All Forum Posts by: Marc Appel

@Lien Vuong Thanks for the advice. I’m guessing this multiple family was in the south shore? I don’t see anything currently that would be a anything close to this example but I’ll keep looking. Do you know anything about Worcester? The multi family homes are affordable but I’m afraid the rests may be to low and quality of tenants would be tough. Do you have any suggestions what areas I should be concentrating in?

@Dave Foster Thanks Dave, this makes total sense to me. After all the advice it does seem I should sell the property in the spring. It’s been a good run and hope I can turn my profit into another decent investment.

@John Teachout Well it was a 30yr and I Refied to a 15 recently to go from 4.25% to 3.5%. It’s also on a biweekly payment which means a few extra payments a year. Hence why it drops closer to 13yr payoff because of the extra payments. I understand as a real estate cash flow investment standpoint it’s not great. From a convenience and very little work standpoint, it’s working great. I’d say the town is still very much in the rise and prices could increase even more in the coming years. I’m 36yrs old and would be nice to have a 500K house paid off in 13yrs with cash flow on top of that. I have another full time job and don’t plan on going 100% into real estate so I’m not sure. I’d love to find a multi family good deal but that’s no easy task around here.

@Soh Tanaka I understand the thinking, the problem is, the Boston area and suburbs in Massachusetts, are very expensive. A decent size 100K Condo would probably need another 50-100K to get it to a decent rental status.

What if I held for another five years, built up more equity, then sell the house and invest that into a 3+ multi family which would run anywhere from 500-1.5mil in an up and coming town?

@Soh Tanaka the mortgage balance sits at $240K. If I put extra payments towards the mortgage and it’s paid off in 10 years won’t that become great cash flow? Right now taxes are $4,500 and insurance is $900 per year.

Thanks for your help,

Marc

I own a single family in Waltham, MA. 

Mortgage taxes and insurance are $2,173 a month. Rent is $2575 a month. I purchased the home for $346K and is now worth around $450K. Currently 13 years left on the mortgage. Windows and siding need to be replaced for a total of 25K. I have already put 25K into the home. Do I put another 25K in and hold for a long term rental property or sell the place as is if I can get $450K? If I sell I would use that money to invest in a multi family. 

Thank you very much for your time,

Marc

Thanks Thomas! Also thank you Jake, makes more sense to refi in a new home and find a better valued rental property.

This all makes sense, if it helps here is the current numbers on our property. Purchased for 510K, based off of our neighbors who sold the same condo as ours went for 650K. Yearly: Condo Fees: $4820 Property Tax: $5371.63 Water/Sewer: $477.68 Same condos as ours the neighbors have rented out there units for $3500 a month.

I’m 34, lots of years left to invest. My wife and I are lucky enough to have our home paid off. We are looking to move into a similar priced home. Is it more economical to sell our home and put all that money into a new home so we don’t need mortgage, or take out a mortgage on our current home and turn it into a rental property. Take the money we mortgaged on our current home and use that money for a down payment on our new home and take out another mortgage. Thanks for your thoughts, Marc

Thanks, all very helpful!