All Forum Posts by: Dan Smith

@Thomas Hickey - to your point, a good landlord needs to screen his/her tenants very carefully, I definitely put most of my effort into that part.  But I don't think that there's a way to go overboard in that department!

@Thomas Hickey, I currently own 1 three family in Haverhill, MA. 

I am a big fan of the area and there was plenty of demand for my units. We currently live in one unit and rent the other two. Our tenants have both been completely acceptable and have both already signed for a second year. There is a good mix of properties in Haverhill, ranging from size and quality. And there's a decent amount on the market right now as well, (I'm always watching MLS).

No specific challenges to Haverhill that I can speak to right now though.

We actually got a screaming deal from Home Depot, they run specials pretty frequently.  I would also just put in a thumbs up for Quartz, it's more durable than Granite, slightly more expensive, but worth it, if you ask me.  You don't need to reseal Quartz, like you're supposed to with Granite.  Can't trust that tenants will take care of your counters the way they are supposed to.  The warranty that we got was also pretty good looking, though we haven't had to use it.

@Thomas Barksdale

I live in Bradford, MA myself and currently own one triplex (Three family building).  Reading your post made me feel worried about success for you as it seems that you haven't done a whole lot of research on the topic...

Correct me if I'm wrong, but it just reads as though you're not that familiar with landlording.  MA isn't a forgiving state to just pick it up and go, especially without familiarizing yourself with the intricacies that come with this state. (Rules, Laws, Best Practices)

The other problem that you are going to run into, is that 200k won't get you anywhere close to a duplex or three family in Haverhill.  We bought ours in December for 400k, and the market has only climbed since then.  You may want to focus on getting your finances figured out before going into this game.

It sounds as though you are hoping to get into Landlording as a way to have someone pay for your house, that you can't necessarily afford, that would be a huge mistake in my mind, as you will have serious issues in the times that you don't have tenants...But maybe I just play on the conservative side of things.

A different way to start would be to try wholesaling, or helping other investors find deals to start learning from them as to what is needed to be successful in this game.

@Alan Jeskey Welcome aboard!  This is a great resource to utilize, glad you made an account:)

My plan is to start a property management company down the road, once I've accumulated a few properties myself that I will be self managing.  Glad to have your knowledge on the forum!

@Steve Bracero - The good news is that you can certainly still find property to cash flow positive with the PMI, but I would rather put down 5% with no PMI right off the bat, vs 3.5% with PMI until you hit the 20% threshold.

With the property I bought in December, as soon as I can refi the PMI away, I'm essentially giving myself another $300 a month! That's not chump change.

@Steve Bracero

Mass Housing is a loan that some people can take advantage of.  There are income requirements that act as limitations though.  My fiancee and I did not qualify for it, as we make too much.  The income caps for the Mass Housing loan can be found at this link: Mass Housing Limits by County

The rest of the process would be similar to an FHA loan, though I believe that the Mass Housing loan would require you to take a first time home-buyers course? I'm not 100% on details, but it's certainly something worth looking into as a first step! PMI is a killer...

@Andrew Spencer, you will want to speak to a mortgage broker to see your options. If this is your first time buying a property, you will likely be able to take advantage of the FHA financing option (as low as 3.5% down), but there is also a Mass Housing loan, that is 5% down, with no PMI!! (this has an income limit)

Your first conversation should definitely be with a mortgage lender though, they will help you know where your finances need to be and will get you pre-approved for an amount within your price range.

Just be careful and don't bite off more than you can chew, lenders didn't learn from the housing bubble and are still wayyy too happy to give you a huge loan that wouldn't make financial sense...

I can second the sentiments on Haverhill by @Rob L., @Account Closed, and @Tim Wilkinson.

My fiancee and I just bought our first 3 fam in the Bradford area, and we have already decided that this is the place we plan to invest in the most.  Let me know if you would like to connect further about Bradford/Haverhill :)

I would be interested in hearing more about these as well.  I haven't had to go through this yet, but it's always good to know before hand!