All Forum Posts by: Gary Chlastawa

Hello Everyone,

Closing date is arriving quickly for my first investment property.  A 3 unit in Massachusetts. I've called many insurance companies and a couple agents.  Everyone I talk to wants to quote me for full replacement value of the dwelling, and they all come up with approximately the same value, 650k.  The purchase price is 226k.  All my quotes have been 3k+ a year because of this.  I would like to insure the dwelling for appraised purchase price of 226k.   

Did I make a mistake estimating insurance cost and I need to pay 3k a year?  When I ask about insuring for appraised value I get "No we don't do that" or "you really should go with replacement cost" and the call ends quickly.

It sounds like plenty of people insure their properties for less than full replacement cost, how do they do that?  What should I be saying?  Who should I be talking to?  In short what am I doing wrong?

Also, I live in Connecticut, the property is in Massachusetts, my primary residence insurance company will not insure in Mass. 

Thank you. 

I'll PM you Pablo.

Thanks for the reply John.  I would very much prefer to find a place that has lead certs.  Without them it sounds like the worst case is your tenants have a kid and I'm guessing you would be forced to do the lead abatement.  

There seem to be a lot of people who agree with you about the lead test kits, the reviews online are very bad. 

Hello BP,

I am looking to purchase my first multi family house, one of the areas I'm considering is Springfield, MA.  So of coarse now I know lots of horrible information about lead.  https://springfieldhealthyhomes.org/lead/

I was wondering what happens if I buy a house that does not have lead certs, but is occupied with tenants?  Is it just not an issue or would I be required to to lead abatement if they move out? or if they have a kid?  

Also lead abatement sounds expensive.  Anyone ever do it?  

In general I feel the best thing is to avoid places without lead certifications.  I"m also very close to buying a lead test kit for myself, the house I live in was built in 1940...

Thanks for any thoughts,

Gary 

Hello @Rick Santasiere.  Yes that was me,  I'm going to start calling banks this week.  I was planning on getting in touch with you in a couple weeks.  Looking forward to meeting you again.  

Hello Filipe, nice to know you are near by.  I am getting ready to buy.  I've given myself till the end of the month to sell of the last of the stocks I'm using to fund my first deal.  My credit is good/very good and I will have 50k to fund my first deal.  I'm not sure of the best way to use this money to get started though.  I've read plenty of stories of people starting off I always feel like I'm missing something when I analysis a deal.  I've been leaning towards small multi-family properties.  I would be willing to self manage if I find a duplex property close enough to me, otherwise I would look more at having a property manager.

I'd love to talk more with you about real estate some time.  Being that I live in CT, but am just a few minutes from the Mass border, do you think I should be focusing on one state over the other?  I already work in MA, so I'm already filing two state tax returns.

Hello Everyone,

My name is Gary and I live in Suffield CT.  I have been thinking about investing in real estate someday for a long time, now that time has come.  I am looking to do buy and hold type deals that can help provide income to improve my retirement in about 20 years from now,  currently 33.  Damn right I'm nervous, but I can't keep reading about this forever.  I have no practical experience in real estate investing.  All my previous investing has been with stocks.  (I would buy QCOM right now at 53.90 and GILD at 73.20)  

If anyone on here needs an extra set of hands in the Springfield MA, to Hartford CT area feel free to ask me, I'll be glad to help out if I can.  I work full time and am married with a young daughter.  My wife also works and when she does it means I'm home with my daughter so I need time to line up baby sitting with grandma before I can help out.    

My goal is to get a property producing cash flow before kid number 2 arrives.  (Maybe a year?)

Also I did add a profile picture, guess it takes a couple days to get approved...