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All Forum Posts by: Justin Hammerle

Justin Hammerle has started 1 posts and replied 392 times.

Post: Refi portion of the BRRRR

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

Hi @Tracy Graham 

Typically, the loan to acquire and rehab a property has a high interest rate carry and short term maturity. You are almost forced to refinance to a perm loan in those cases so you can get taken out of the initial loan. I've really never heard of a situation where it makes sense to do a HELOC on top of a commercial loan to purchase and fix a property. Perhaps if its more of a house hack situation where you are buying a multi through an FHA or VA loan and plan to do the rehab yourself? Maybe others can weigh in.

Post: Guidance on primary residence home equity

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

Instead of refinancing you could open a HELOC to tap into the equity to use to invest into other properties. I am not sure of your goals whether it be more capital or cash flow but the options would be plentiful with $800k at your disposal.

Post: First Time House Hacker - Pittsburgh, PA

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

Hi @Anthony Rini

Focusing on multi-family properties should help better position you to scale in the future per your goals. FHA allows up to 4-unit properties, I would absolutely leverage this to the extent I could.

Hi @Jeremy Melloul

The $2k finished rent number is concerning to me, if your trying to refi at $250k+ (60% LTARV) at current interest rates your debt service alone may be more than your rent.  It may make more sense to fix and flip or sell "as is" versus holding it.  

Post: Become a RE agent in Missouri

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

are there running costs for being an agent? Yes, they are generally unavoidable and include access to MLS and fees associated with your broker/association.

Do I have to work for a brokerage? You will generally not be able to practice as an agent nor have access to MLS without being associating with a brokerage.

Does it cost to keep my license?  Yes, you have fees from the state business department that issues your license and the cost for continuing education.

These fees generally aren't significant and could perhaps make sense for you by saving commission in the long run.  There are brokerages out there that are cloud based only like eXp that could be a little more forgiving on your dues.

Post: Ask this Old (Multi-Family) House

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

Hi @David Coughlin

I think you are approaching this correctly with caution and focusing on education as a first time buyer.

Generally at the walk through stage, it will be important to have a team that can help you identify costly repairs prior to writing an offer, I see this as being just as important with older properties as with any. If you are considering a government backed loan like FHA, post offer/acceptance there will be a mandatory inspection which will help identify any major issues as well.

Taking into consideration what you find during a physical inspection, you can move repairs/capex down or up and see whether or not the property fits your metrics.  I wouldn't let the age of the home deter your from going through the DD process at minimum.

Glad to connect and discuss more anytime.

Post: Is it too risky for a newbie to do a rehab rental home?

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262
Quote from @Michael Fung:
Quote from @Justin Hammerle:

Hi @Michael Fung

Putting the property under contract will give you some time to analyze the property, line up a contractor and financing; and determine whether the deal makes sense for you.  

Ideally you would want to have all your ducks in a row prior to submitting an offer but if you're looking at something in the Boston metro area on the market around $230k, it likely won't last long if there is money to be made.


 Thank you for your reply Justin, this property is not in Boston (it was the closest option I chose from the drop down list).  This property is in the town of Hudson, MA.  I like your idea of putting the property under contract, it will give me more time to gather more information before jumping in with both feet.


 Hudson is a great town not too far out from Boston Metro.  I've actually assisted an investor in securing private financing for a property there.  Feel free to reach out if you would like to further analyze the deal and consider an offer, glad to connect.

Post: Is it too risky for a newbie to do a rehab rental home?

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

Hi @Michael Fung

Putting the property under contract will give you some time to analyze the property, line up a contractor and financing; and determine whether the deal makes sense for you.  

Ideally you would want to have all your ducks in a row prior to submitting an offer but if you're looking at something in the Boston metro area on the market around $230k, it likely won't last long if there is money to be made.

Post: How to invest in older age

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

All your classic retirement funds (401ks/IRAs) slowly shift from stock to bond allocation as you age showing income production is generally more important than value appreciation as you age.  

Everyone has different goals regarding lifestyle and what income they will need to support it, so I would recommend reaching out to a financial adviser to explore this more to find out what your number is.  In understanding your number, multi-family real estate is a great asset class to consider because of its tax benefits and low volatility/risk adjusted returns.

Post: Parking charges opinion

Justin HammerlePosted
  • Realtor
  • Providence, RI
  • Posts 404
  • Votes 262

If someone is asking to use more space in your garage I think it is more than reasonable to request more rent.

I find that the cost for parking is highly localized. you can always research what other apartments communities are charging for covered parking in the immediate area and compare to what your charging.  If under what your getting maybe you would want to consider not charging more and vice versa.