All Forum Posts by: Patrick McCann

Quote from @Ryan Randall:

Quote from @Ryan Coburn:

Hey Ryan - I just went through this with my property in Rollinsford. Very old, so to rebuild with exact materials exceeded the maximum on the original residential policy I had in place with Andover after their inspection. Because of other liabilities (pool, more than 2 units, etc) it was brutal to find something. I did end up getting offers for a surplus lines residential policy, and then landed on a business owner policy through Vermont Mutual. I’m happy to connect you to brokers who sorted it out, 2 agencies I trust, just let me know. 

 That would be great. I'm just over in Dover

There’s a real estate investors meetup this Monday 8/12 6PM at Chapel and Main in Dover

Hi Cade, I’m guessing you plan to invest along the VT/NH border? I don’t know of any meetup in that part of NH, nor do I know any investors in that area. I’d suggest asking the local title company/real estate agents who the investors are. Or look at the property record cards in the towns you plan to invest for the multi families and see whose names/llc’s continually come up. It’s a part of the state many investors stay away from because they don’t know the market, if you’re from the area and know it well this could be advantage for you!

Quote from @Jacorion Williams:

Quote from @Patrick McCann:

Currently in my first house hack, a duplex I purchased in December 2022 for 444k with an 3.5% FHA, the property was in just good enough condition to qualify. When we moved in we were using the down stairs units kitchen and bathroom and living upstairs because the appliances upstairs weren't really usable and the shower had cracks. I've been rehabbing it myself since day 1. Focused on getting the rental unit finished first and did that in 2 months, have had it leased for $2300 since. Slowly finishing our unit, I gutted our kitchen and totally re did it, house is 150+ years old so I've have to do many repairs to the plaster walls, still a bathroom to gut and exterior work to do. Biggest problem I've faced is running out of money and having to save again to continue rehabbing, but duplex's in my area are now trading between 575-675k so once work is completed I expect to have 200k+ in equity. Biggest regret, not starting sooner! I waited till 29 when I knew my whole adult life it was something I wanted to do but always thought I needed more money saved or that I couldn't afford it when realistically I could've done it several years prior at a much lower price and interest rate as well. I didn't actually start researching about real estate investing till after I already started looking at properties.

Well better late than never! On the bright side you were able to add in equity! 
How long did it take since purchasing the property with having to continuously rehab at the same time? 

 Still going haha. Still have a bathroom to gut, walls and stairway to be sanded/painted, exterior trim to be replaced and the whole exterior painted.

Currently in my first house hack, a duplex I purchased in December 2022 for 444k with an 3.5% FHA, the property was in just good enough condition to qualify. When we moved in we were using the down stairs units kitchen and bathroom and living upstairs because the appliances upstairs weren't really usable and the shower had cracks. I've been rehabbing it myself since day 1. Focused on getting the rental unit finished first and did that in 2 months, have had it leased for $2300 since. Slowly finishing our unit, I gutted our kitchen and totally re did it, house is 150+ years old so I've have to do many repairs to the plaster walls, still a bathroom to gut and exterior work to do. Biggest problem I've faced is running out of money and having to save again to continue rehabbing, but duplex's in my area are now trading between 575-675k so once work is completed I expect to have 200k+ in equity. Biggest regret, not starting sooner! I waited till 29 when I knew my whole adult life it was something I wanted to do but always thought I needed more money saved or that I couldn't afford it when realistically I could've done it several years prior at a much lower price and interest rate as well. I didn't actually start researching about real estate investing till after I already started looking at properties.

Quote from @Ethan Piani:

Thank you for your response!

I am currently in a lease that ends in August 2025. I'm very interested in house hacking and particularly like the idea of a live-in flip, especially with a multi-family property. My main concern is the limited cash I have available for the down payment and renovation costs. The prices of multi-family homes are just high enough to pose a challenge. I think the BRRR strategy would be an excellent option as it provides several positive exit strategies. Would you recommend bringing in a partner to help with capital and construction costs in exchange for equity in the property?

I will definitely check out Axel's podcast. Thanks again.

I think you have a pretty good cash position for that strategy actually. Utilize a 5% down conventional loan say on 600k small multI family that needs some work but is livable and financeable and that’s 30k, leaves you a good buffer for construction cost and reserves. I like the 5% conventional over fha because you can drop pmi once you have 20% equity without refinancing and the appraisal inspection requirements on condition are less strict. Could be tough to find within Boston but surrounding areas possible. Probably not great cashflow but the appreciation will make up for that and in time it will cashflow better. 

I actually got a message today about a meetup next Tuesday in Beverly MA from a friend in real estate in mass of you’re interested in more details. 

First off congrats on setting yourself up to be in great start position at a young age! I do think southern NH/seacoast are great markets to invest in with potential for cashflow and high appreciation along with very low vacancy. I grew up in southern NH and now live in the seacoast area where I invest, recently licensed in NH as well.

What is your current living situation? Have you considered house hacking a small multi? For perspective I purchased a duplex in late 2022 using an FHA loan for 444k that I've been rehabbing while living in it as well as renting one unit, once the rehab is complete this summer comps are showing I'll have roughly 200k in equity to tap into. BRRR deal could get you the cashflow and the value add payout without having to pay capital gains on the equity.

If you’re not fatalist with the Multifamily Wealth podcast with Axel Ragnarson I’d highly suggest checking it out. Axel is a young guy living in Boston that invest in NH with a ton of multifamily knowledge.
 

Hi Mitch,

I’m not in Maine but just on the other side of the river in Dover, New Hampshire. I’d be happy to discuss any questions you have about NH. I currently house hack a duplex that I plan to cash out refi soon to repeat. I have a background in construction and recently became a licensed realtor in NH.

Why would you choose Maine? Not that it’s a bad choice but what’s your reason for choosing there. If you’re not using a primary residence loan then I’d go for the triple because it would likely cash flow better than a duplex

Quote from @Kiran Asknani:

Hi Everyone,

I'm looking for suggestions/referrals for STR agents /realtors in Maine Ellsworth area.

Thanks

Hi Kiran, 

I’m pretty familiar with the Ellsworth area as my mother in laws family is from that area and her family has a camp on branch lake in Ellsworth. I’m currently in the course to be come an agent, but in NH. I’m reaching out to my network for suggestions for you! 

Hi Devon, 

I house hack a duplex in Dover with my wife and our dog. I have a background in construction and I am currently taking the course for a NH real estate license. I am very passionate about real estate investing, my wife supports it but isn't really actively involved in the real estate investing. I'd gladly meet up with you both at Flight or somewhere for coffee.