All Forum Posts by: Ben Pasculano

@Greg Dickerson I found a replacement cost on the town property card. Should I use this number as it is or is that number typically lower than the actual replacement cost like how tax assessments are typically lower?

If anyone is looking for an update on this I reached out to a appraiser and they recommended a desktop appraisal. They came back to me with one similar comp and told me there was not enough information to give me an accurate estimate. They said they thought the one comp that had sold in February was of similar value and had similar repair costs to the property I am looking at. 

@Kim Meredith Hampton by multi family I mean 2-4 units. I had my agent send me the list they were able to generate, and I looked around on zillow of sales.

@Mike Sedlacek I like the sound of a drive by appraisal and am going to look around for someone who can do that. $150 is a small price to pay to avoid a bad deal. I am nervous to expand my search since the towns surrounding the location are very different, and in one direction it is far from any highways

I reached out to an appraiser and am talking with them tomorrow. Thank you both for your help.

I am looking at a multi family property (2 units both 2 bed 1 bath) that is in need of a septic system replacement. I have talked with a septic company and gotten a range of what it could cost. I have been trying to do the math on the property to make a cash offer then pull out my money once the septic and some other smaller improvements are made. My issue is that I can not find any comps to get an ARV estimate. The town the property is in is much better than the surrounding towns. In the area there have been only 2 multi family properties sold in the last 18 months all in surrounding towns. What other ways are there to estimate an ARV?

@Whitney Hutten thank you for your advice that article was very helpful. I have found some OPM to use and have already spoke with a lender about a Fannie Mae/Freddie Mac loan so i am alreday prepared to refinance when the time comes. (Is there a big difference between the two?) For transitioning to the next tier with a hard money lender will I need to have several deals done with the lender or just proof that I have done deals before so they know I know what I am doing?

@CJ M. (tag isnt working) you are correct this is my first deal.

@Kerry Baird I talked with a Septic installer and he seemed knowledgable about the area and costs for a septic replacement. If i do conventional financing I can do a hold back, but with a cash offer there is no possibility for a hold back and i would have to factor the costs into the offer. So far the one lender I talked to would not do a hold back in "good weather" (as in summer when the work can be done) and my agent was leaning towards the fact that the seller did not have the money to replace it or else they would be able to list the property higher. The septic company said to allocate 30-35k saying the permitting process in the area and the soil make it difficult. Costing potentially up to 42k if other issues are encountered.

Thank you all for your advice.

Ben

I have heard about seasoning periods and that is something I plan on bringing up with my lender.  Say I put 50% down, is there a seasoning period if I went to another lender (or the same one) and took out a second loan against 25% (or more if it appraises for more than the original) of the home? Still leaving me with 25% equity.

I found a property on the MLS that I toured with an agent and want to make an offer on. It is a 1500 sqft 2 unit both 2 bed 1 bath. It needs some work mainly a septic system and then mostly other light cosmetic work. It also has a large storage space that is big enough to be made into a studio. I think with the new septic, light cosmetic work, and adding the studio it could be a great investment. My issue is I only have enough to pay for about half the value in cash. The property is eligible for traditional financing if a new septic system is included in the loan.

What would be the best way to finance this if I am planning on pulling money out of it once all the work is complete? If I go with traditional financing could I still refinance it and be able to pull money out (not expecting to get all of the capital back out but some would be nice) when if it appraises for more? Would it be better to find alternative financing through a hard money lender?

Another avenue I was thinking about was to go straight to the owner and inquire about a seller finance deal, That way I could still be able to refinance out of that to a bank loan. I don't want to step around my agent and would still pay them for their work. Is this an option for a property on the MLS and how could I go about doing this?

If you made it this far thank you for reading. An advice is much appreciated.

Thank you all for your replies.

@Curt Davis I will look into joining a local group, but it may still be a few months until in person meetups are a thing again.

@Lien Vuong I am almost done with Rich Dad Poor Dad, and I see why everyone suggests it on the BP Podcast! I will definitely look into the others you suggested.  I think I will hold off on getting a license and might reconsider it once I have a few deals under my belt. 

@Dmitriy Fomichenko thanks for the tips I am already using some of them!

Ben

Hello Bigger Pockets!

I am a young engineer who wants to get into Real Estate investing. I have been researching real estate investing for the past year, mostly watching videos, and working my way through the Bigger Pockets Podcast. I live in the Boston area, and am looking to invest in Massachusetts. My goal is to build a portfolio of income producing rental properties. I am thinking about starting with multifamily homes in the Lowell area, because the prices there are lower than they are closer to Boston, and then possibly investing closer to Boston once I have a few properties generating income.

As I have said most of my research has consisted of videos and podcasts. I am also interested in reading a few books, but there are so many options out there. Does anyone have some quality books they can recommend that would align with my goals of buying cash flowing rental properties?  I have just recently made a BP account and plan on using more of the resources available on here as well.

One way I have thought about learning more about real estate and my personal market is to get a MA real estate license. I looked into the cost and requirements and it only required 40 hours of class time and can be done for under $500. This seems like a good investment of time and money as it could save me thousands in closing costs and give me direct access to more opportunities. Am I missing something?

Ben Pasculano