All Forum Posts by: John B.

Hey Bill,

What were a couple of the biggest problems you encountered?

I'm always interested in picking up more 2 to 4 families, in the Worcester area.

Recently passed the Massachusetts Real Estate Salespersons License exam, and now looking to join a low cost real estate brokerage in Massachusetts.

My wife and I are active Real Estate investors, and we really are not looking to sell real estate, but rather looking to capture some of the buyer commission when buying investment properties, and have full MLS access.

Thinking possibly of looking to join a non-Realtor Association firm, that just charges MLS fees only? Or something similar.. If anyone has any suggestions for low fee real estate brokerages in Massachusetts would love to hear them!

Looking for investor friendly/savvy mortgage broker in Massachusetts.   Particularly interested in 30 year fixed conventional financing for 2 to 4 family investment properties.

Looking to possibly get 2 mortgages on 2 different properties in the next 2 to 3 months.   One property is in Rhode island, the other will probably be in Massachusetts.

It's possible that one of the properties may need some work, and ideally would be able to roll in some of the rehab costs into the mortgage.    Looking for the best way to include rehab costs into the mortgage..  Ideally without having to pay closing costs twice.

Hopefully looking to avoid calling around to a lot of banks to find the best rates/terms, would rather find a mortgage broker who has different options to choose from.

I don't know of a standard NH form. Usually you could find some standard P&S forms from any source. Maybe the Bigger Pockets files? Or on-line? Probably best to have a NH real estate attorney review any P&S you find.

Are you looking to buy property not on MLS? For Sale By Owner? Or wholesale properties? Usually the listing or selling agent will have a P&S.

P&S contracts do not require a realtor in NH.

I am a landlord in Mass..   I prefer year long leases.   Most tenants will abide by the year long lease, and you can schedule the lease to end at the right time of year like @Colleen F. says..    Definitely far more tenants looking in Spring/Summer than in the middle of Winter.   Then you have better selection, and can typically command higher rents.   

Tenant could still leave early on you.. but if you have tenants with good credit, you could technically take them to court if they don't pay the remaining months of the lease.  

If the tenants are bad, then typically they are violating some part of your lease, and you could evict on those grounds.

Sometimes also you get tenants looking for short-term rentals, maybe they just moved to the area, or looking to buy a house etc..  and I don't want to be re-renting an apartment after a few months..  just too time consuming.    At least with a year long lease, they have to give you a commitment. 

I see that in general there are few fewer renters looking in December/January time frame, between the holidays and the cold, people don't really want to move.    I typically see a far greater demand in the spring and summer time, at least here in Massachusetts. Best to time your leases so that they renew during the spring and summer, and you probably will have a much easier time renting, and getting a higher price.   

Also where are you advertising?    

If the only way the deal cash flows is buy paying all cash, I wouldn't do the deal.   There are deals to be found even in Mass that are better than that.   

25% down, 75% LTV, should give you plenty of comfort. That leaves 75% of your money to use to buy other properties.

If you're paying down debt you're only saving what 4 to 5% mortgage interest?    You should be able to make at least 10% return on rental properties and probably more, especially if you take advantage of leverage.   

If you end up negotiating the price down because of an all cash offer, and the numbers work, and then refinance and cash out, or sell, then maybe an all cash deal would make sense in that case.

I would keep looking for properties, be patient.    

To me, this all comes down to numbers.    I assume you're looking for cash flow?  

What are your expected rents?     What are similar new construction apartments renting for these days?    What are your expected expenses?   How are you financing, what sort of terms?      

I believe there is a shortage of rental apartments in Boston right now, so you shouldn't have trouble finding tenants especially for brand new construction, assuming the rents are within reason.     

Maybe try the Bigger Pockets Rental Property Calculator..