All Forum Posts by: Joe Burns

@Maureen F. 

Thanks for clarifying the difference between a coop and condo. I honestly hadn't really heard of them until @Michael A. mentioned it. I guess that makes sense since they're not as common here.

Where abouts in Dorchester did you purchase? How has it been working out? I'm so interested in the financials for your deal considering dorchester has more properties at my price range than any other area. 

I've started coming up with a few banks that I want to try to get pre qual from last week actually, any recommendations? I was recommended by an agent to check out eastern bank and FBC home loans. I can't help but to question recommendations though.

Thanks for all your advice Maureen,                                                                                                             -Joe   

@John Pauler

John, thank you so much for the great advice. It's great to hear advice from others in the Boston area. I just checked out the lottery website and they're sending out applications very soon. Sweet timing!

Is this something that you or people you know have done? I'd love to hear about the position someone was put in after winning the lottery (literally) and buying one of these properties.

Thanks again!                                                                                                                                                      -Joe

@Pete Perez 

Thanks Pete! I appreciate the encouragement. Do you think it could be a long term strategy to repeat this again and again to build up a portfolio of properties?

@Michael A. I like that approach. Secure a property to live in in a smart, economical way then move on towards real estate goals. How long did you look for your property? And ultimately where did you find it? Was it publicly listed or did your agent bring it to you as an off market deal?

I'm working on trying to find an agent right now actually. I've worked with a couple in the passed but it seems when I explain my goals they loose interest in me. I know people that have had real estate agents bend over backwards for them even though they had almost no money to put down. The buyer was also not nearly as picky as me. Any tips on finding a good agent?

-Joe

@Kathy Henley This is a must! I'm going to start using BP a lot more to try to network with current investors. Any tips on how to form a decent learning relationship with an investor? I want to bring more to the table than coffee and my ears and maybe build a longterm business contact or partnership with someone. Thanks for your advice Kathy, its very much appreciated!                             

@Michael A.

I really appreciate your long reply and it's awesome hearing from someone located in a city environment. You're right, I want to be in this for the long haul so a tucked away savings account seems like a must. It's funny you mentioned studios, one just popped up on the market that was priced in my budget but I hesitated in going to see it. I went to finally contact the agent a week later and it had already sold. Lesson learned! When you say in NYC you can't rent out studios, do you mean that the contracts you sign do not allow you to rent them out or that there is no market for them? Congratulations on your first home! It must feel amazing to start to see the plan to come together.

Hello BP! 

I want to post today to hear some of your opinions and perspectives. I want to hear what you guys would do if you were in my position, or for anyone that is in my position what have you been doing to help yourself get ahead. I guess it's a little like online mentoring. I've been in the shadows of BP and every other personal finance/ investing website for just under two years now and I feel like I've soaked up tons and tons of great information. But what can I do better?! I think I can benefit greatly from your interactions.

So, I'm 20 years old until next month. I've saved $35k for investment purposes. In the passed 2 years I've been watching my credit score like crazy, going from nothing to a 750 (fico 8) with only credit age being a hurting factor. I have $25k in combined credit limits and I only use about 3% of that making purchases just to keep accounts active. I just moved out to Boston 2 months ago after getting a new job. I see this as a problem; going for a loan and only having about 6 months on the job. 

I budget my money and I'm always pulling the budget tighter. Okay, I might have gone a little crazy on eating out when I first moved to the city but I've gotten that out of my system now! I currently have a car leased for less than 200$ a month. I am going to get a company car very soon and have already made a negotiation with the dealer to take my car back early. Sweet! Thats $200 saved each month and $1400 a year in insurance.

I currently rent 1 bedroom in a 3 bedroom apartment for 700 bucks a month. I found a college kid going home for the summer and just took over his payments for the rest of the lease. No lease fee and no deposit! Win! 

Unfortunately, It feels like the timer is counting down now. I have until the end of August before I have to find a new place to live. I'm not sure if I should try to keep renting or if I should buy an investment property. I know I won't be finding a 3 family out here in my budget but I'm thinking maybe if I could buy a 2 bedroom condo or apartment unit, I could at least house hack my rent or part of the rent. HOA fees make it hard to break even on that scenario. My idea is maybe I could house hack until I get another down payment saved up, then move out into another property. Letting me rent the entire unit for greater rent or rent by bedroom since its so common here.

Lastly, my income. I make 47k and I am on a raise schedule of 10k in the next 6-8 months. This means in not too long my salary should be up around 57k not including any overtime (and overtime is my middle name!) I'm currently able to save money the way I'm living now, so hopefully I can just maintain the same expenses. 

Oh, I also contribute 3% to 401k and 3% to a roth IRA through my employer. They don't do a match but instead a profit sharing plan. So based off of what the company makes they will contribute a corresponding percentage of my salary to my 401k. I have a great interest in stocks myself and have traded quite a lot in my scottrade account. I can't help but to feel like I'm getting ripped off in a 401k when I've done short term trades that have made 20% in a matter of a week or two. Is it the convince of it?

Alright, thats it for now! I hope this post raises some questions and guides me through my decisions. 

Thanks so much!                                                                                                                       -Joe

Hey @Ricky Beliveau thanks for sharing your project! I'm excited to see the finished product. I have a couple questions for you if you get a chance.

1. How/ Where did you find the property? (MLS/Drive by/direct mail)

2. How did you finance the property/ rehab costs? (Commercial/ cash from investors?) Was the property purchased cash and rehabs done on a loan or any other combination?

I just got out here from Western Mass. I'm currently living in Roxbury Crossing. I am ready to get the ball moving out here in Boston. Any bit of insight would be greatly appreciated! Cash on hand (Not $1M!)