All Forum Posts by: Doug Dias

Thank you, Martin! What missteps (if any) did you take on your next deals that would be worth noting? I know mistakes will happen, but I would love to be more prepared to avoid them. 

I love that advice, Brian! Thank you. My place is a 4 bed 2 bath, and I certainly saw much demand once it was posted and landed really great tenants. In the few months since we closed in Feb, it seems like similar deals have almost disappeared in Worcester. I think maybe folks are picking them up at auction?

Thank you, Joe! Even though I worked my butt off to get this deal done, I can't help but feel like I "got lucky" a few times along the way. I'll just keep working hard and listening to the experts and hope that the good fortune keeps coming. 

First - this community gave me the confidence to jump in on my first investment property. Thank you all for the generosity in sharing information and giving advice. 

I know this post will likely seem like a brag post. I am sorry if that is the case, we're just very excited about the results of our first investment property! It was a successful BRRRR of a single family home in Worcester, MA.

We had about $50K into the deal, and we were hoping to remove all $50K to jump into our second property. We are scheduled to close on an 80% LTV cash out loan on the 15th of October and we should be handed a check for about $90K on that day! We now have a property appraised at $315K, with 20% equity still in it, positive monthly cashflow, and $0 left on the deal. On top of that, we're getting an extra $40K over our initial investment after all out of pocket costs are factored in (including closing costs for the cash out loan).

We are thrilled about this, but we are very much still rookies and I want to make sure we avoid over-confidence issues for property #2. The results have left me elated and wanting to do this again ASAP. I don't gamble at all, but the feeling is reminiscent to what one may feel after hitting a "jackpot." How do I stay grounded and focused to avoid making a mistake with property #2? I'd love to hear from more experience folks about handling emotions after a successful deal. 

FYI - our strategy is very simple: Buy single family properties in Worcester, MA that need rehab, find quality tenants for them, and hold them forever.

@Katie Miller

$500K would be invested in equities with a total portfolio dividend income target of 5%.

$500K would be used to purchase and BRRRR five properties.

Cash out refis proceeds, rents, + equities income would continue to feed the real estate business.

Update: Got this rented in 20 days. I was only showing on Saturdays due to Covid-19 and a busy work schedule. 18 showings and over three days got the job done.

Thanks @Andrew Goduco! Yes, we found great tenants at our $2,200 asking rate. They're moving in next week. I credit my GC for doing a great job that resulted in many folks loving how the property looked. 

I worked with Allanach Mortgage through the Somerville Municipal Federal Credit Union, the best little credit union in Boston. Allanach made me jump through many hoops, but they did get me the 80% rehab loan that made my first deal possible. My rep there was really good and patient with my newness.

While they did an 80% rehab loan, they do not do an 80% LTV cash-out refi. I have called just about every credit union in MA looking for one of those. I had found one, but Covid-19 and lending concerns made them go to a 70% product only on cash-out refis. My seasoning period isn't over until August, so I am hoping things start to ease up again by then.

Best,

Doug

@Nathan G. - Thank you for that feedback, Nathan!

@Kenneth Garrett Thank you, Kenneth! I’ll see how things go this weekend and go from there. I’m thinking I’ll wait until May 1st and then drop the rent if no qualifying applicants come in.

@Dan Travieso - Thank you, Dan! I’m hopeful that this weekend will be the one. I’m getting so much interest and people seem to love the property, but I’m feeling concerned that applications aren’t coming in.