All Forum Posts by: Matthew Cataldo

How much do you think it would cost to to rehab a rental property thats a  3 family and most likely in need of a total gut job. I wouldn't put high end finishes on it.  trying to get rough estimate.

Hello All,

I decided a few years ago that I wanted to get into the real estate business by buying and holding rental properties. Over the past 4 years iv managed to save around 150K. I live in Massachusetts near Boston and properties around here are extremely expensive and I am interested in looking more towards the central Mass like Worcester. Worcester is much more appealing because its the 2nd largest city in MA and has 3 colleges and many multi family units for sale at a much cheaper price than Boston. Iv seen prices range from 250-350K for 3 family units where as in Boston those units go for 1M +

My question(s) as a first time buyer r is how do i determine if its a good deal. What do you experienced investors look at ? The worries I have are:

1.) What research do you trust when deciding if the area is a good neighborhood? 

2.) How do i determine if i know that i can get the units rented out ASAP

3.)  What constitutes a good deal? Is there a certain number i should be trying to get to for cap rate ?

3.) what kind of financing should i do ? Is there a specific one that people typically do? i dont plan on living in this unit either.

4.) Is it a hassle to manage a building? How much should i stash away for unexpected maintence

5.) what do people do when tenants cant/wont pay - i know mass makes it difficult for the landlord to get these situations resovled. What do people do in their lease agreements in order to avoid this to the best of their abilities ?

Thanks for the help.

Hey Everybody,

I am about to make an offer on a house, its Big 4100 sq ft 3 family It has 18 total rooms. The house it gutted down to the studs and i am trying to get some rough estimates on what each phase of fixing it back up will run me. Flooring, Blue Board, Windows, Doors, Electrical, Plumbing, Heating system, Ventilation etc. I plan on doing some of the easier work my self like installing the blue board and flooring and window installation but if anyone has ever done a similar renovation im curious as to what it costs

Thanks

@John Stanford hey john, you are correct those were not real numbers I was just using it as an example, apparently a unrealistic example hahaha. I would be interested in the seminar you teach. My emails on my info section on my page. Thanks !!

I could use all the knowledge I can get !!

Hello again everyone,

I have figured out my buying criteria but now its a question of buying a property in the right area. From someone who is just starting out my knowledge of the market is limited due to lack of experience. I am seeking information of cities and towns in MA that are more favorable and show more upside for buying and renting out the properties. Any Suggestions of where to look first ?

Thanks!

Hello again everyone,

I come seeking more advice from everyone. I have mentioned before that my first investment property would ideally be a multifamily duplex/triplex/quadplex. I have created a criteria of things that I would like to have when I make my first deal. The more I look each thing on my wish list the more skeptical I am of it's overall influence of my decision. For example, if I can buy a house in Medford (popular city outside of Boston) for 400,000 that has 4 units for 1500 a unit. What's the advantage there if I can buy a 4 unit house in Springfield MA (2 hours west of Boston and a less desirable town than Medford based on crime rates etc) for 200,000 at 1200 per month. I suppose my point is how much does "location location location" matter when purchasing a property strictly for renting purposes.

Thanks !!!

@Joe Fairless Thanks for the insight Joe i really Appreciate it. Based off your account you seem to be doing rather well for yourself. $7,000,000 dollars worth of property since 2008 that's very impressive. I am excited to get started but i want to make sure that i buy the right property not just the first one thats available. From someone who rents out single familys etc. Do you take where the building is located ( Town, Near Major Highways or Busy Roads) into account before you purchase them. I know when you buy your first home to live in yourself location is very important im just curious if you have to put the same emphasis on it if your going to rent them out.

Hello everyone,

My name is Matt, I am 23 years old and live in Massachusetts. I have saved up $15,000 to purchase my first investment property which i hope to be a MultiFamily ranging from 2-4 units. I have been doing my research on possible solutions to finance my investment, but i am having trouble deciding on which one is the right fit for me. I have looked into FHA Loans, HomePath Loans, Self Direct IRA loans, etc. I know i don't want to go down the road of using hard money lenders mainly due to there high interest rates. Ideally I would like to find an investor, but at such a young age and with little experience its tough to get someone to loan you the capital necessary to buy a property. My gut tells me to go with the FHA loan because of its low down payment of only 3.5% but iv also heard nightmares mainly because of the mortgage insurance that is required. With HomePath loans its usually around a 10% down payment but the on the flip side you are not required to have any mortgage insurance. If someone could lend a little insight on what they would do based off past experiences if you were in my position it would be very helpful.

THANKS!