All Forum Posts by: Michael Guay

@Todd Wheatley You mentioned some lenders still offering 5% down on duplexes in MA. Have you come across any lenders still offering this for 3-families as well?

0 Votes

@Jason Bee My business partner and I @Ethan McRae are in the same situation. We're looking to house hack a 3-family north of Boston as the number seems to work best in this area (Lynn especially). Really hard to cash flow in anything other than a 3-family. The competition is fierce right now with low supply and we're frequently seeing cash buyers putting in offers way over asking so it's making things a bit difficult.

All properties we do see that actually cash flow are in very rough areas or need considerable work. We're still looking every day and have in one offer on an off-market 3-family in Lynn.

4 Votes

The government recently allowed citizens to withdraw up to $100,000 from their retirement accounts via hardship distributions (no 10% penalty that normally occurs from withdrawing before 59.5 years old)

https://www.fool.com/retirement/2020/03/29/coronavirus-relief-the-unique-way-tap-retirement-s.aspx

0 Votes

Originally posted by @Kyle Mccaw:

Check out AirBnB. Great news on graduation and the jobs. Buying rental property early in your career will pay off huge in the long run.

Thanks much! We'll definitely take a look at Airbnb and see if we can snag a decent deal there.

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Hi,

My business partner and I are looking to secure a multi-family house hack in the Boston area. We've been pre-approved and are currently interviewing other lenders & agents. While we wait to find our first deal to unfold, we are in need of housing in the Boston area as we both have jobs lined up in the city after our impending graduation from school.

Writing to ask if anyone on the forums is looking to make a deal for a medium/short term rental while we push the process forward. We both have good jobs, we just don't want to enter into a year-long lease agreement while we end up securing a deal in the next 2-3 months.

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Originally posted by @Llewelyn A.:

@Lance G.

Hi Lance, I have done what you are planning on doing 21 years ago.

However, you did not mention this would be a Single Family, 2 Unit building or multi-family.

The first property I bought with my Business Partner was a 2 family. We house hacked it and rented out an apt.

That taught us how to become good Landlords through experience.

From then on, we expanded our Portfolio to 10 buildings, 30 apts, 65 tenants in Brooklyn, NYC with an Asset value of about $20 Million.

We could not have built the Portfolio without Partners.

In regards to Liability, since you are House Hacking, research Home Insurance that includes Landlord Liability in addition to the normal insurance.

As long as you get the appropriate Insurance, you'll be fine.

I would advise you take your first House Hack to learn how to become a good Landlord, don't be negligent so you can avoid being sued (or at least minimize the chance of being sued), learn tenant screening REALLY, REALLY well (this is where beginners tend to fail and put in a terrible tenant), establish a separate Bank Account solely for the rental and build it up as a business.

If you find yourself still motivated by next year, buy a 2nd one but this time, you will be much more experienced and knowledgeable.

This is exactly what I'm planning on doing! Thanks for the insights, Llewelyn.

0 Votes

Originally posted by @Austin Allan:

I'm currently under contract on a house that I am purchasing with a friend. I was going to take me longer than I wanted to have all the cash I needed to purchase alone. In my mind the ability to eliminate my housing costs was worth it. My partner is in the military so he won't be living in the house and we still get 4 bedrooms to rent out.

In my mind, if the plan makes sense and proper protection is offered for everyone go for it. Everyone's first step is a little different.

Thanks, Austin! I am curious, are you the only person whose name/credit is used for all loans, paperwork, etc - and your friend simply gave you money to contribute. Also, did you guys sign any sort of agreement between one another, or are you trusting one another? Thanks

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Originally posted by @Jonathan Bombaci:

You can definitely buy with a friend to make it easier. Real Estate is odd in the sense that partnership tend to be easier since it revolves around a physical asset. I think buying with a friend is a good idea if you can’t do it on your own.

That being said Id avoid putting it in a llc. By putting it in a llc you now are ineligible for the low downpayment loans. Banks will see it as a strict investment property which will require 20-25% downpayment.

Thanks for the insights, Jonathan! I'll definitely avoid forming an LLC in this case, since we'll want to move forward with the 3.5% FHA loan.

1 Vote

Hi,

I'm currently in the process of looking for property to house hack in the Boston area after I graduate college in the spring. Since Boston is such a hot market and prices are much higher than other markets, I was thinking about going in on the house hack together with some friends so we could pool our funds together and put down a larger down payment to get a larger/nicer property.

Beyond the normal concerns of going into business with friends, does this seem like a bad idea? I'm curious as to what others think. We would all be on the same page regarding the exit strategy, and I'm also wondering if logistically it makes the most sense to form an LLC since we'd be combining our assets together.

Thanks for your time,

Michael

1 Vote

Originally posted by @Michael Facchini:

@Michael Guay, first off, congrats on getting started early on in life with real estate investing! The sooner the better, so kudos for making the decision to get the ball rolling. As to your questions above, yes Chicago will seem like a heck of a deal compared to Boston. We have a lot of investors/buyers that come in from the 2 coasts, looking for all that a major city has to offer, but then are shocked by how reasonable prices are here...it's all relative of course. That said, like any city there are areas that are more expensive and those that are cheaper, and there are reasons for both. I'd say that $180k for a home, let alone that size, anywhere near the city would suggest that it needs a lot of work and/or it's in a "rougher neighborhood". As with any real estate purchase, you'd want to get acquainted with the market and sub-markets, and from there determine which provide you the opportunities you're looking for. Would you be looking to move here too, or being a remote investor/landlord? There are challenges to that, so make sure you give this all fair consideration before diving in. Hope that helps, and happy hunting!

Thanks, Michael! I'm super excited to get started. All of the feedback has been great on this post. After reviewing the property I originally mentioned, I see it is now in a rougher neighborhood, which likely explains the discounted price.

I definitely would move to Chicago and execute a house hack if I found good cash flowing property. I'm looking to go into Software Engineering as a full-time job, so there definitely isn't a shortage of those jobs.

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All Forum Posts by: Michael Guay

Michael Guay has started 4 posts and replied 14 times.

Post: House Hack Financing strategy for multi-family in Boston

Post: Where to invest in Massachusetts in 2020?

Post: Borrowing from IRA to buy rentals

Post: Looking to rent out a STR while I search for first deal

Post: Looking to rent out a STR while I search for first deal

Post: Group House Hack - Bad Idea?

Post: Group House Hack - Bad Idea?

Post: Group House Hack - Bad Idea?

Post: Group House Hack - Bad Idea?

Post: Chicago Housing Market - Too Good To Be True?