All Forum Posts by: Holly Frongillo

ISO of a knowledgeable and communicative agent in the Gilford, NH area that has experience with Airbnb properties (bonus points if they have a network of property managers etc. for those properties). Does anyone have a recommendation, or are there any realtors that fit that description here?

Highly Recommend Nick at N. Latuga Plumbing and heating. very hard working and honest, and fairly priced. I've only worked with him in southern Worcester country / Dudley area but it's definitely worth asking if he will come to Worcester. If not, Sean at Comptois Plumbing & Heating, who Nick often works with is also great. 

There are more options than just FHA or Conventional. Whichever property you're going to use as strictly an income property would not qualify for FHA due to the residency requirements that come with that loan type.

You can look into a commercial loan that bases the numbers off of the income potential of the property itself and not your personal income. However, most of those loans do require a higher down payment of 20-25%. My advice would be to buy a couple of fixer-uppers and use the BRRRR method. You will still need 20% down for a construction loan or hard money loan, but you can fund the 20% with a separate private loan. Once the property is fixed up you do an 80% cash out refinance on the new after repair rental value, pay back the down payment lender, and hopefully have a little bit extra in your pocket.

I would consider doing what is common right now in Worcester (especially if it's anywhere near one of the universities) and rent by the room. Going rate is around $750 per room. If you want to lock them into a lease I would suggest charging $750 per room per tenant and having them each sign a lease (with language regarding the shared spaces). 

A hard money lender or a lender who frequently does construction loans would be the direction I would personally go on this, assuming you are going with the BRRRR method for the multi family purchase. I am renovating my first flip now using a construction loan and it's working wonderfully. I also work with a couple of different investors who have gotten private money / hard money loans on their original purchase of a multi they have used BRRRR on.

If a HELOC isn't an option I would advise talking to a hard money lender / private lender. Feel free to sent me a DM and I can send you a couple of names of where to begin!

Hi! I am a full time agent in MA. 

To answer #2, yes, a hard money lender will provide a loan for that type of property given the numbers make sense. Obviously there are going to be unknowns if you purchase an auction sight unseen, so I would just make sure your purchase price is very conservative and you largely overestimate your reno budget to leave plenty of room for errors or surprises. Also be conservative in estimating your ARV.

The fix and flip calculators here on BP are very useful. Invest in a Pro account so that you have unlimited access to them to analyze a few dozen deals before you make any offers. I have personally brought the report the fix and flip calculator generates to a private lender before to show them the numbers and why I believe it makes sense, and it has worked well for me. I just purchased and started demo on my first personal flip. 

If you are looking for financing options I have a couple of different lenders I can refer you to for private loans / renovation loans. Happy to send you their info if you shoot me a DM! 

I can give you 1-2 names of attorneys in the Worcester area (not sure where your property is located) if you send me a message! I have not personally used them, but I am a full time real estate agent and one of my most trusted real estate attorneys that I work with has given me their information and strongly recommended them for my investor clients.

Also going forward I wouldn't recommend using anything Zillow related at all... There is a service called SmartMove by Transunion you can use to screen future tenants. There is an option for the tenant to pay the $41.99 fee (in lieu of paying it yourself) and I have found that even just having to pay a fee will deter some of the "lower quality" tenants. It does background/criminal check, credit check, past eviction record check, and income verification as well as a part of the fee. 

Congratulations on your purchase! IMO there is nothing wrong with a condo as a first investment property versus a single family or multi family. 14% COC RPI is also a very healthy percentage. Yes, there is only one unit to cash flow from, but it's less money down and costs you less up front. You can still count on around 3% (conservatively.. with the way the market is currently 5%+ is probably a safe bet if this continues) rent increase per year. After a year or two and whatever minor reno it seems like you're doing, you'll be able to cash out refi (and potentially combine that with a heloc) to buy another property.

The first step is the biggest step and you've made it! So again, congratulations!