All Forum Posts by: David Menapace

@Nicholas Aja same with our place. Guests LOVE the fire pit. We just have guests supply their own wood. This does two things 1) it saves you the cost and 2) ensures they won’t build the fire too high as they will be forced to buy more wood.

@Tarik Turner rehab will take about 3 -7 months depending on size and scope. I’ve begun to find lenders which is great! Seems like the typical seasoning period is 6 months, though I’ve found one with no seasoning period.

@Melissa Silk hi Melissa, I might have a couple leads for you in Holliston if you are interested.

@Lien Vuong thank you for your response! So for this scenario, your recommendation would be to look for a commercial loan?

Good Day my New England Friends! I am based in Massachusetts. I have a vacation rental property in Cape Cod and I have the itch to grow. My strategy is to build my portfolio by following the BRRR method for vacation rentals in Cape Cod, and Multifamily long term rentals in Southern Massachusetts. For the next few properties, I plan to use a mixture of equity in my current home and a hard money lender to acquire the properties and perform the rehab. At the end of the renovation, I'll be looking to do a cash-out refi with a portfolio lender that will do LTV, not LTC.

Does anyone have any lenders that they've used in Massachusetts that they would be comfortable connecting me with?

Thank you all!  Be well, stay safe, and keep crushing it!

-Dave

Investment Info:

Single-family residence buy & hold investment in Dennis Port.

Purchase price: $260,000
Cash invested: $65,000

Wonderful 2BD/1BA vacation rental property in the heart of Dennis Port on the Cape. Purchased with all furniture included, its been a wonderful investment property the last few years. We rent through Airbnb/VRBO and manage the property ourselves.

What made you interested in investing in this type of deal?

We initially wanted our own vacation home, and had an interest in renting it out over the majority of the summer to help cover the mortgage.

How did you find this deal and how did you negotiate it?

We bought this home in the middle of winter. We found it right on Zillow. We were fortunate enough to be the only interested party to show up for the open house due to inclimate weather. We put an offer in later that week and the rest is history.

How did you finance this deal?

We financed this deal through a traditional 30 year bank loan, which we quickly refinanced to a 15yr loan due to the favorable interest rates.

How did you add value to the deal?

We had added a new roof, redone the floors, painted the rooms, and added a gravel driveway.

What was the outcome?

From this deal, we've now got the itch to continue to find deals in the cape (particularly the Dennis Port area), using the BRRR method.

Lessons learned? Challenges?

If I could go back, I would have only put 10% down, instead of 20%. I was would held onto the cash for future investments. Now that it is all said and done though, I'm still very happy to have gotten this deal.