All Forum Posts by: Joe Rinella

Thank you @Michael Noto @Ann Bellamy and @Shaun Reilly. Your feedback has been very informative and helpful. I appreciate it very much.

Thank you for the input everyone. @Michael Noto I got pre approved yesterday and rates weren't available on Sunday's. I should get the rate today. I'm expecting 4% but made it 5% in my calculations just in case.

@J Scott thanks for the input. In talking with our real estate agent it was suggested that we coils raise rates after the existing tenants move out and I think it's definitely viable.

@Ann Bellamy this is in Fitchburg MA. It doesn't appear to be in a very bad part and isn't far from the University. Any advice?

Thanks everyone,

-Joe

Hi everyone,

I've come across a 4 family unit deal in Western Massachusetts that I'd like to put an offer on, I'd just like some input from everyone on the numbers before I go forward with it. This is my first deal so I want to make sure I'm not missing anything.

Property Cost: $200,000

Down Payment: 25% (50,000)

Mortgage terms: 30 year

Mortgage Rate: 5%? 

Anual Taxes: $4128

Gross Monthly Rent: $3,225 (the current tenants are underpaying. When they leave we will raise rents to total $3,900 or $4,000

Monthly Insurance: $194

Management fees: 10%

Utility costs I will have to pay per month: $391

Using the bigger pockets calculator, I'm not exactly sure what to include there for vacancy rate, repairs/maintenance, and cap ex. I put 7% for these as an estimate because the property has a newer roof, new boilers, and does not have a septic system. It seems to be very well maintained and in really good condition. Any repairs I can see would be minor cosmetic. I think the vacancy rate is 7% but am not 100% sure.

Any help would be greatly appreciated. I'd like to put in an offer tonight but want to make sure the numbers all make sense. If I can raise the rents to $3900 total, using the bigger pockets calculator it looks like I'll get just under $1,000 net income after all expenses per month. I've heard that $250 profit per unit in Massachusetts is good, and I think I'm just about there after we raise rates and assume all the numbers I calculated for expenses are correct. Is this profit also good for the amount of money I'm considering putting down?

Thanks!

-Joe

@Steve Vaughan @John Kent @James Syed  Thank you all for the input! This is all very helpful.

-Joe

Hi everyone,

I'm considering putting an offer on a 4 unit rental property. This will be my first real estate investment if it goes through. I don't want to live in it so I'm going to do 25% downpayment. I want to open an LLC and have the LLC own the property to protect my personal assets. Should I buy the property under my name, then open an LLC and transfer the property into the LLC? Or should I wait until I have the LLC opened, and then purchase it with the LLC? I just don't want to miss out on a deal and also I'm not sure what types of loans I would get under the LLC. Would I be looking at additional costs to transfer ownership to the LLC?

Also if I transfer ownership to the LLC, should I refinance the mortgage so it is under the LLC? I'm wondering if I would have personal liability in court if the mortgage is under my name, or if I would just be seen as an equity investor in the LLC, and the only thing at risk would be the property that the LLC owns.

Thanks in advance for any advice.

-Joe

Thank you for the warm welcoming everyone!

@Shaun Reilly Thanks Shaun, I've setup some keywords and will look into attending some of those meetings you mentioned.

@Justin Silverio Thanks Justin, and I'll see you in Chelmsford on Wednesday!

@Paul Timmins Thank you Ashley, I will definitely do that!

-Joe

Hello everyone! My name is Joe and I'm located in Waltham, Massachusetts. I work full time as an IT Lab Engineer and have a lot of experience with IT. I've just started getting into real estate investing over the past few months. I've been attending local REI club meetings, researching online, and networking. I'm looking to start purchasing multifamily properties in Massachusetts and possibly southern New Hampshire, and rent them out for cash flow.

Multiple people have recommended I check out BiggerPockets, so I started listening to the podcasts and joined this site. I'm looking forward to joining the community and networking with folks here!

-Joe

Great, thank you guys. I'll reach out to Amanda.

Hi everyone,

I'm planning to open an LLC soon and begin buying and renting out multifamily properties in Massachusetts. I'm looking for a good CPA in Massachusetts that has experience in real estate investing. I'd like to get some tax advice from them. If you have any suggestions please let me know!

Thanks,

-Joe