All Forum Posts by: Frank Rubino

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $176,000
Cash invested: $44,000

I sold a rental property I owned for many years and used the equity to make a 25% down payment on this single family home in Oklahoma City. I completed a 1031 exchange to avoid paying capital gains tax. The house is rented at $1350/month, providing cash flow of $330 per month.

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

My rental condo was not cash-flowing very well, but had significantly increased in value. So, I decided to do a 1031 exchange into a single family rental home that would cash-flow strongly, and have the potential to increase in value.

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

I was interested in the Oklahoma City rental market because of their strong population growth, and strong economy. I networked with a realtor in the area that I found on Bigger Pockets.

How did you finance this deal?

25% down payment and 3.3% interest 30 year loan.

What was the outcome?

So far, so good!

Lessons learned? Challenges?

The 45 day deadline on the 1031 exchange was a challenge. Finding a quality property manager is a must when investing long-distance.

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

Cassi Justiz of Spearhead Realty, and Two Doors Property Management, both based out of Oklahoma City, have been great to work with.

@Bryan Noth Thanks! I mostly do buy and hold rental properties.

Hello Everyone!

I'm so excited to complete my first 1031 exchange!  I'm selling 9 Glen Ave, Unit 20, Chelmsford MA 01824. I've owned this rental condo for many years, and now I'm finally selling. The Closing is scheduled for later this month, then the clock will start ticking on the 45 day deadline to identify potential properties for the exchange! 

Once the deal closes, I'll have about $110,000 of equity. Plus, I plan to get a 25% down payment mortgage, which will bring my purchasing power up to $440,000. Any advice on what/where I should buy?  I'm leaning towards a 2-4 unit multi-family house. I live in Boston, but I'm open to long-distance investing as well.

If anyone wants to connect, feel free to reach out. Realtors, Wholesalers, Other investors?

- Frank

@Michael Barnhart Thanks Michael! The rent covers roughly 66% of the PITI. I'll probably live there another 1-2 years and then turn it into a 100% rental property.

@Michael Barnhart I want to do a 1031 into a larger property. Not sure what yet.

Investment Info:

Condo buy & hold investment in Quincy.

Purchase price: $139,000

My second property was this one-bedroom condo I purchased in 2013 for $139,000. I lived here for 3 years and then turned it into a rental at $1,375 per month. I currently have it listed for sale at $239,000. The address is 45 Oval Rd, unit 34, Quincy MA 02169.

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

I was already familiar with condos from my first deal and thought it would be a good fit for me.

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

I used a local real estate agent.

How did you finance this deal?

I made a 10% down payment on a 30 year fixed.

How did you add value to the deal?

The property mostly just increased in value due to market appreciation.

What was the outcome?

My purchase price was $139,000, current value is $200-$225k. The rent covered the mortgage, property taxes and HOA fee.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Quincy.

Purchase price: $425,000

I'm house-hacking this 2-family home I purchased in 2016 for $425,000.

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

I had two rental condos and was thinking of buying a third when I realized a house is likely to appreciate faster than a condo. Plus, I was interested in the house-hacking concept.

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

I worked with a local Realtor.

How did you finance this deal?

I was approved for an FHA loan that allowed me to make a down payment of only 3.5%. In 2020, I refinanced into a traditional mortgage which lowered my monthly payment, and now I can use an FHA loan again on a new purchase.

How did you add value to the deal?

I upgraded the heating system to natural gas furnaces. I've done a lot of painting and yardwork. Sometimes, simply keeping a place clean can make a world of difference.

What was the outcome?

As of summer 2020, the value has increased to $475,000-$500,000. I'll probably sell if it reaches $575,000.

Lessons learned? Challenges?

A house is a lot more maintenance than a condo. Living in the same house as your tenant is not always easy. Finding a quality tenant is especially important in this situation. Also, the FHA loan is a powerful tool in real estate investing as it allows you make a much lower down payment - 3.5%.

@Mark Mahoney Just sent!

Maybe you and your fiancée should save up money for a down payment on a duplex/two-family home. Move into one half of the house and rent out the other half. You'll solve two problems - you and your family will have a larger and nicer place to live and you'll break into real estate at the same time. Using this strategy you might be eligible for an FHA mortgage which only requires 3% down.

Can anyone recommend a good hardwood floor installer?  This would be for a property in Chelmsford Massachusetts (about 30 miles north of Boston)