All Forum Posts by: Ryan Jopson

@Brian H. I am literally in the same exact situation as you have previously described (Gf's a nurse, interested in the concept, doesn't deal well with information overload or advanced math/numbers, but truly is starting to understand the benefits of passive income, etc)

If you wouldn't mind keeping me in the loop and letting me know what you decide to do it would be much appreciated upon my behalf. I have been debating the "first piece" of information to introduce her to and have yet to make a decision

I don't want it to backfire on me and have her get overwhelmed and stressed out about the whole thing so I believe it is crucial that first piece of learning material is a perfect fit for her style and mindset

If anyone else has suggestions please advise

Thank you to all

Ryan J

@Moshe H. Thank you for the detailed account of your RE Investing history and associated stories! This is really great stuff and thank you again for sharing. I wish you the very best in court tomorrow and truly hope the outcome is in your favor.

Best,

Ryan J

I can completely understand your strategy. I did exactly what you are describing! Best wishes going forward & I hope you find the perfect property

Ryan J

@Moshe H. I am baffled you were able to acquire 4 units for 85K! That is incredibly cheap at cost/door. Best wishes going forward with that property the numbers do look enticing

Ryan J 

@Nick Mulligan

Shot in the dark here but have you done any research into the Western, MA market? I don't know your background or if you are looking to invest somewhat locally to Plymouth but I figured I'd throw it out there

Kind Regards,

Ryan J

@John-David Herlihy great question and I have this debate more often than not with my business associates. Throughout a majority of our acquisitions we have found that most tenants in place are paying under market for units. Typically we see as-is rents in the 700-850 range and we are confident in our ability to go in rehab, refresh, and jack up those rents north of 1000/month. Based on this practice, we typically find it most convenient and most beneficial to purchase property with vacant units.

Now I understand when analyzing larger complexes of 8+ units this will not always be the case. As most lenders will require the property to generate and produce income that meet their standards. In this case, I would believe a proven rental history is an absolute must. Long term tenants paying at or near market rate rent with low vacancy rates is what I would need to consider a purchase of that magnitude.

Again, our business model revolves around 2-4 unit properties, so our standards are vastly different. Great point and great topic.

Have you begun to look for property within the western MA market?

Ryan J

Thank you to @Jonathan R McLaughlin, @Danielle McKahn, @Christopher James, and @Moshe H. for all your feedback and input thus far

Moshe, if you don't mind me asking...Could you share some of your numbers related to your multi-family acquisitions out in North Adams

Multiple associates of mine have always debated on the strategy you just described...More specifically related to the Springfield area. Cash flows are substantially higher compared to other surrounding markets but is it really worth the headache?

What about the purchases of larger complexes, say 8+ units? How much MORE cashflow does the property have to generate in order to make it worth your time, in comparison to managing smaller properties comprised of 2-3 units.  

I would think the answer to this revolves around one's tolerance to risk and other related factors. But what would everyone's personal opinion be? If you can cash flow 200/door on a 3-family but cash flow 225/door on an 8 family does it make sense if you take into account all the associated variables and factors resembling risk?

Ryan J

@Jonathan R McLaughlin this was absolutely on point. Thank you for such a strong, well-thought out, and informative response. There is a whole book of knowledge within this one post and I very much appreciate you sharing.

I've read this 3 times in the past 10 minutes trying to take everything in. I will let this marinate for a while before offering my thoughts. I can relate to everything you have stated.

"For the singles/small multies I think lots of forced appreciation is possible given the tired houses mentioned above. You aren't going to make a killing on a flip cause things just aren't worth that much, but the numbers are manageable. You could probably do a true 200-300 a month on a buy and hold, even off of MLS and maybe not have too many crises to manage"

I couldn't agree with you more about the comment you mentioned above. I have seen frequent evidence of this within my market and even have experienced it myself. A couple of my business associates would whole-heartedly agree as well.

If time allows and you wish to continue this, I would sincerely  enjoy reading more

Ryan J

The Western, MA market is absolutely on fire right now. Especially the multi-family market, specifically in Hamden and Hampshire county.

What are everyone's opinions on the longevity and sustainability of this significant surge in activity within this market. Investors are you anticipating a major upside in appreciation further down the line (10-20 years). Where do you see the direction of this market heading? What do your cash flow and cap rate %'s look like? Looking to spark a discussion here. I don't think this forum gets the attention it truly deserves.

So, who wants to jump in and share their insight or perspective on the matter?

Sincerely,

Ryan J

@Ryan Breen

Ryan,

Another strategy you could try is put a contingency clause in your offer stating:

"Property to be vacant upon closing date and free and clear of all personal property"

Essentially, this makes your current problem become the sellers problem.

To try and entice the seller maybe you offer anywhere from 1-5K over asking price. Roll the additional cost into your mortgage and it really wont have to much of an affect on your monthly payment.

Just a thought, keep us posted and best wishes!

Ryan J.