All Forum Posts by: Mike Maloney

Hi Andrew,

Owning can definitley be more affordable than renting if done right. I'd say how much you put down depends on your plan. If you want to scale up and buy more faster putting less down is the best plan. However if you want to generate more cash flow putting 15% down will help you because not only is it a lower montly payment but when you hit 20% equity they will remove your PMI.

If you put down 5% I would stronly encourage you living in the Airbnb if possible and renting out the home so you can generate even more income

If you look at it like this it'll help

Monthly payment < Potential income + current rent

If you can move and reduce your cost of living that is always great at the bare minimum they should equal each other in my opinion because at least you'll have equity if the market you are choosing is a strong equity market.

Hi Carline,

I know there are down payment assistance programs for properties 4 units or under but anything over that is considered commercial and to my knowledge there are no loan programs out there.

I'm not sure if the down payment assistance programs are still active but I can find out if you'd like!

Welcome Tim,

As someone who just recently started and was finally able to buy their first property there is definitely a lot to it, you'll always be learning so don't try to know it all at once. My advice would be to find something that interests you and start with that. For instance if you are handy or have an understanding of construction do flips. If you like networking or don't have a lot of capital maybe becoming an agent would be good.

Quote from @Melanie P.:

You must deposit to a trust account at a Mass bank. You will need to have your banker set up a business checking account under your name, next line should say MASS. SECURITY DEPOSIT TRUST ACCOUNT
In the bank's system the banker needs to set you as Trustee.

Within 30 days of depositing the security deposit, the landlord must give the tenant in writing:

• The name and location of the bank where the deposit is
• The amount of the deposit
• The account number

Thanks for sharing your knowledge, what I'm really looking for is what specific banks do this and if any of them automatically pay the interest annually, I was already familiar with the laws, thanks!

Quote from @Chris Seveney:

Quote from @Mike Maloney:

I am looking for a bank that holds tenants security deposits and automatically pays the interest directly to the tenant annually, see the rest for description.

Hello, I am a first time property owner and am trying to figure out where it is best to deposit security deposits, I am aware that it must be deposited in an interest bearing account per MASS law but also the tenant needs to receive the interest annually and I do not want to have to manually perform this task. A high yield or higher than average interest rate would be ideal but that is my main concern.

Thanks

 you will not find a bank that does that. YOU will need to send the money to the individual and do this manually. No way around it. 

My mom was a property manager for 20 years and she said Sovereign bank used to do it but they are no longer around.

Quote from @Ethan Piani:

One important thing to note is that I recently graduated from college in 2022, and my income for that tax year was approximately $40K (from May 15 to December 31). In 2023, my first full-time year, my income was $145K, bringing my total (2-year average) net income to about $85K. The problem I have is that even though I have reasonable savings and income, the lower income from the 2022 tax year is getting in the way of qualifying for a property that I can afford with my actual income of $130-145K.

Find another lender I ran into the same problem not all of them average out your income, I noticed banks average out your past 2 years but mortgage companies do not I could connect you with my lender if you'd like

It's tough for me to answer on a learning curve question I went to high school for architecture and college for construction management and I've never personally flipped a house, although I know how to budget and schedule it. It's up to you but flipping is obviously more risky... also depends how handy and knowledgeable you are, if you aren't able to do things yourself you need to budget for labor costs... on top of holding costs and material costs. I am sure it is possible to do well on a flip but most stories I hear people take anywhere from 6 months to 2 years and on their first barely break even because they are learning.

Hey Ethan, I'm also a MA investor I bought my first property a month ago about an hour south of Boston (where I am from). I'd recommend doing owner occ so that way you don't have to use most of your savings to buy the property, you could put down 3-5% instead of 20. I also have worked for a flipper and work in construction and if you have no construction knowledge it would be challenging but not impossible. Also something worth noting is New Hampshire has higher property taxes. If you want to avoid Boston prices but work in Boston I'd recommend finding something as far away as you're willing to commute, live in one unit and rent out the others. If you want to pursue flipping you could start off small with something that needs updating and general repairs rather than a massive flip, that is what I am currently doing. Hope this helps!

I am looking for a bank that holds tenants security deposits and automatically pays the interest directly to the tenant annually, see the rest for description.

Hello, I am a first time property owner and am trying to figure out where it is best to deposit security deposits, I am aware that it must be deposited in an interest bearing account per MASS law but also the tenant needs to receive the interest annually and I do not want to have to manually perform this task. A high yield or higher than average interest rate would be ideal but that is my main concern.

Thanks

I was able to find one after spending an hour searching, it's impossible to get a hold of anyone over the phone, thank you for the advice