All Forum Posts by: James Murphy

Real estate can be a great investment for those who are willing to conduct thorough research, build a team of advisors, and make informed decisions. It's important to maintain reserves to handle potential market downturns or for capital expenditures that may arise in the future.

I have pursued a diversified portfolio of real estate properties and stock index funds. However, I currently prioritize real estate as the main investment vehicle for my portfolio.  There have been many people in the past who generated wealth through real estate so it's a proven strategy!

Permits are intended to protect the consumer.   Most consumers can't tell if a contractor did the work correctly or not. Contractors normally add the cost of the permitting to the consumer and contractors may charge for the incremental time that it takes to wait for and work with the permit inspector.  Some insurance companies may deny a claim if they find out that work was done without any permits that are legally required.  Any permits that are opened should be appropriately completed and closed off.  Any open/unresolved permits may be considered a cloud on title in some locations which will cause problems with sales or deed transfers.  These comments are not legal advice.  Good luck!

@Terri B.

To increase your Cash on Cash return on investment, it may be beneficial to use debt to obtain income and asset appreciation with less cash expenditure. However, it is important to note that the absolute profit per month will be higher without debt. The decision to use debt or not ultimately depends on one's priorities.

Regardless of your choice, it is crucial to maintain the property in good working order and have sufficient insurance coverage as a defense against liability claims. Some people also suggest forming LLCs to contain liability in certain circumstances.  It's a good idea to consult a lawyer and/or insurance company for professional advice on these specific matters.

Congratulations! When interviewing brokers, you can confirm the technology brokers offer for market research and property evaluation. Good technology expedites investment searches.

Hi All,

I'm looking for additional sources of free or paid residential real estate market data/research for the Boston Market.  Specifically relating to small multifamily (2-4 units) for long-term rentals.  In addition to working with a broker, government websites, regrid, and websites like Zillow and Redfin, etc. can you reply with additional options?

I have heard of John Burns Research and Consulting LLC for regional data with free newsletters and paid services.

There are many options so the objective of this post is to seek BP community input!

Thanks in advance,

James 

I believe having a mentor who has already achieved what you aim to achieve is a great idea. However, it can be challenging to identify mentors who are worth paying for, and who will meet your expectations compared to the cost.

One effective approach could be to attend REI meetups and get to know potential mentors. It's best to pursue a mentorship relationship with someone whose credentials and experience can be verified in advance.

For investors who may not be interested in scaling quickly or who seek less complicated investments, it may be beneficial to learn as much as possible for free before seeking out and paying for a mentor.

K&T (Knob and Tube) wiring is not considered illegal in Massachusetts. However, when I purchased a house with K&T wiring, I decided to rewire the entire house before moving in. I knew I would be using many electrical appliances and features that could burden the wiring. Additionally, there were safety concerns associated with K&T wiring and insurance challenges. Therefore, I considered rewiring the house as a necessary cost to ensure my peace of mind.

In some tenant-friendly states even if the rent is due on the 1st of the month in the lease the tenant has until the end of the month to pay (like in Massachusetts).

Contractor quotes can differ significantly, so I always try to obtain at least three quotes for any project. It's important to confirm whether the quotes you receive are fixed bids (with approved change orders) or just "estimates" that may increase as the project progresses. In my experience, contractors who have previously worked with investors tend to be more proactive in controlling any additional costs that may arise during the project.

I specialize in local investments, but you can search for real estate agents, property managers, contractors, appraisers, and inspection companies in your target area to find potential collaborators who can be your representatives in the target market.