All Forum Posts by: Nick Foundas

I heard to stay away from the "Main South" area.  Other than that Im not 100% sure of where to stay away from, I hear it can change a lot from street to street

Derek, I think your in a great situation to get started in Real Estate. In your particular situation and taking into account what you have for cash on hand, I would suggest you look to purchase a small multi-family (2, 3 or 4 unit) in a desirable rental area. As an owner-occupant you can purchase with a low down payment (3.5% down payment with FHA loan) and you can live in 1 unit and rent out the remaining units. The rents should take care of the majority, if not all of the mortgage and will allow you to continue to save more money for your next project. You can also look to apply for a 203k loan as part of the FHA program and incorporate any rehab costs into the loan which will essentially help you increase the value of the property and increase your equity right away (you can search BP or google FHA loans and 203k loans for more information etc). Going this route will also give you the opportunity to experience landlording first hand. If you are able to find a nice multi family house for the right price then this approach will open a lot of doors for your next project. Also, buying a home for yourself will also greatly increase your Credit Score.

Good evening! We are in the process of researching local banks in order to set up a HELOC. Wanted to reach out and see if anyone has any suggestions or good experiences working with a local community bank. Also has anyone found a local bank that will offer more than 80% LTV? Thanks!!

Hello, I just want to make sure I understand how the Cash Out Refi works since I have not done one before. If the house was purchased for $185k and then appraised for $265k, 70% LTV equals $185,500. So in order to determine how much cash you walk away with at the closing table dont you have to subtract the loan balance from $185,500? So wouldnt that mean there is only $500 cash back at closing if the original loan was $185k? Sorry just hoping to understand how the process works. Thanks!

Hi David, just saw your post, Im in search for a property in the Worcester area as well and am considering a Property Manager, would you be able to recommend a good PM?

Im a new Investor considering Worcester as well.  Any experts that can provide insight as to where they see the Worcester market heading over the next several years?  Some areas seem to provide decent rental income and the prices for multi's still appear low (at least in comparison to other parts of eastern Mass) so it seems like a great time to jump in.  Is there a lot of anticipated growth in the city?  There are so many good schools in the area so you have to think good jobs should follow but Worcester still seems to be stuck with limited appreciation over the years.  Does anyone have a good Investor friendly Agent in Worcester they recommend?

what's up Taylor, thanks for breaking the seal, I attended Assumption and am now looking to invest in multi fam properties in the Worcester area, looking forward to connecting in the sub forums!

Hi Anthony, I'm a local Realtor, based out of Watertown, MA but I service areas throughout Mass. If you need assistance in the Massachusetts market let me know and I would be happy to chat. Do you have any specific towns/areas that you were looking to target? Are you looking to buy/hold, flip or condo conversion? I'm currently working with buyers looking for multi's in the Medford, Wakefield, Reading areas. The multi family market in Greater Boston is extremely competitive right now competing with Buy and hold investors as well as investors looking for condo conversion projects. You mentioned FHA financing, this is a great program only requiring 3.5% down payment however this would require that you live in the property for one year, also since it's such a competitive market the chances of an offer with 3.5% down payment being accepted is slim (unless you find something off market) since other investors are putting down well over 20% which is much more attractive to a Seller. Those are some things you will want to consider with FHA. My cell is below if you want to chat.

Nick

781-962-9247

Hi Adam thanks for your response and sharing your personal experience, very helpful! You mentioned the bank was estimating what your monthly payment would be for the HELOC. I thought that was interesting, I assume that estimation was occuring during the investment property loan process. Why and how could they make an estimation if you havent drawn any funds from the HELOC? I assume they are just anticipating you would be using some of the funds for repairs and are trying to cover all their bases when estimating your true DTI.

Thank you Kurt and Jerry, really appreciate the responses!