All Forum Posts by: Eric Bosworth

@Michael Silver I live in the area and one town you may want to take a look at is Milford. There are a few small multi properties that need some work, but you could definitely make a house hack work. The commute to Framingham would be about 30 mins normally, so not too bad. I agree with @Charlie MacPherson, the drive from here to Plymouth is not something you want to do on a daily basis. I am down that way a few times a month and even with no traffic, you are looking at an hour an a half to Framingham.

If you have any questions about the area, feel free to get in touch.

A few things to note on your sheet. I don't see vacancy accounted for anywhere. Looking at the listing, there are 2 single bedroom units that are under market rent, and the other two units vacant. Even at market rates (which will probably require updates), the building MIGHT hit the 4700 that you are assuming, which is not 1% of the list price. Unless you make a low offer and get a really good deal, this one would be too risky for me. I would for sure ask the current owner to see actual yearly costs and rent rolls.

@Charlie MacPherson One thing to point out though, especially up here in MA, is that heat pump efficiency gets a lot worse when the temps are well below freezing. They are great for moderate weather, but I would take gas any day if it is one or the other. When I was both renting and buying I actively sought out properties with gas.

Gabriel,

Where have the profits from the first two flips that you did gone? Ideally, you would do a flip, and roll that profit into more properties. This should allow you to go from doing one at a time to multiple as the profit adds up from each one.

Hi Darina,

I've been looking at multi properties in the area for a while now. You are going to have a tough time on the MLS as most things seem to be pretty over priced. Also, as I am sure is the case out in Worcester, you have to watch out for the older properties that still have lead paint / knob and tube. I will let you know if I come across any good agents that have some off market deals.

Your story could have happened word for word the same but with another wholesaler instead of the flipper. This has nothing to do with what kind of investor is on the other side, it's just how competition works. I don't think it is fair to take the position that other people shouldn't be allowed to market directly to sellers...

You might want to look up your local REI club and start going to meetings. The chances that you can find someone with an ongoing rehab are pretty good and you would be able to speak directly with them. I have always found that in person interactions have a much better chance of getting you where you want to go.

As another engineer in the O&G space, I would agree with everyone telling you to finish the engineering program. Especially if you stay in the Houston area, you will have a large salary and low COL. Saving a few hundred thousand for down payments can help jump start your REI career and get you past that initial step of trying to gather enough capital for your first few deals. Another benefit is having the safety net to catch you if a deal goes poorly.

Thanks for the advice. It seems like most things I see on the open market are somewhat over priced if any rehab spend is taken in to account. Thy only makes sense at the cap rate that is advertised after raising the rents.

Hello,

I have been looking at some small multi-family properties (4-10 units) and keep coming across the same thing on listings. Owners / brokers will list the property and say that the rents are well below market rate with room to move them up. Am I right to see this as a red flag? If the rents have space to go up, why hasn't the owner raised them already? Doing my own analysis of the nearby area, they usually do look under market, but I feel like there must be some other issues with the property that are keeping the returns low.

Is this a valid concern or should I just be going to see the properties and making that call myself?