All Forum Posts by: John White

@Judd Campbell 

I agree.  Those are rates from my local credit union.  The 7/1 product is an in house product that they would hold paper on.  The 30 year would be Fannie/Freddie, so would be sold on the secondary market.  I've already texted my LO and told him to change it to the fixed product, given that I just don't see myself selling this particular property.

I'm definitely in the hardwood camp for a myiad of reasons.  I believe in the long run, hardwood floors are less expensive to maintain.  Also, most prospective tenants are going to find real hardwood floors to be more desirable (for the look, and if they suffer from allergies).  If you allow pets (like a cat), hardwoods are also an advantage.  Beyond that, when you go to sell the property, hardwood floors are always more desirable to a buyer.

@Jon Klaus 

and @Jeremiah B. 

Thanks for the feedback.  Jeremiah...You make a compelling point on today's cost of money.  This particular property is quite unique (Side by side duplex with 3 beds and 2 baths per side, hardwood floors, and completely updated...oh, and the last house on a cul de sac with almost no other multis in the entire town).  Because of the uniqueness of this property and the fact that I'm confident that it will never be vacant, I can see myself keeping it, beyond the 7 years.  Hmmmmmm.  I might be talking myself into changing my mind on this one.

Good Morning...

I'm closing on my first investment property and opted for the 3.75%, 7/1 ARM, over the almost 1 full point higher 30 year fixed. What do you typically do, when using conventional financing on a deal, and why? I figured the additional $130.00 per month can go toward principal pay down, but would welcome other perspectives. I've never had a fixed rate on the home I live in, as I've never live in a house for more than 5 years. I could never wrap my head around paying for insurance (Which is what I view a fixed rate as) that I know it's unlikely I'll ever need.

@Jabari Brooks 

I haven't personally purchased them, but my understanding is that at least one of the occupants of the property must be at least 55 years old. I suspect that is probably the case in most parts of the country. I personally wouldn't touch them as an Investor for one key reason...your audience for a renter or a purchaser is greatly limited, which is never a good thing when trying rent or sell real estate. Also, like all "communities" like that, there may even be restrictions from the HOA that prohibit renting the properties out at all.

@Kate Robb 

Reading and Stoneham definitely do qualify as north. That said, I'm not sure they're that much cheaper than places like Watertown or Waltham. You're not going to find very many multis in any (I know you're also receptive to SFR) of these towns. If you're set on staying within that 128 belt, it's probably going to be quite challenging to justify an investment property, unless you can really find a superb deal (likely off market).

@Kate Robb 

If you decide to explore areas north of the city and need any feedback, I'm happy to assist, as that's my area of expertise.  If you decide to go south of the city, I'm not the person to brainstorm with  :)

@Kate Robb 

Have you considered purchasing a two (or more) family to occupy as your primary residence and rent out the other units? I don't know what your financial situation is, but that would require only 3.5% down on an FHA loan. It gives you tremendous flexibility, and puts you in a position of tenants contributing (depending upon where you are...significantly contributing) to your mortgage payments. It's certainly not going to happen in places like Watertown, Newton, Waltham, or most other places very close to the city. That said, if you're receptive to moving (and staying in the same general area) that could be an option for you.

Hi Kate...

As someone who grew up just north of Boston, I agree with Eric that this is definitely a tough market.  As I peruse the BP forums, I literally laugh out loud when I read about investors purchasing homes for $50K and under. As you know anything in the greater Boston area would be about 10X that price, and go up from there.  Even most of the surrounding suburbs are very expensive.  There are always deals to be had, but I can tell you that many of the "rules" people post about, as it relates to purchasing an investment property simply don't work in this part of the country, given that it's probably only behind San Francisco, LA, NYC, and Seattle when it comes to real estate costs.

Most "stigmatized" properties do not have to be disclosed, unless someone specifically asks (i.e. "Was there ever a murder committed in this home"?).  I'm sure the rules vary from state to state, but generally speaking, you would only ever disclose things that you have real knowledge of (whether through your own observation or what someone has told you).  I'm not sure this would qualify, given this is really an operation of one's mind, and what a person believes.