All Forum Posts by: Paul Bergagna

Second the motion on a good home inspection.  Find someone qualified to look at this type of home and don't cheap out; a good inspection can save you a ton up-front and over time.

Also pay close attention to the foundation (assuming it's a rubble/stone/brink foundation) to ensure that its straight, not bowing or seeping water.  Check for termite damage, evidence of rodents, or birds/squirrels nests in the attic.  

In addition to checking for antiquated wiring and plumbing, also check for signs of asbestos.  Asbestos that interferes with any renovations will have to professionally removed.   

As a SFR I would really only look at the taxes and insurance as landlord expenses. Tenant should be paying utilities direct.

It's prudent to account for vacancy, but with close management, you can reduce to zero with SFR. I would budget for capex/maintenance - but below the line (just make sure that all major issues are addressed prior to renting and then keep a personal reserve, not an expense, going forward).

F Zillow for rent estimates...dig in yourself...look on craigslst first, talk to smaller mom-n-pop brokers for a true rental estimate.  

The 1% rule doesn't dictate your returns, especially in a stronger appreciation market.  Most markets in the general vicinity to NYC, you won't hit 1% rent to price.  

The deal does sound tight, but you have to ask yourself what this the long term goal here? I'm a long term investor, so I'm looking at cap rates (going-in and exit), yield on cost, IRR over the hold period and equity multiple upon sale.

BP preaches the 1% rule, but it shouldn't be anything more than a BOE metric.

Your ARV is based on similar properties in your market. First are budgeting for any major deferred maintenance, paint and spruce up the landscaping for good curb appeal.

Second, pull the most recent sold comps and look at the features that they have.  Do they have hardwoods or carpet?  Look at the level of finishes in the kitchens and baths.  What kind of appliances do they have?  

You really need to do some legwork to see what you're competing with.  Network with some local RE salespeople for advice - after all they'll be selling it for you.

Just really know what you're getting yourself in to.  Speak to as many brokers as you can to educate yourself as to the areas to avoid.  I still occasionally look in Bprt, but the numbers on paper don't tell the full story.  

I work with an investor group looking very heavily in Worcester.  There's a ton of interest, especially in smaller MF (3-4 units) and as such, decent ones move very quickly.  Most of these buildings are 100-years old, and as such suffer from some level of deferred maintenance.  Unless you have local boots on the ground, be wary of buying any property sight unseen.  

I'm sure some people with better experience will chime in, but I'm not sure that there is a straight answer to this.  From my experience, in most municipalities, any change in use, would result with you having to comply with the current codes.  That being said, I have never dealt with Boston, but I would assume that they would be strict, unless you were providing some kind of concession (perhaps an affordable housing component) in exchange for a variance.  

Best thing to do - make an appointment at Boston P+Z, sit down with a Planner for guidance and educating yourself first hand.

I'm in.

Looking at Multi.

Hello - 

I'm looking to network with various tradesmen: GC's, HVAC, Electricians, Plumbers, Painters, Carpenters, etc - in the Bridgeport, Fairfield Co area.

Thanks in advance!