All Forum Posts by: Nataly D.

It's best to just dive right in. I did. Don't regret it one bit but investing in RE isn't for everyone. Late night calls, chasing tenants for rent, and dealing with unexpected repairs... just to name a few. I started out with a 4 family. You can buy up to a 4 family and still stay in the residential mortgage side of things versus the commercial 25% down and all that jazz (5+ units). Plus think about it you can live in one of the apartments and rent out the other 3. You get 3 other rents, minimizing your risk in terms of the ability to pay for your mortgage. What are the chances all 3 tenants won't pay? Less than 2 other (triplex) tenants or 1 other (duplex). The other thing to keep in mind is the price is usually 50K more for a 4 family versus a 3 in Worcester, MA. Your mortgage will be a little bit more but you will make more than the additional amount in your mortgage. If you need to talk to anyone let me know. 

I would hold off on showing it. Sometimes people can't use their imagination. Another great idea is if this is an apartment in a multi-family maybe you can show a unit from one of you other tenants, if similar. I always try to do what I think you are trying to do and get people right in there not to miss a month's rent or more. Best of luck to you!

Hey everyone,

My husband is considering purchasing a commercial property for use in his automotive field. There is approximately 10,000 square feet of land that looks to be semi leveled (no trees) just grass and dirt in the back of the building that he was hoping to pave to make room for additional vehicles. I was wondering about costs and permits. Can anyone offer any insights on this before he goes through with the purchase?

Thanks in advance!

@Jahan Habib I don't think I qualify for NACA but have some people in mind that it would help. Thank you for the information. One last thing do you remember who helped you at Bay State? Could you PM me that information?

Thank you!

I will be contacting Bay State they are pretty popular in my area for mortgages.

Now, have you gone to one of those NACA workshops? What was your opinion of the whole membership to that organization? Thoughts? Comments?

@Jahan Habib Have you personally tried any of those lenders or have dealt with these types of restrictions?

I have found THE property. They are immaculate4 units, in a 2, 2 family in one lot style. I walked in and felt as if it was too goof to be true. The property is priced below the market value, to which I would make an offer above the asking anyway as it is extremely competitive in Central MA. I thought it was too good to be true after walking through one of it's 4 units, and indeed it was.

As great and as updated as the property is it won't change the fact that there is a restriction/agreement on the registry of deeds. Basically if I understand it correctly the seller took a loan from an Affordable Housing Program in our area that restricts the Landlord from renting to tenants making more than 110% AMI (Area Median Income), which to be is no big deal as for my area it would be around $70,000 a year for one person anyway,and anyone making that much money isn't going to be renting my apartments. So what's the problem? Well, it turns out no lender wants to lend on a property with a restriction, even if it is the scenario I just explained. I am turning for help from my fellow Biggepocketiers. Has anyone even bought a property with this type of restriction/agreement? If so, was is hard to obtain financing? Any information helps.

Thanks in advance!

You didn't mention a lease but assuming that they are tenants at will I would give them the 30-60 day notice and get some new people in there. The relationship with the current tenants will be a negative one from that point on so prepare for possible eviction costs along with the cost for the upgrades.

My opinion is even if they stay you won't want them to because they will feel like you are taking advantage of them (even though you are only trying to get the rents to a fair market rate) and give you hell on everything you do. Hey, since you're not cash flow positive anyway, what do you have to lose? As long as you can afford to be without rent and incur the costs for improvements and possible legal fees, you will be doing good in the end.

Best of luck!

Brian,

I am glad to see everything went well and you made some money. In terms of the sale of the manufactured home did you have a hard time selling it? I hear financing is hard to obtain so investors have a harder time selling manufactured homes. Did the buyer finance the purchase, or did they pay in cash?

Thanks in advance!

I would say to go out on your own and learn from your own mistakes. Your dad could be right about a recession, it could happen now or many years from now. Sounds like you don't have the patience for the chance that it may take many years.

No matter what the market is like there is always an opportunity to make money. Perhaps instead of telling your dad about the deal and asking for advice make you own judgment about a property and ask him to loan you money, this way it would be more on your dad lending you the money than the property. Either way I wish you luck!