All Forum Posts by: Erick Sembrano

@Michael Vazza will post an update by next year and see how our plan pans out!

@Yonah Weiss Thank you and for tagging Lien Vuong! Also perhaps you can help us with the cost seg plan - I'd like to get in touch and hope on a call. 

@Tom Wagner Wakefield does not seem to have STR laws (yet). I'm sure it's just a matter of time that they will come up with one, just like the other neighboring towns / cities such as Boston, Burlington, etc and likely to be more on the restrictive side. Just to note, there's several active STR's in the city. Our plan is for a temporary STR just for the year. Having said that, I would be very careful and personally stay away from a long term STR play in the Metro Markets (even for those with laws already in place).

@Lien Vuong We're excited to see how it plays out! You and your network are all awesome! Thank you!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $825,000
Cash invested: $41,250

We bought a single family home with an ADU north of Boston in the town of Wakefield MA. We will renovate the fix up the first floor additional dwelling and plan to rent it out as a STR for the rest of 1st year to maximize the return of our renovation expense against our W2 taxes via the Cost Seg / Bonus Depreciation. Will find out how well we execute our plan. The long term play would be to pivot to MTR afterwards.

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

We really want to move into a house with a bigger space, parking lot, yard, but still have the extra space to use as an investment to offset the expense and mortgage.

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

We found the house on the MLS and made an offer on it. We paid about 45k above asking price .

How did you finance this deal?

Conventional 30 yr mortgage with 5% DP.

How did you add value to the deal?

Cosmetic upgrades for kitchens and baths, new paint and fixtures. Also updated the yard and landscaping.

What was the outcome?

Will update on the outcome on how well or not as well we execute our plan.

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

Our Investor Agent for this property is Lien Vuong and our lender is Michelle Guertin of Bank Five.

Congratulations on your second House Hack! Seems like you're getting value of acquiring properties to house hack with an ADU.

I really like the house hack method to start off your investment journey! Congratulations @Joia B.! Did you rent out the accessory apartment as a LTR? 

Thanks for sharing your story and experiences. It's really helpful to hear about other investors learning experience. Great post @Kyle Curtin!

@Karl Butenhoff Thanks for sharing your story and experience. I am quite familiar with MN as I lived there prior and worked at the UofM. Happy about how yours worked out but seems like there's potential reward for pursuing the elevation certificate alone and if things aligned much better can even get the flood insurance decreased or even taken out. Hope things are well in MN and I still go back to MPLS frequently to visit family. 

Thank you @Jonathan Small for the insights and I should keep it in mind. Good though about having the PM and Realtor having a relationship. 

@John Mocker this is really helpful and appreciate your advice. Thank you!

@Douglas Snook Thank you for the information you shared and will keep this in mind. 

@Andy Rousch Thanks for your share. I should explore how HELOC works and if it will in my situation. Also should look into asking many banks about loan programs and how they can help.