All Forum Posts by: Michael Zack

@Dan Ward Thank you for the feedback. The walls upstairs are in good shape. The walls downstairs are in pretty good shape. I need to do some patchwork before painting. How do I determine what the walls are made of? I don't think I need to do the ceilings, but I need to reassess. So I shouldn't use any color, but rather paint the entire unit the same color? Won't this make it less appealing to prospective tenants? 

Dan Ward I just bought a duplex (living in one unit and renting the other) and I'm looking to repaint the entire inside of the house. In your opinion, what's the best primer/paint to use? Thanks!

I was able to get the seller to give back $12,500. Most of that will cover closing costs and the remaining will reduce the offer price. As people have mentioned, it's a hot market and can't be too picky right now. I'll be getting contractors in shortly after closing to take a look at the severity. Couldn't pass this one up as it's in too good of a location. Hopefully my first investment is a good one!

@Matt Madalis The 20K was a VERY rough estimate of the repairs. It's tough to estimate the cost of repairs because we really don't have a great idea on how much rotting there is until all of the clapboard is ripped off. I didn't think going back to the seller with a number higher than that would have been a great idea since there was so much interest in this property. In terms of cash flow, this house is a gem. It will be producing $2200 in one unit while I live in the other unit (Monthly mortgage is $2,650). It's just a matter of determining if it's worth the risk. 

I had my home inspection yesterday and the inspector noticed some rotting underneath the clapboard siding (pretty bad in some areas). There were a few other things he mentioned as well (replacement of some support beams in the basement, mold inspection in the attic, gutters should be added). I've been searching for a 2-family for a couple years now and this has been the best one I've seen in the metro Boston area. It's located within a 5 minute walk from the commuter rail in a developing area. I went back to the seller and asked for 20k and they agreed to 10k. There were 5 other offers on the house so I'm not sure if I should push back for the 20k or accept their counter. Thoughts?

I was also wondering the same thing Tyler. I'm a new investor and was wondering if I should wait until housing prices started to drop. However, as mentioned previously, borrowing costs are at all time lows. I decided to buy a 2 family (just had an offer accepted on my first property), have the majority of my mortgage covered by living in one unit and renting the other, and save as much as I can for when the market does cool off. Hopefully by that time I'll have enough cash stashed to invest in more properties.

Jeff Dulla Thanks for the insight. The lender also gave me the below option which I'm not too familiar with. Thoughts? Or using a 10/1; we get 4.0% $432,000 at 4.0% 30 PMT $2062.44 RE Tax $350 Ins $175 PMT $2587.44 The 10/1 has a lower rate; fixed for 10 years then can adjust annually.

How do I evaluate whether this is good financing or not? Are rates different for multi families? I thought rates on 30 year fixed right now were around 4.0%... With 20% down $108,000 down payment; add in closing costs $3965 (Two Family) and prepaids $5268; total funds needed is$117,223 (includes first year ins premium). With 20% down we can get 4.25% 30 fixed $432,000 at 4.25% PMT is $2125.18 RE Tax $350 Home insurance $175 PMT $2650.18 monthly (PITI)

I just had an offer on my first property accepted 25 minutes south of Boston! 2-family was listed for 500k and my offer was for 540k (6 strong offers and lots of interest at the open house). My mortgage payment will be $2,850 and total rents for both units will be approximately $3,800 (I'll be owner occupied at first). Looking for any tips on how to write a lease, get a tenant, etc. Thanks everyone!

We're ready to buy our first house and I know that starting with a multifamily is the first step towards financial freedom. My wife is going along with it (I think only because I saved the down payment money over the past several years), but I wish she would be excited about the thought of buying a multi and working towards being financially free. How do I get her on board?!?!