All Forum Posts by: Christopher Kolasa

Hey thanks Sal Morello you bring up some good points! How long ago did you buy them? What sort of criteria were you looking for? 

Hey thanks Michael Noto! Good news about your clients, granted its only been one year but that's hopeful! I wish continued success to your clients on their investments! Your point about different neighborhoods in Middletown is a good one, and I'm back and forth with the adage: just because it's cheap doesn't make it a good deal. Agreed on Middletown's accessibility, it's a very convenient place to live (driving wise), and if you can get within downtown it could be great on foot as well. How have you seen the market change? Where do you see the most upside in the state? 

Hey thanks Filipe Pereira! I'm glad to hear that you have no legitimate concerns. That is a good point about the undersupply of middle of the road income housing. One thing I love about Middletown is its a great blue collar town for the most part. I think you may have alleviated some concerns, I think I will have to keep digging. Have you been successful in finding deals away from the MLS? Would be curious to know more about your strategy! Thanks.

Hello, I am interested in my finding my first multi-family deal upon the last year and half of research, I have recently kicked it into second gear and on course to obtain my first MF. I work full time, my company has an office in Middletown and Boston, my thoughts would be to owner occupy finance a home and house hack in either of those markets however most of my market research has been in the Middletown, Connecticut for its more affordable price point. As my work enables me to travel often, setting up a home residence would be a great way to begin investing especially since I could get friends to fill my portion of the residence with me.

Boston is quite expensive and positive cash flow seems unattainable unless I decide to add a lengthy commute into my life which seems to be a non option at this point. I have also looked into Glastonbury and West Hartford CT markets however the price points in these markets is already much too high to earn positive cash flow. 

Middletown, CT does not seem to be poised for too much growth with high unemployment figures and slower than national average job growth. However, I like certain aspects of Middletown, including its hipster downtown area, Wesleyan University, Middlesex Hospital and proximity to the river. I am worried I should not invest in a town (or potentially state for that matter) that appears as it is not on the path of growth. I do believe I would be able to ascertain positive cash flow (duplexes and triplexes for 125k-250k with reasonable rental rates $1200 or so per unit for 3BR/1BA) which keeps me interested. From the several properties I've dug into, my results yield positive cash flow. I am concerned with the state as a whole for several factors, high property tax (3.33%), bleak outlook, i am curious to know if this is worth jumping ship and time to look elsewhere or shall i keep digging?

Upon numerous mixed opinions I know certain people that swear away from it and some as Connecticut in general, and others who see its potential. The property prices have been somewhat stagnant I believe, even during the downtown. My question going forward is, is it worth investing in Middletown? How does Connecticut look as a whole. Is it worth looking at other markets in the country? Are my expectations and assumptions accurate? As a long term strategy, am I barking up the wrong tree? Would buying my first residence with owner occupied financing in Middletown, then move to another market for my next MF a reasonable strategy. Im at a bit of a cross roads, any incites would be much appreciated! Thanks in advance. Chris.

Hello all. 

Background: I'm looking to buy my first multi-family rental property, a spacious two family home caught my eye in Rhode Island for about $180,000-$190,000, which should be able to get $3000 in rent a month, it needs a bit of work but is in a great location with upside. I'm looking to invest with my friend/colleague who does not have too much cash, but is a tremendous worker, dependable, and previously a contractor; he would bring lots of value in turning the property around and wants to live in the home while we fix it up and thereafter (for at least a year maybe two). Anyway, partner has a substantial amount of student debt (I believe $60k or so), I'm concerned how this would affect our arrangement, would I be liable for any of his debt? We would likely form an LLC and be co-borrowers on a Conventional Mortgage together. Granted, this would be worst case scenario and only a tragedy would foresee such events *fingers crossed*.

Thanks, Chris

Brian from NJ- With my partner occupying one of the units, we plan on agreeing on a reasonable rent and applying the income towards paying the mortgage, taxes, CapEx, and all expenses and anything on top would go towards a downpayment of the next property, I wouldn't see this as a loss of $18k as mentioned above. It appears the Conventional Rehab loan may be a viable option, thanks for the suggestion, what are the pros and cons of a Conventional Rehab loan versus an FHA 203k loan?

Matt from Ohio- Thanks for ironing out the FHA details, FHA is clearly not the way to go considering my stable financial situation relatively. We will get a Conventional Loan which will be likely be more suited for our needs and aim for the 20% down to eliminate any PMI. I don't have 10k cash lying around so a likely a 10k 'gift' from my bank account won't fly either haha.

Matt from RI- Thanks for sharing your experience, did you invest in RI? If so where, and how the home working out for you? Is it cash flowing well?

Alexander from RI- I have not yet considered a DPA loan, I am actually a bit unfamiliar with it but am eager to learn more!

Brian from NJ- With my partner occupying one of the units, we plan on agreeing on a reasonable rent and applying the income towards paying the mortgage, taxes, CapEx, and all expenses and anything on top would go towards a downpayment of the next property, I wouldn't see this as a loss of 18k$ as mentioned above. It appears the Conventional Rehab loan may be a viable option, thanks for the suggestion, what are the pros and cons of a Conventional Rehab loan versus an FHA 203k loan?

Matt from Ohio- Thanks for ironing out the FHA details, FHA is clearly not the way to go considering my stable financial situation relatively. We will get a Conventional Loan which will be likely be more suited for our needs and aim for the 20% down to eliminate any PMI. Also I don't have 10 grand cash lying around so a 10k 'gift' from my bank account probably won't fly either haha.

Matt from RI- Thanks for sharing your experience, did you invest in RI? If so where, and how the home working out for you? Is it cash flowing well?

Alexander- I have not yet considered this as an option, a DPA loan? I would like to learn more!

Hey Matt, my logic being: using a value of $190k, at paying 5% down or $9.5 versus 20% down or $38k, the FHA loan will allow more access to cash to buy the next property. No credit or DTI issues. I can afford either 5% or 20% down. For rehab financing, I would like to rope it the rehab costs into the FHA loan (or conventional) or consider using an FHA 203k or personal financing.

Yes, I understand that I (or him) in this case would have to live there for a year. Gifting the money to him is an option (what are the limits of this per year?). So in terms of my ability(or inability) to assist him, I thought FHA allowed for a co-signer?

So lastly, on the topic of taking out multiple FHA loans (one at a time), this is news to me, if I get an FHA loan, would I have to live in the property for a year to get another FHA loan on a separate property or if I did that within the first year of residency, I would likely have to refinance? How would someone be able to have multiple FHA loans? Does it even make sense to go with an FHA loan if I should have no issues with getting an conventional loan?

Hello, 

Background: I'm looking to buy my first multi-family rental property, a spacious two family home caught my eye in Rhode Island for about $180,000-$190,000, which should be able to get $3000 in rent a month, it needs a bit of work but is in a great location with upside. I'm looking to invest with my friend/colleague who does not have too much cash, but is a tremendous worker, dependable, and previously a contractor; he would bring lots of value in turning the property around and wants to live in the home while we fix it up and thereafter. 

Anyway, if the home qualifies, together we would apply for an FHA loan (minimize initial investment) with 5% down, this would be BOTH of our first time buying a home and in turn disqualify BOTH of us from being able to use an FHA loan individually.

Is there a way we can structure this deal so I don't have to get roped into the FHA loan with him and thereby allowing myself to use an FHA loan in the future on a separate property? It appears my options going forward are as follows:

(a) Get the FHA loan in my partner's name, structure some sort of arrangement / agreement (legally preferably), get the deal done, split ownership down the line after I use an FHA loan myself on a separate property. This would thereby allow us to work together as partners, and allow both of us to have access to an FHA loan individually, and in the future retain split ownership of this investment property. Ultimately, is this option feasible, I'm afraid it might get complicated, I am also unaware how the loans are structured in the first place and what sort of impact a partnership may have on a loan already in place with the installment of a 'future' partnership (likely we'd have to refinance?);

(b) Get the FHA loan in my partner's name, get the deal done, fix the house up, we figure out fair compensation for myself, he retains ownership and I move on;

(c) Buckle down, form an LLC, get the FHA loan in both of our names, make this property habitable and attractive, and push forward, find the next multi-family property using other financing strategies until we meet our goals.

Thoughts? Any opinions or incite on the matter would be much appreciated. Of course all this hinges on getting our offer accepted in the first place!

Thanks, Chris

Hey All.

Greetings. I'm Chris, currently living out in the great city of Boston hailing from Central Connecticut. Been renting since my days at UConn, now it's time to take action, looking for resources to culminate my first two+ family property purchase whether it be nearby in-or-out of Boston; back home in Connecticut or in a dreamer location like Colorado. Always welcoming new perspective.

-Chris Kolasa