All Forum Posts by: Igor Komerzan

Investment Info:

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

Purchase price: $73,000

House was purchased as a single family. Went though town permitting process, Zoning board, to convert to a 2 family. Total rehab included new plumbing, heating, electrical. Downstairs units is a 2 bed/1 bath 1100sq. Upstairs unit is 1 bed/1bath, 800 Sq st. Convert upstairs into second unit. New kitchen, bathrooms in both units.

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

Suffered from analysis paralysis. Finally made the decision to go for it and this was the it.

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

On the MLS. We negotiated down $7k

How did you finance this deal?

100% financed through private money. (friends/family)

How did you add value to the deal?

Complete Rehab, converted from 1 to 2 family units.

What was the outcome?

Very positive cashflow and built a relationships for future deals

Lessons learned? Challenges?

Appraisal came back about $30k than anticipated (we think due to covid, may 2020), Needed cash to pay back investors (this was a BRRR). Lesson learned was to have some reserves just in case.

Appreciate all the input guys.!

From what i gather, from all your input speaking with others, and my own research,  a homeowner is able to pull his own permits and conduct the work himself as long as its to code.  

Where it gets tricky is when the property is strictly an investment. At that point the inspectors will likely be much more critical and will most likely want someone with a contractors license to do the work. I have read somewhere that if a person buys more than 1 home in 2 year its considered an investment and makes  it more difficult to conduct the work youself.  

 Thank Patrick.

Im not looking at  getting a GC either. Do you do the work yourself? or did you hire out the work to other contractors? 

Quick question:

Does anyone know what the laws in MA are regarding doing your own work on fix and flips, and when its mandated to have a licensed contractor? My father has been on the carpentry trade for almost 20 years (no Construction supervisor license) and i am also pretty knowledgeable about the trade, the plan is to work on the project together. I have a home improvement license, but not a Construction supervisor license.

I plan on buying my first fix and flip and plan to do as much of the work on it as i can. Electric,Plumbing and HVAC i wont touch. I will have licensed professional do that. But what about things like knocking down walls, building new ones, window replacement, kitchen remodel, etc... do i need to hire contractor with a Construction supervisor license?

Anybody with experience doing their own work on fix and flips, or contractor that know would be greatly appreciated. 

Thank you

Ok, thank you for letting me know. What are the penalties of moving out earlier? We love the place we are in now and we really don't want to live in a triplex. I could get a conventional loan but I don't want to tie up a good chunk of of capital, that's why the low down payment of an FHA loan is so appealing.

Hi BP,

Well that didn't take long. I went to my first showing the other day. It's a triplex that is conveniently located right in my small town. There is a shortage of rental propertiesin this are and the current owner said she has never had any of the units vacant. The unit was owner occupied up until a few years ago and it fetches almost $3000 monthly for all 3 units. Heat and electricity are included in the rent and last year the landlord paid $2500 for heat. She recently had replacement windows done and updated plumbing. The electrical will need to be updated, and things like paint and a good cleaning. The asking price is $199,900 but the sellersis very motivated and I believe in an gets it a little cheaper.I will most likely get an FHA loan and live in the apt for 6 months, enough to meet the FHA requirement and then rent out all 3 units. Do you guys think this is worth it? I'm mainly looking to make enough to pay the mortgage and cover expenses. Realistly I'd like to have the house paid off in 10-15 years and then id either sell the house all for profit or keep renting it.

It will be my first property of any kind, those that have much more experience than I do, does this sound like a good deal or no? 

Thank you for the warm welcome guys, 

Appreciate all the encouragement. 

@Collin Fishman that's the first I've heard of the Mass Housin Loan, but from the little research I've done just now it's defenitly an option. Thanks for the suggestio! 

Hello all BP guys and gals,

Decided to do a quick introduction to this amazing site. I've been peeking around for the last few months and have recently become more serious about buying an investment property. BP had been incredibly instrumental in helping me decide what I want to do as far as real estate. I'm 25 years old and looking to get a jump into real estate. What I'm mainly looking for in the beginning is to provide some passive income from rental properties. I'm located in Western Mass where the market is somewhat dried up but I believe there is also great opportunity. I'm hoping to buy a multi family (preferable a tri or quad plex) in the coming months and I'm heavily leaning towards getting a FHA loan. The reason being i don't want to invest too much of my Capital in one property, which I will live in for a short while, until I meet the FHA requirement and then use it as strictly rental property.

I'm recently married and combined we have a healthy income. Hopefully I can make the jump into our first property soon. I will track my progress for those who are interested and if any questions arise, I'm sure BP will be there to help me out! 

I look forward to being more active on this site and heating back from all of you.