All Forum Posts by: Aaron Montague

@Luke Zagrodny - Welcome to BP! We have one of our markets up near you, Rochester, NH. Would you like to chat about your plans in the area? Hit me up with a message.

 I always worry when I see the term "cash flowed" from someone new to BP. When I use that term I mean it cashed flowed after I accounted for each of these items on a monthly basis:

Did you put a number to each of these? $0.00 is fine, as long as it the correct amount.

@Nick W.

The best way to find a market is to pick one.  If you want to be "local" to Boston, figure out what that means to you. For my business partner and me it means we have properties in NH.

Then start to evaluate deals in those markets. If you want to flip houses, do tens then hundreds of evaluations on flipping in a particular town or region or area; however you define it. Gaining that experience will teach you what to look for when you start to evaluate houses in another market.

@Anthony DalPra - Welcome to BP!!

It sounds like you've found some markets you like. Now it is time to start evaluating deals and bringing those numbers to folks here on BP that have been doing this a while.  

Post some of the deals you have found and let the community give feedback.

@Paul Moracco,

Decide on the type of tenant you want. Are you going to market to college students? Would you prefer a more conventional set of renters? You can certainly switch between the various types though I'd pick one to start to get experience with them.

Are you going to spread your risk around by bringing in investors? You make less money per month but have a larger chunk in your bank account when the final purchase is done.

What type of accounting software are you going to use? Start figuring this out early and you'll make tax time a breeze rather than a panicked headache.

@Lars Andersson - If you are set on a SFR I would plan on making it a short term rental. In south central MA I'd find a place near hospitals or colleges. That type of tenant isn't going to get you as much money per week as ski area type turnover is but should get more than 12 month rentals. This is especially true of college kids as you can rent by the room easily. I would recommend looking at multi-family rentals if you are up to changing your mind on the SFR.

@Timothy Wong - Each condo association is different. You'll need to grab that information from someone, realtor, condo association, etc, that can direct to a website or paper copy. There is no requirement that condo association bylaws are posted online that I'm aware of in MA.

@Account Closed

Question:

What is typical for costs for this inspection by the GC? - This will depend on your relationship. Generally a couple hundred bucks if you've never worked with them before. Probably free if you have a solid working relationship.

Is there anything to be mindful during this inspection period? - The inspection report is a key tool in your buying process. It will give you a wonderful overview of the property that a GC will not. The process shows you almost every issue a place currently has. What you do with that is up to you :)

What language should be included in the offer that is contingent on results from the inspection? - We put something to the effect of "after the inspection we can rescind the offer for any reason" in the P&S. This language gives us the ability to walk away or renegotiate from a strong position. @Alecia Loveless gives a great example of this position above.

Hey @Lars Andersson,

While I assume you mean "South of Boston" but I'm just checking.  Do you mean eastern, central, or western MA?

I don't see a lot of success with SFH rentals in New England though there are folks doing well in certain parts. My immediate reaction would be to buy a short term rental (STR) on the Cape.

@Hajarah Shakir make yourself a spreadsheet, look up some MA lenders and start making calls.  The same banks that had great loans last Tuesday will have a different set of number this week.  Plus you'll need to get used to asking the right questions like: What are your closing fees? How many months of reserves do I need? etc

When you need a loan for your 2nd place in 4/9/16 months, run through the same exercise again.

Hello @Erin Pierce, great name!

Welcome to BP.  It is always good to see fresh faces, especially here in MA. 

Bring forth your questions and we'll answer them as best we can :)