All Forum Posts by: Brian J Allen

it all depends on the condition of the property.  There are places for $500k with lots of deferred maintenance and others that are in great shape.  I would want to have $15k available on most places, but if the roof is older the roof alone is $15k.  Older heating systems can be up to $10k per unit.  The key is to get a place with good bones, so what you are addressing is cosmetics not electrical or plumbing upgrades

Give Wendell Butler a shout.  He is great at working through these low down payment loans.

I agree, do not chase COC. Look for something that has value long term, and incrementally raise your rents. If you spend all of your money fixing things, you will never win. Take a quick look at this.

https://www.biggerpockets.com/...

You should also get Estoppel Letters from the tenants that verify the current state of their tenancy and if they have a last month's rent or security deposit being held.  This helps you to understand where they are at this point in time prior to purchase.

It will be super hard to buy a cash flowing 3 family in Worcester within 45 minutes to Sudbury.  This limits you to the East side of Worcester and there isn't much inventory.  Currently there are 77 multi listings in Worcester and very few, 13 under $400k, and only 4 of them are 3 families.  It is hard even under $450k but you have a shot if you are willing to do work.  The best of these is 30 Esther St, which has NO PARKING, and steps to the first floor for $400k.  at $450k things change a bit and at $500k things change dramatically.  Keep in mind that the cost of borrowing $100k more is in the neighborhood of $500/month and your neighborhoods, parking and size of the property and building change as well which changes the $$$$ you can make.

I agree with Jonathan about using the WE.  There are always people behind the front man.  You can be accomodating and when you have issues, always say I will have to check with the owners and get back to you.  This gives you time and them time to step back from anything contentious and you can delay giving them a response.  For example they say their fridge is having issues.  You can say i will check with the owners and get back to you about fixing or replacing it.

Congrats again.  Good location, solid property.  Good luck with the adventure

Thanks for the shout out!  Perhaps you can share some of the difficulties you encountered and the value of having a Buyer Agent representing you!  Congratulations

There are a lot of deals all over New England.  But the most important thing is to find something that works for you.  Keep in mind you are likely looking for both CASH FLOW and APPRECIATION.  Some markets offer one or the other, few offer both.  Over time Worcester, MA has had a solid mix for those willing to wait to buy appropriately and hold long enough.  Keep in mind that management eats into a lot of your income.  you could pay $225/month for management of a 3 decker which is $2700/yr.    If you find something close to where you live and reduce that management fee you can make more money.  

another trick you can do to get rid of humidity is to get a hybrid electric hot water heater that will work as a dehumidifier.

. You can also use a normal dehumidifier and keep it on constantly and draining into the whole house P trap, or use an ejector pump like on your FHA heating system to pump it outdoors