All Forum Posts by: Jim Sestito

@Glenn English

You are far from a newbie get rid of that mindset... you have experience, a license... yes you have plenty more to learn but have some confidence in the knowledge you have thus.

As for the kids... don't use them as an excuse for your time but as MOTIVATION - what is better than leaving a legacy for them?  Quit TV and social media not time with your kids.

Here's what I'm thinking of doing:

1) get a regular income producing 9-5 job and be miserable for awhile. However this will allow me to fund my investments through conventional bank loans. After a couple of years I'll hopefully have enough properties where I can leave my miserable job. :)

2) Get a hard money loan and buy a property. I'm looking at either holding multi-families or fix and flips.

3) well...what would you do? - Pick one and focus the hell out of that strategy

@Raymond Hill Agree w the others.. tough to know without knowing purchase price, ROI ect. $200 / mo sounds nice for a single family with a mortgage.

Is there anyway to increase rents/ decrease cost?  $100 a room has a nicer ring to it.... 

@Amil D.   You can get some great advise here but go right to source... call a bank you are interested in using and ask them what qualifications they need to lend to FHA.

A smaller bank can usually forward your exact situation to the underwriter (the person who actually yay or nays your loan) and get a quick vibe of whether they would lend to you or not.

Good luck - Jim

@Dave Foster Right now it is her primary.  She is moving out April 15th.  Plan was to rent her unit (as well as the in law which is already rented) for 12 months until it is considered an investment property.

She could sell now as primary with the first $250 but the next $150 I believe would be taxed which seems like an avoidable hit right now.

Situation:

Grandma is moving out her longtime home in Foxboro Massachusetts a suburb 45ish min south of Boston.  

It is a 3 BD / 2 1.5 BA House with (market rent $2,300) an attached 1 BD 1 BA in law currently renting for $1,000 / mo

She has no debt on the house.

The home is already in an estate featuring my mother and her 2 siblings.

The home is dated, on a busy, but in a desirable town / school district.

Zillow Estimate 400K... I think it would go closer to $375 ... her tax person estimate 80K wack in taxes if she were to sell.

Enter 1031 Exchange ?

With all data above - looking for thoughts on using 1031 tax exchange to trade up for another investment property to keep the wealth building asset in the family for generation to come.

Since a 1031 must be done with an investment property this would require us to rent the property (the main house and the in law) for one year.  

Any knowledge on the subject would be greatly appreciated.

Best - Jim

@Matthew Kwong That question has been asked many times on these forums before... where to invest... Usually there is a very long spirited thread that consists of either:   A.  experienced investors telling what market they are in.  B. People cheerleading their local market.  C.  And maybe a mix of those telling you what markets not to roll in. 

While entertaining sometimes those posts miss the big picture... There is no perfect market.  There is no market that will work for anyone.  Any successful real estate investor on this site is not successful just because of their market alone.  They are successful because they learned how to analyze that market.  Made a plan.  And took action.

Short term rentals... pick a place you like to or would want to visit... do others visit there?  What are others charging on airbnb vrbo?  How does that relate to home prices?   Is the competition oversaturated?

Sounds like your off to an  awesome start 1. joining bp and 2 having a place in mind with boots on the ground (your friend)

Good luck and see you around the site.... 

@Keoki Kimzin I often go back to my first reno where we used the least expensive product home depot had to offer for everything.

Three years later here is my take. (its a rental so I still own and monitor the property)

Kitchen::

Appliances:  Go Cheap - we used the lowest priced stainless appliances with decent online reviews and they are kicking along just fine.  Haven't had a call on appliances.

Counter tops: Formica is still looking just fine.

Cabinets:  Went cheap - these are holding up OK but showing signs a wear - looking back I would bump up to middle grade here.

Sink and faucet:  Had a hook in this department and went away from the depot - Middle end stainless and still working great.  

Bathroom:  

Vanity - wish I spent a little more.  While still functional the vanity is starting to show chipping and signs of wear and tear.

Toilet:  Medium - good here.

Shower pan - Medium - good here.

Shower Head - went cheap and had to replace too before we went high end - good ever since.

Tile floor - cheap - good here.

Make sure you have a ceiling light / fan combo - steam from shower will beat on paint.

Other items -

Insulation - sort have been doing it in pieces.  Wish we just had someone blow it out and took advantage of energy efficiency rebates.  More energy efficient homes are just better for everyone.  You, the planet, the tenants.

Best of luck and keep us posted!  

Hi BP,

Calling out to those in Foxboro, Mansfield, Easton, Massachusetts, Stoughton

Between properties and looking for a room to rent for a few months. 

Let me know if you have been thinking of doing this for some extra income and want to discuss further!  

- Great roommate (so  I have been told ) and maybe we can even do a deal together! 

Best,

Jim 

@Charlie MacPherson How much house were you heating in the example you gave?  And what was year built / insulation situation?

@Keoki Kimzin Good for you man awesome when things work out.  One tip - do not 'over reno'  -- rents cap based on your neighborhood usually.

Am currently analyzing a property with 2 sets of 'hoarder tenants' -- sucks but in a market like this every house on the MLS has 'a story'

Keep us posted on your reno process!

Jim