All Forum Posts by: Ben Moccia

 Thanks Devin, sending DM now.

Cash buyer looking for off-market multifamily properties in Fairfield County CT in need of moderate to heavy renovations for a BRRRR.

Send me anything you got!

I am conducting market research for the Boston, MA area (my backyard). I can't find much data on the size or volume of investment activity in the Boston area market. I am trying to determine whether there is enough activity and opportunity to support a wholesaling and investing operation here. Do any of you invest in Boston or know how healthy the market is? I am open to out-of-state but thought it would be best to start in my own area if possible.

 If you scroll down on the zillow listing it shows you a history of property taxes from each year

Maintenance and CapEx both at 2% seems low to me. Management fees would delete your cash flow and if you plan on managing yourself, then you are basically buying a property management job.

I agree with Tim, the management fee should be much higher.

CapEx needs to be higher as well, depending on the condition of the property. You have it calculated at 1%, which is still too low even for a new construction.

Also, there's not enough info about financing. Why are you only getting 50% LTV on the loan? Why do you need $200k cash in the deal? This dilutes the ROI significantly.

Is the rental income based on ARV? If so, the ROI is too low. If you can get higher rent after renovations, then it might work. However, you're able to create $40k in equity right off the bat if your purchase price, renovation costs, and ARV are calculated correctly. Could be a good flip deal.

Solid analysis. However, I took a look at the property on zillow and found one major flaw in your analysis that could upend the entire deal. You calculated monthly property taxes at $442. Public records says 2021 property taxes were $13,197, putting the monthly payment at $1,099.75. Just like that, all your cash flow is off the table and the deal turns negative.

Your assumptions look pretty good here. Only thing I would suggest is changing the interest rate on the loan- not sure where you can find a 5.5% rate right now. Just curious, what type of property is this and what market are you in? $5100 monthly income on a purchase price of $350k seems very impressive to me. 

I also notice your management fees are at $0. I know a lot of investors suggest that you factor management in at around 9% (even if you are managing it yourself, you should pay yourself a separate  management fee). If the property is no longer profitable after the management fee, you are basically just buying a property management job, not a passive income asset. This also allows you the option to hire a PM in the future while remaining profitable.