All Forum Posts by: Christopher Leslie

@Matt T.

Hi,

I was in a very similar position to yours. I was living at home and searching for a multi in the Boston area as well. After relentless searching (primarily MLS) I narrowed down my only options to Dorchester/Mattapan or Lynn. Also I wasn't able to find any multi's that would qualify for conventional financing in my price range, so I went with a single family in Lynn. I'm 5 months into a live in flip which I plan to roll into a multi when I sell.

I want to give you a heads up this is my first deal so don’t take my words as gospel, I’m a beginner as well.  With that being said I’m a year ahead of you and I’ve learned a ton since I first started out.  A lot of what I’ve learned is very applicable to your situation so forgive my lengthy ness but it may help you out.

Here’s my thoughts on the market that I’ve formulated through observation and personal opinions, not real hardcore market research backed up by numbers.  I think Boston is blowing up and Lynn is going to be a different city in 10 years.  I’ve worked different construction industries all around the Boston area and there is no where for people to buy affordable houses anymore.  I think partly because of the hot market but also because the city of Boston is exploding.  Within the last year I am the 3rd “millennial” in my family to purchase a house in Lynn.  If you can find a good deal in Chelsea or Revere I would scoop it up but I was priced out of those areas.  I can't speak to the cash flow in those areas but more the demand for proximity to Boston.  I think demand for these locations will overcome market fluctuation in the long run.

In Lynn stay away from the Lynn commons in the center of the city.  I bought in Ward 1 on the North West side of town if you look on a map.  There are some nice neighborhoods up there and good proximity to route 95.  Lynn shore drive up by Swampscott is nice too but very expensive.  West Lynn has some good neighborhoods too.  I used to drive the neighbor hoods before I even asked my agent to schedule a viewing because there are some bad areas.

Something to look out for is down payment assistance in those cities.  I was able to squeeze into the "low income" category which qualified me for $5k towards my down payment from the city of Lynn.  After 5 years I don't have to pay it back.

Look into a Fannie Mae or Freddie Mac first time home buyers loan. A former broker who is now a first time home buyer counselor told me to do the same. You can avoid the $5000 start up premium which you have to pay for FHA's mortgage insurance. Also apparently the mortgage insurance is cheaper and goes away when you own 20% of the house, when with FHA you have to refinance to get rid of that PMI. The down side is you need a better debt to income ratio, which I didn't qualify for. If you do go FHA and you sell within 5 years then you get a portion of that $5000 premium returned to you, if you ask for it.

Good Luck!

@Bonnie McCullough

I appreciate the input.  I received some intel from a family fried who is currently a student there, and it aligns with your insight very well.  Regardless I don't get a great feeling about that area.  I think I'll keep it on the radar but slim chance I will do any deals there.

@Steve Bracero 

I have learned a ton about what to look for on a walk through.  I ended up spending tons of time and money on things that I shouldn’t have to worry about.  Examples: New Lally columns and footings in the basement to replace temp. columns, 48 sheets of blue board and plaster in rooms that didn’t need any mechanical work but had bad horse hair plaster.  Old house problems typical of New England.

My next deal is most likely going to be a flip.  My goal is to build a passive income portfolio but I have zero money so I’m trying to work with a partner or investor to build some capital first.  Then I can roll that into a multi.

I saw that you have some units in Worcester county.  I’m sure you understand the old house issues.  I have a question for you.  Have you ever thought of buying rentals near Fitchburg State?  Prices are low and the University seems to be growing (and supported by the state) which makes it seem a little safer.

@Roland Barbeito thank you!

Hi, my name is Chris Leslie.  I am currently working on my first deal.  It began as a live-in flip expected to go for 1.5-2 years but may become a rental down the line if I can come up with funding for my next deal without selling.  I read a couple books and always do my research, but as I learn more and really get into this I've learned it may not have been the best deal out there.  It doesn't fit a lot of great rules I've learned recently from religiously listening to the BiggerPockets Podcast.  The area seems promising for appreciation and I would like to hold onto it if I can.

My goal is to build a strong team to and move onto my next deal using the lessons learned from this first experience.  Whether I flip or build value and hold onto a property, is a question that remains unknown until I come up with a more detailed plan.  I have many of the bases covered for my team but the missing piece is a partner or lender.  In the position I'm in, I can bring zero cash of my own to a deal.  The thought of leveraging my house has arisen but I don't believe I have the equity.  What I do have is a lot of drive, a great critical thinking and creative mind, and building experience.

A little background, I am 25 year old with an engineering degree.  I fell into construction and that's where I've learned a lot of skills.  I was a project lead on residential remodels but recently moved to a job in commercial construction to free up some mental bandwidth to be used for my own endeavors.  I plan to obtain my contractors license once my current project slows down.

I've learned a ton form BiggerPockets already and I am looking forward to learning much more and networking.

Profile picture coming soon.