I can only speak to the performance and appeal of them in the home because I was not part of the install. The high velocity unit was located in a small attic and the ducting was only run to the second and third floors of the home where there was no heating or cooling at the time.

The minimal impact to existing structures is really nice and ability to run the ducting in small areas without having to open up walls/ceilings/floors and lose space or get yourself into a bigger project in an old place seems worth looking into. So don't overlook that you could get some of the high velocity stuff for some areas if you already have duct work in limited spaces. But if your goal is to keep your rehab costs low, it may be worth not doing as invasive of a project and going with the high velocity so you don't run into more problems when you start opening things up!

Agree with Paul that tenant screening is so important. If you look out of state you'll likely be passing off management of tenants to your property manager. I managed tenants from thousands of miles away myself and while I had great tenants that I met and screen myself it was no problem. But not having time to find new ones and screen them from afar I hired a property manager who didn't do as good a job. The people they pass you are just statics on a piece of paper and you can miss key facts, traits or details. I never had tenant issues until I had a property manager. Now that may be an exception, and I have a friend who owns a property in Massachusetts in a b-/c class neighborhood and did have to evict. I'm not sure how much screening they did or not, but it did take them 6 months to a year and many court appearances to get the person out, but they did have the sheriff come and finally get it done. Not impossible, just a lot of time and money. You should think about if you want real estate to be a hands on thing you're involved with or more like buying stocks and hands off since you mentioned roof shares.