All Forum Posts by: Edward Gaeta

You definitely have a leg up on alot of people at the moment so kudos to you and your wife. I'll tell you what my strategy would be so take it with a grain of salt but here's my experience:

Look for distressed multifamily properties (the more units the better) that you can handle some of the repairs on. Get a good deal on the acquistion and focus on your monthly expenses because you're still working full time and in the saving game, so think about accelerating that. Tip: underwrite any deal as if you're not living there and be conservative about the most realistic rental numbers. 

Once you buy the multi that you can add value to, paint/bathroom/kitchen or add bedrooms to. Start the work to turn over units to get premium rents, once thats done rinse and repeat for the other units and the one you're living in, refi out and into your next house hack. Even better if you make the numbers work on an FHA loan.

The one caveat is, with margins so slim in this market and NH is blowing up, you need to underwrite your refi numbers very conservatively and for 80% debt figures on the new appraisal value, esp if you're not living in the building. It's likely you won't get all your money out in order to maintain cashflow, DSCR, but you'll be earning equity and have probably saved enough for the next one by the time the first is finished.

Hi Linda! 

Starting out this is an amazing place to employ this strategy. As a few people have said here, Boston is a very compressed market when it comes to returns on cash but it has very strong appreciation if you buy in the right areas. Just remember, if you're house hacking in Greater Boston it might be unlikely to cash flow but you'll off set your mortgage payment in a big way to live subsidized, save up and do it over again. Once you move into the next one you'll have decent cash flow and possibly be able to refi some cash out as it appreciates so less cash out of pocket for the next DP. 

Note: make sure you calc the taxes correctly because as you're living in the property you'll get residential exemption in most cases...but then when you move out make sure you're prepared for that to almost double. 

Feel free to reach out to talk shop any time, been investing in Boston for over 5 years

Investment Info:

Other fix & flip investment.

Purchase price: $900,000
Cash invested: $1,000,000

Land Deal with the intention of building 12+ residential units with Passive House construction guidelines

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

The quality of housing available in the city is deteriorating and changing smaller scale development through incorporating new building techniques is at the forefront of our company.

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

Cold call and negotiate directly with seller.

How did you finance this deal?

private money after zba approvals

How did you add value to the deal?

complete redevelopment

What was the outcome?

TBD

Lessons learned? Challenges?

learning something new everyday and interacting with different city offices related to energy initiatives

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mulcahy Capital, Thoughtcraft Architects, and I brokered the deal myself and will sell the residential units myself when completed.

Investment Info:

Large multi-family (5+ units) other investment in Boston.

Purchase price: $300,000
Cash invested: $300,000

10,000 sq ft Land development deal.
14-17 unit ground up construction.

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

The Boston market for retail is so over priced creating new product provides the best returns whether it be fix and flip or buy/hold

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

Direct to seller, drove by the land while completing a neighboring transaction and found owner's number in the whitepages, called and came to an agreement

How did you finance this deal?

Cash and Commercial financing

How did you add value to the deal?

Adding all the value, brought the deal and putting the necessary people in key roles to begin successfully.

What was the outcome?

Beginning stages

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Michael Mulcahy, Mulcahy Capital (previously Finance Boston). Lender
I am personally the broker on this deal and actively work for acquisitions

Congrats @Mark Nolan, Glad we got to work together on it (Had to throw that in there). 

@Son D. The city council has been trying to do this for a long time and has now gotten planning and the phases ironed out. Over the next 5 years when this is being developed much like the Washington Village in South Boston appreciation will definitely grow. I'm personally looking into larger multi's in Revere now though rents are lower than the city by about 30% at market, and there are many more families so deleading is a huge undertaking upon purchase for these older properties. Demand will be much higher when the project is done so end of the story, I'm trying to capitalize on that development now.

Hi All, 

I am a new investor shopping and spending alot of time looking for the best first deal. I understand the process but I'm looking for some opinions from people locally about two areas specifically, Worcester and Providence. 

I am singling these out because first I can buy with the best starting equity position or with a standard down payment and enough wiggle room to fund improvements. I've been looking at 3+ unit multi's in the better areas of those cities for buy, repair, and hold rentals and after doing the math most would cash flow $150+ ea. 

My numbers have been estimates but also worst case scenarios, so what I'm wondering is how have experiences been in those areas? Why have people generally avoided them in the past(from what I'm hearing personally), and if those are basically fruitless endeavours to get involved with the properties there? The ultimate end goal is decent cash flowing units. 

Some general advice would definitely be appreciated by any and all!!

Happy Hunting, 

Edward Gaeta

Hi @Anthony Callahan,

I am 26 and have been seriously interested in Investing generally for 3 years and Real Estate in particular for the past year. Found the podcast and a few investors that I currently work with so that drove me to get serious about it. 

Keywords are setup and Thank you all for the advice, I really like networking in person and this site is already an amazing resource. 

Thank You Rob! 

I'm about 75% through the podcasts, they are extremely helpful and now going back and listening again. Taking notes and writing the points down has helped drastically. 

I had planned to go to the REIA meeting on Apr 16th! Which are you associated with?

Thank you for commenting @Robbie Reutzel

Hi Everyone, 

My name is Edward/Eddie Gaeta and I'm new and jumping into property investing head first. I have read countless books in the wealth building, investing, and general self help and it's to the point where I need to experience it to really learn. 

I am from Boston and am an Engineer by trade. I am also a Crossfit Instructor everyday after work and train every morning. I'm very dedicated to my health goals and to my success. Some of those goals are to own 5 rental properties and wholesale 5 within the next year to create a passive income to go bigger and farther with this part of my life. 

I found this through searching for investing podcasts on itunes and have been on since. 

Hope to meet some great people here!!!

Thanks, Eddie