All Forum Posts by: Dan K.

Don't forget, you can force appreciation through renovation, additions, etc. When evaluating properties, if there is a value-add possibility you can change aa .5% property into a 1+% property.

I was just discussing this with somebody and totally disagree. I would prefer 4 doors in one property making $14,000 a month versus 20 doors with an average rent of $700 each (presumably across 5-10 separate properties). With fewer doors you have fewer kitchens, bathrooms, water heaters, roofs, etc. In addition, you have fewer tenants. Ultimately maintenance on those 4 high-end doors is going to be a lot less money and time than the 20 lower end doors. 

The downside is scalability. If your average rent is around $3,500 a month per door, the acquisition costs are going to be very high. You can pick up more and more $700 a month rent units faster than more expensive units.

As others have said, it totally depends on goals. There is no generalized right answer.

I've been researching connected / "smart" meters for a long time. There are a lot of products out there, but few reviews.

Besides @Charley C. who is using Kamstrup, does anyone else have experience with connected submeters?

@Wilson Tao -- I'd see it as a big red flag. An offer of a few months is one thing, but a year is strange. You need to ask why.

All and all you've got a great problem to have! It's challenging to talk to non real estate people about all of the equity you have in properties and the fact that you want that equity to make you more money. They'll roll their eyes and think you're an a-hole for talking about how it's a problem to have $0.5m in equity!

As everyone has said, local banks are the way to go. Just a few years ago, I had the manager of a local bank take an Uber to my house so we could sign some paperwork. The experience from a good local bank can be amazing.

And @Andrew Beauchemin said, you're going to be in a commercial loan product with a higher rate (higher than current residential rates). Also, no offense, but from the sounds of the amount of equity you have, it might not be that big of a loan to get a bank excited. Also, with commercial loans the banks tend to be stricter about capital improvement savings and things like that.

My point of view -- it really comes down to price points. SFH's in Boston metro west generally sell very quickly under $1m. I have started to see some softness in multifamilies in the Cambridge area in the $2+m range.

Note: softness doesn't mean a crash -- it just means that there are fewer offers accepted within the first few days.

I completely agree with @Charlie MacPherson and I would go a step further and suggest only considering small, local and regional banks. In the past I have put together a list of approximately 25 regional / local banks in the Boston area. Talk to them about what you're looking to do, what your income is, etc. I have found that I've been able to negotiate with banks once I have a few offers.

One important thing to note however, I've only done this once I had a deal in hand. Getting specifics without a deal isn't easy.

Additionally, a bank isn't going to want to feel like you can't afford the extra 5% -- at the end of the day you're going to need cash for repairs and what not. You could try positioning it to a bank that you're going to put that money into the property, increase the value of the property and make the loan more secure.

@Alan Eisenberg -- If the goal is to get to 100 units (and if your a Grand Cardone follower and make that 1,000 units), I would suggest you stay in an area like Albany, Troy, Schenectady.

A property in the $1.25 to $2m range in the Boston area for example isn't going to get you very far. Additionally, unless you BRRRR, you're not going to be able to get enough cash flow from the property to continue acquiring more properties.

Boston Real Estate Guild is good. MassLandlords also has events.

You can find a lot of info on BP.

@Alan Eisenberg -- If you're looking at spending $1.5m-2.0m, with 30% down you should be able to secure a property that is between $5m and approximately $6.7m. In that range, at least in the Boston area you could potentially purchase a 10+ unit building in a decent area.

Personally I would look at a very good area, like Boston, or a larger complex in the southeast. Additionally, if this is your first RE, I would either start smaller, make sure you have an A+ team (and pay them accordingly -- possibly giving them equity), or find a partner.

Furthermore, if you are considering properties between $5-$6.7m, banks are going to expect you to have experience.