All Forum Posts by: Daniel Consalvo

Brian,

I am a but and hold investor (central ma) who built a portfolio on prices and interest rates of the past.  The recent high inflation rates over the last several years have increased my income and equity beyond my initial projections at the time of purchase.  But...If the average renter is being left behind, if their income can't stay in line with the cost of living, I fear it will lead to a larger crisis and continued intervention/regulation by government. 

I would prefer to return to more predictable inflationary increases in values and rents so that this investment vehicle of REI can remain intact. Preserved for future generations as a way for the average income earner to build wealth over time and provide a clean, safe place to live for other people.

We need more units constructed. Not sure how we get there.

Dan C

I've been investing in Northern central MA since 1997. Brian is spot on! Be careful right now and only move forward with something that makes since with ultra conservative estimates. There is always a "DEAL" put there but Central MA has never been where it currently is as far as thin deals. since you are new, be sure that you first shot fired will result in a gain of both money and experience. You will win in this REI game but you need to stay in the game for that to happen. Be patient!

Good Luck

Christy,

You have a lot of good advice in the responses thus far. I wouldn't look at a property "cahflowing" as a metric for criteria. ALL properties 3-4 units should be cash flowing without you occupying a unit in the central MA area. If they don't I would stay away because you would be floating all upkeep and repairs for the unforeseeable future. The question is what is your cashflow as a return on invest (ROI) when compared to the amount of your money invested into the property (downpayment). You might see it referred to as "cash on cash". Once you determine the cash on cash ROI you will be able to compare properties in different areas and then make a decision of what works best for you. Of course there are more factors to consider but this is a good screening tool.

Having the option to borrow 500K instead of 400K will improve the number of potential investments which would be helpful in this competitive market. Purchasing a 500K vs 400K property will most likely result in more nominal cashflow but (sometimes) a lower cash on cash ROI. You are an investor now so the more cash you keep the more properties you can acquire. Use ROI as a comparison metric not nominal cashflow.

That being said, I wouldn't deplete my reserves to a point of risk.  Reserves are a very important part of investing. If you  invest in real estate with a commitment to improve your knowledge and processes you will find success.  Reserves allow you to STAY IN THE GAME.  If you make a mistake or have an unforeseen issue and not enough reserves, you could be forced out of investing.  The most important thing is to STAY IN THE GAME. Holding and acquiring properties over time will guarantee you a win.

Are you going to rename it the Rosebud? How much a night? Or is it priced by the week?  We have one in my city. Population 45K.  I'ts been there forever so my guess is there is one for every town.  They must perform or they wouldn't exist! I like your ready, shoot, aim mentality.  It's just a matter of if your the guy to run it. If not you can pass it to the next investor.

Good Luck

Thanks Zachary!

I'm thinking of starting a local REI group. What are some ideas, activities, themes or formats that are beneficial to members. Any ideas would be greatly appreciated.

Thanks in advance!

I am acquiring a 4 unit building in West Bolyston Massachusetts next month. Does any one out there know of a good property manager who covers that area.

Thanks,

Dan

This isn't too hard to figure out.  Small business including mom and pop are not represented in Washington.  Only well credited big business (donors) will survive.  They took the single family last crash, now they want your small multifamily.

https://www.theatlantic.com/te...

Good Luck 

I applied but it mentioned just a 10K loan. No info on anything more than that.

@Shawn Krieger

Thanks for the response!