All Forum Posts by: John N.

Are there any Massachusetts builders that work south of Boston that will construct a basic rental grade single family property for around $100 per sq ft? Nothing fancy is needed (just durable) .  This is with utilities being close by. 

I just sold one of my rentals and want to take that equity and roll it into another investment in the near future.  My options are wide open but right now I am looking at Multi's.  I live south of Boston and it can get very expensive around here so I'm looking to find a lender that will allow 20% or less down on a non-owner occupied property.  The lower the better so I could potentially buy multiple properties. 

Any help is greatly appreciated. 

Thank you! 

Hi Vahe,

Thank you for the detailed post.  I totally understand the builders side of things and because of this I thought it may be hard to find. The only way I could see a builder taking on the risk is if they knew

that the home would still easily be worth what was put into it (if not more) in the unfortunate event of the buyer falling through with the deal.  This way they could still sell the home to break even or potentially make a profit. It would be like the builder finding a property on their own and building the home to sell on the market for profit, but in this case the buyer is already lined up.

 In my case I am trying to build a multi family that I will owner occupy. I am trying to build it on the strictest budget possible which may help the home be worth more if it indeed fell through (which it wouldn't with me!).  I wouldn't even have a builder start anything until I have a financing approval in hand.

As far as your second point goes the issue I found with that is that for me to get a construction loan I believe I still have to put money down and why would I want to use my VA loan if I lose the advantage of putting 0 down.

Does anyone know of a lender that has a program for new construction utilizing the VA loan? I know it can be hard to find one since the VA loan does not pay out until the end. I am trying to build a home with as little down as possible.

Another thought I had was to find a builder that could build the home up front and then purchase when complete. Again, I know this may be hard to find but you never know!

Thank you!

-Jack

Does anyone know a builder in Massachusetts that is willing to purchase the land and build a home up front and then you could purchase the property once built? I want to use my VA loan so I can purchase the property with very little down. I know this is a long shot but you never know!

Thanks!

-Jack

Thanks for all the input everyone!

I'm just reading this now but thought of another question.  I know you could not use the current rental income when looking for your next property but could the bank use future rental income to offset the debt to income? Also if you cannot use the rental money as income how does that work for tax purposes?

I was thinking about the possibility of renting an in-law out or having a roommate for room and board and I wanted to know if it is legal to do or not in Massachusetts?  If allowed, I would also claim this on my taxes as rental income correct? Any help/information on this topic would be greatly appreciated.

Thank you,

-Jack

What is the lowest a bank will write a mortgage for in Massachusetts?  I am looking at a few cheaper condos and after the down payment the mortgage may be below $50,000 or so.  Any bank recommendations? I'm on the south shore.

Thanks,

Jack

Hi Mike,

Randolph, Avon, Holbrook, any of the Bridgewaters, Easton, Raynham, Taunton.