All Forum Posts by: Kristian Kotov

If you have an off-market property for sale that you are looking to sell in Massachusetts area, I am offering a $5,000 Flat Rate Disposition service for connecting sellers, investors, wholesalers with buyers, payable if and only if any of the buyers I bring you close on the deal.

We work with a database of over 18,000 landlords in Massachusetts, many of which buy off-market properties. All I need is the property address, and information regarding access & walkthrough, and I can bring you a buyer for your off-market deals.

Contact me if you are interested. Thank you. 

Where would I get one of those? 

$50,000 available for Down Payment 

My Client has following Situation: 

1099 Worker; Same Profession the last 8 Years

2023 1099 Gross income $87,000

2022 1099 Gross Income $134,000 

Looking to buy a Condo, SF, or Multi-Fam, and rent out spare rooms & Apartments in the House. 

However, there's a loss on the 2023 Tax Returns, and Net Income is $45,000 in 2022 (Client has lots of writeoffs) 

What loans could I use that only consider:

- Bank Statements 

- 1099s 

- Credit Score 

Please contact me with options. Thank you. 

The Idea is to create a new real estate asset class - the Room Condo. 

The idea is to convert a multi-family building into condos; but not in the traditional sense where you separate pre-existing apartments into their own condos; but in a way where you combine the common areas of all of the apartments in that whole building, and turn the individual rooms within those apartments into condos themselves; thus transforming the hallways, kitchens, bathrooms, living rooms, dining rooms, porches, balconies into common areas of the condos. 

Example: You have a 3-Family Building that has 3bedrooms 1bathroom on each of the three floors - 9Bedrooms 3Bathrooms Three Living Rooms Three Kitchens. You Turn the Living Room into a Fourth Bedroom. Now you have: 12 Bedrooms 3 Bathrooms 3 kitchens One Basement. Each of the 12 Rooms become 12 individual condos - each Condo shares equal access to: 3 Bathrooms, 3 Kitchens, One Basement. 

How to Price the Condos: Do a reverse amortization schedule for a 30-year mortgage based on Room Rental Prices in the Area. If a Room for Rent is worth $1000/month, then reverse amortization at current interest rates between 6.5-8.5% for 30 year mortgage would set the price between $130,000 to $158,000. When Trying to qualify for a traditional loan, lenders usually price your purchasing power at 3x your net income. This means that someone who makes $43,000/year would now eligible to buy this room condo, and have access to a vehicle through which to build equity in an asset as an alternative to paying rent. 

So This means that in my not-so-hypothetical example, I could convert this 9bed 3bath Multi-Family into 12 Condos sharing 3 bathrooms, 3 kitchens, and a Basement. Each of the 12 condos can sell for, at minimum, $130,000 meaning that the overall gross resale value of the building grows to $1,560,000. 

For most investors, purchasing a room condo makes no sense due to all of the associated human element risks. However, to someone who is currently priced out of the condo, SF, and MF market in most cities, this is a dream come true.

Open to Feedback. 

I am asking about what to do once there is $250,000 in funding. Risk Tolerance is Moderate; would be more than open to being a money partner for investors who have deals but not the cash. 

I have a client whose house is currently worth $500,000 who owes $150,000 on the mortgage who is interested in getting a $250,000 second mortage to use as capital to invest in real estate in Massachusetts area. Their goal is to retire in 5 years. How do you advise proceeding? 

 Credit Score is 717-769 range between the different agencies, I don't know about warrantability though - how would this affect the lender's decision? 

Hypothetical Scenario: 

I own a condo in Lowell that I purchased for $213,900. I put down 25% down payment, and got a loan for 75% of the purchase price so I have $53,475 equity in the condo. I have a loan of $160,425. Monthly Rent is $1700. So far, I have collected one month of rent.

I'm looking to purchase another condo in Methuen for $159,000 with another DSCR loan by leveraging existing equity in the condo in Lowell.

Should I do a HELOC, home equity loan, or a cash out refinance here? I need at least 39,750 for the new down payment.

Open to any / all ideas on how to leverage the first condo. 

Location: Lowell MA

Type: 1Bed 1Bath

Price: $210,000

Montly Rent: $1700 ($20,400 Annual) Tenant Pays Own Utililies

Monthly Condo Fee: $239.78 (2,877.36 Annual) Includes Water, Sewer, Master Insurance, Laundry, Elevator, Exterior Maintenance, Snow Removal, Refuse Removal, Management Fee

Taxes: $1772 Annual

Annual Net Income: $15,750.64.

Please let me know if you have any recommendations / offers for me.