All Forum Posts by: Clinton Holmes

Hello BP!

One mistake I think many new landlords, myself included, make when starting out is that they don't think about WHO they want to rent to and WHAT unique value / amenity they have to offer those renters.

This got me thinking, what are the different types of renter profiles and how are they different? Are some more valuable than others? Also, how are their housing needs different?

For example, if we just compared across major U.S. cities, how do the types of renters in Boston, differ from those in San Francisco, Washington, Houston, Phoenix, or New York City? Is their any difference in their needs, both physically and mentally?

So consider this a survey of sorts and help those at BP by answering the following questions:

1. What type of people do you rent to? Why?
2. What do you differently than other landlords to attract this people?

Thanks in advance BP!

-Clinton

Hello BP!

It's a rainy day in Boston and being cooped up inside has led me to start thinking about what is the best strategy to finance my second rental property.

I'd prefer it to be a multifamily (MFR) but am open to single family (SFR) or condo if they have some unique opportunity to them.

Here is what I came up with so far:

1. Save up enough to put 25% down as an investment property and try to get traditional financing. I think this might be difficult given I already have one mortgage in my name.
2. Home line of equity on my current property. I think this could prove challenging too, because I only put 5% down on the 2 family residence I am now living in and I don't think a bank will give me an home line of equity when I already have such a low stake.
3. Re-fi. Same challenge as above unless there is considerable appreciation in Salem, MA.
4. Partner and form an LLC. There are 2-3 friends / family members that I'd be comfortable doing a deal with. I was thinking we could form an LLC, all put money into it and have the LLC buy a property. Question here is can an LLC get financing or will it have to buy in pure cash?

What do you think of these options? Are there any financing strategies you've heard of or used to buy your second rental property?

Thanks in advance for the help BP!

-Clinton

Originally posted by @Aaron Montague:

@Bill Gulley

Nice work there Sheriff!! The rest of the country could have used folks like you chasing off the folks selling no doc, no money down, interest only loans to immigrant families. East Boston is still digging out of that mortgage hole.

East Boston has to do more than just dig itself out of that mortgage hole. Besides the airport, there is no reason to ever be over there. Sellers over there are way off in their pricing too. They think that just because Eastie might be the next Southie that their homes are worth Southie prices today. I was talking to an owner about an off market 3-family in Maverick Square, all 1bd / 1ba, and they were firm on there 565k price.

The Boston Market is just crazy right now.

-Clinton

Have you thought about some sort of rent to own or owner financing to try and get the negative cashflow to zero? Just an idea Clinton

Hey Justin,

I know Trulia has a feature where they will email you open houses matching the criteria you set. You will need to sign up for an account, but it is free. This is how I first found some open houses in Boston.

You could also get friendly with a buyers agent and ask them to send you a list of some open houses in the areas your interested in.

Good luck with your search,

Clinton

Hello Julie!

I'd recommend David Haimi. He works at Lieberman Law Offices. He is a really savvy lawyer and gets what investors are looking for. I've worked with him a few times now and have never been disappointed. If you'd like, I can connect you two via email.

Goodluck with the search and let me know if you find anyone else :)

Clinton

Hi Jenny!

I'm just starting in the real estate game so I don't have a property manager that I can recommend. I do have a question though? Why doesn't she want to sell it, considering how hot of a seller's market Boston is right now?

I'm asking because if the property manager is just handling that two family for her, and she wants a high quality one, then the fees from the manager while likely whip out any cash flow she has. It doesn't seem like there is enough scale to make the investment in a property manager worth it. Is she expecting high appreciation in Roslindale?

Best regards,

Clinton

@Ann Bellamy

Clever! I need to remember that trick. Thanks Ann!

Hello BP,

I have a small two family that I'm going to slowly update. Do you know any handymen / contractor you'd recommend? The jobs would start small (installing a new security light, repairing a bulk head, installing some new gutters) and get larger (kitchen and bathroom update).

If there is someone you'd recommend, have them message me here with their email address / phone number and a description of some of their past work. If I think they might be qualified, I will give them a call.

Thanks in advance for your help BP!

-Clinton

It sounds like you need a solution that requires an interested applicant to overcome a small hurdle in order get the information they want. For example, maybe on your for rent sign, you remove the phone number and add a simple brochure. The brochure will include the answers to the questions you are asked most frequently and your phone number incase they are still interested in applying. By doing this you should weed out a most of the sort of interested people because they are too lazy to stop and pick up the brochure. Then those that do call, you know will be really interested people. Best of Luck, and if you try my solution please make sure to let me know how it goes :) Clinton