All Forum Posts by: James Loisou

Thank you @Shaun Reilly . Up until now I have not attended many investor events, networking, or meet-ups,  but I will definitely be doing so in the future. It is great to see that there are a lot of quality groups. Thank you.

If you are intent on buying this particular house, try to find out as much information about the property as possible. This includes the house itself, the area around it, as well as finding out as much about the seller as you can. If you can find out the seller's true motivation for selling, his goals for the money received, etc., then that can help you tailor your argument for buying the house at a more reasonable price.

As above members have stated, the local comps are the best objective evidence for your argument. You can also put together a list of everything that needs to be fixed, replaced, etc. with cost estimates. You could then approach him again with a solid presentation showing him the facts as they relate to him and his property. Even if he does not initially agree with the common sense, it will at least get in his head and after more time goes by he might reconsider your offer. Until then, move on to the next potential project and contact him every once in a while. Good luck.

Thank you @Antonio Coleman . You as well.

@Antonio Coleman I agree. I usually try to have a piece of paper and pencil by my side whenever I am listening to the podcasts because I will usually hear something that will give me an idea to research later. And when driving and listening it feels even more productive. 

@Mike Hurney  , I like flipping houses the best. It combines both mental and physical challenges. And the feeling of accomplishment after you have transformed an old worn out house into a gorgeous home for a new family to live their lives in is great.

@Paul Timmins  Thank you for the heads up. I have not read those books yet, but I will enjoy doing so.

Thank you @RJ Reynolds

Hello to all BP members,

I recently discovered the BP podcasts and I really enjoy listening to every one of them. It is great to know that so many other people are so motivated and have such a passion for real estate and investing. As a result, I signed up here a few days ago and slowly but surely trying to write some blogs and participate in different forums.

I am a licensed real estate broker in eastern Massachusetts, as well as a licensed attorney and a professional firefighter.  I love researching, buying, renovating, and selling. I am also getting interested in multifamily investment as well. Looking forward to discussing all aspects of flipping and investing with BP members. I hope to teach what I know and learn about what I do not know.

Thank you,

Jim

I am looking at buying a deed restricted low income multi-family here in Massachusetts. Currently it has separate electric, but the water and gas heat is not separate and is included in the rent. Since the maxumum rent for each unit is mandated, I was considering further separating the utilities from the rent. As I understand it, the low income renter is still entitled to a small allowance for utilities.

Has anybody had success sub-metering the gas and water for each unit and are there any possible pitfalls you are aware of when doing this to a deed restricted low income multi family?   Thank you. I appreciate it.

In best world scenario your numbers are decent. But make sure to factor in a few more things. The extent of the fire is very important. I am a professional firefighter and I can tell you that not only the fire itself can cause a great deal of damage, but the water used to put it out can compound the damage. Which can lead to further structural concerns, possible mold, etc. Aaron is correct in factoring in the fire inspector/town's permission.

When factoring your rehab costs also recognize that smoke damage and excessive heat can sometimes effect many areas of the house that are not even in the room where the fire was contained.

Also, I know this goes without saying, but before you make any decisions I would visit the building department for that town and verify if all of the renovations done by the previous rehabber were permitted. Considering the comps, it looks like you might have a good cushion to absorb some unforeseen overages, but it is a risk.

I am sure there are some creative financing ideas out there, often with higher interest rates and fees, but sometimes the best answer is to make a concerted effort to take extra overtimes and side jobs to raise the down payment. I know that you have probably already thought of that, but it is an idea that is worth revisiting. It could be worth specifically devoting the next six months to working extra shifts and even picking up some indeed or craigslist jobs if need be. During which you could still spend some time further researching the local market. Not to mention the fact that you would ultimately be a lot more attractive to lenders if you could provide your own down payment. I am sorry to hear about your family medical issue. The most important thing is to not give up.