All Forum Posts by: Matt Carr

Hi Pankil,

Thank you for responding to my post. You have a great question and I think this is where a lot of people get into trouble. Fortunately for me, I have been in the home improvement business for about 15 years. With that being said, I have a pretty good idea as to what the improvement costs will be. I can do a lot of it myself and will also run sub contractors and the project myself. That allows me to save on general contractor fee. For you, I would try to reach out and network with trust worthy contractors so that when a property comes, you can get their opinions on the property’s repair needs and be able to provide you an estimate. I would ask friends and family for recommendations for plumbers, carpenters, and electricians. As an electrician, most of my work comes from happy customers making referrals. So for you, if someone is referring someone, it typically means they were happy with them. This can be a useful tool for you. Also, I always plan on around a minimum of 10% of overages when budgeting. 

I hope this helps. Feel free to reach out again and I wish you luck in your next deal.

Best,

Matt

Hi Lien,
Thank you for your comments. This property is in Quincy. You are 100% correct, I feel as though there was a very small window to scoop up a deal towards the beginning of the pandemic.  Renovations are nearly complete and I’m should have the units filled by 9/1. I’ll be looking for my next property I’m metro Boston/south shore. 

Best,

Matt

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $810,000
Cash invested: $65,000

4 Family home with 1 bedroom units

What made you interested in investing in this type of deal?

This property is a solid building with 4 one bedroom units. There will be minimal maintenance and wear and tear with the size of the units. The location is prime with close proximity to commuter train and highway for easy access to Boston

How did you find this deal and how did you negotiate it?

MLS from my realtor. Asking was $899,000, I offered $800,000 just as Boston was starting a shutdown from covid pandemic. Purchase price was settled at $810,000

How did you finance this deal?

Conventional 30 yr mortgage at 3.85% rate, 25% down payment

How did you add value to the deal?

New kitchens, bathrooms, interior/exterior paint, coin op laundry added to basement, driveway replacement

What was the outcome?

Almost done with repairs, units offered at $1750ea, much attention from potential tenants. Shooting for full vacancy by 9/1/20

Lessons learned? Challenges?

Stick to rehab budget. It’s easy to get carried away as remodeling begins. Need to draw a line somewhere because updates can get away from you quickly.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Bobby Petrelli Jr with Harbor One Mortgage
George Pepdjonovic with Realty Edge

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Dorchester.

Purchase price: $465,000
Cash invested: $135,000

My wife and I bought this 3 family home as our first home using an FHA loan and did a house hack for 3 years.

What made you interested in investing in this type of deal?

The idea of house hacking and having 2 rental incomes cover our mortgage

How did you find this deal and how did you negotiate it?

My friend/realtor/mentor showed us the deal and we negotiated buy cost down to $465000 from $499000 after a home inspection came back with numerous issues

How did you finance this deal?

FHA with 3.5% down

How did you add value to the deal?

Used a 203k loan and capital our of pocket

What was the outcome?

After starting an electrical contracting business and starting a family, we finally decided to get back into real estate investing this year. I was able to do a refinance cash out of this property. The bank appraisal can in at $1,500,000, with fair market value around $1,600,000. So in 8 years, purchase price and money invested has almost tripled.

Lessons learned? Challenges?

I wish I stayed on the investment plan all along instead of taking a 8 year break!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Bobby Petrelli Jr with Harbor One Mortgage, George Pepdjonovic with Realty Edge