All Forum Posts by: Robert Leonard

I am also an investor in Massachusetts and always happy to connect/network. I also invest in New Hampshire.

That's a tough question for anyone to give you a definitive answer to because the truth is, it depends. There are advantages to keeping properties under your personal name (types of financing available, ease of financing, down payments, etc.) as well as putting them under an LLC/Corporation (built-in liability protection, etc.).

I would recommend doing a bit of research on the different financing requirements when a property is owned by you personally and when it is owned by an LLC/Corporation.

If you do end up keeping the properties in your name personally, make sure you are fully insured and cover yourself very well with sufficient insurance. 

@Ed Matson All of your information has been very, very helpful. Thank you.

@Ed Matson Any unique insights as to how to find that partner? I would like to go that route, I am more than happy to give an enticing portion of the deal to an investor and to act as the landlord/do the manual work.

@Ed Matson Really, thank you. All of that information is very valuable and I greatly appreciate it.

You both have made a good point - I have requested that the mods remove the pictures with the address. 

One last question, do you have any recommendations on how to find funding for a deal like this? It doesn't seem like a hard money-type deal, and I do not have capital available for 20% down for traditional financing. 

@Dan Weber Thanks for the response! I won't be house hacking the property, it's a straight rental property deal. 

Hi all,

I am a relatively new real estate investor - I have some experience, but it is rather limited. However, I recently came across a deal that I would like to pursue, but I do not have the capital available needed to. The property appears to be in good condition and doesn't need rehabbing, which means hard money likely isn't the best option. However, conventional financing requires 20% down (about $41k in this case). What is the best way to fund the down payment for the conventional financing? Or, is there a better way to finance the whole deal? (Seller financing is not an option). 

It is a two unit property for $200k that is fully rented on one year leases at $1,300/month per unit. My calculations show a cash flow of  about $700 per month ($350 per unit), assuming a 30-year term on a conventional loan with 20% down and a 5% interest rate. It is also in an area I am very familiar with.

Appreciate the input and information!

Robert Leonard

 I was wondering if I should post the address or not but I likely won't act on this deal yet, as I am still working on running the numbers and getting comfortable with that, so I didn't mind sharing. However, you raise a good point, and a question I was wondering too.

@Ed Matson Thank you for your input, I greatly appreciate it. 

No, it doesn't generally take that long to rent it out. The market is strong around there, a lot of job opportunities, commutable distance to a major city (Boston), good school district, etc. I've adjusted the vacancy percentage to 8%, estimating about 1 month of vacancy per year (although this is likely on the high side, I assume being conservative is okay to do, as long as the numbers still work?)

That's a great catch on the vacancy placement costs. Truth be told, I didn't create this template, I just found it on Google and I didn't catch that myself. I certainly do plan on keeping the property management/tenant placement in-house (myself) until my portfolio is big enough to warrant outsourcing. Plus, I don't mind doing that work. I'm not 100% sure what that line item relates to, but I believe your assumption is correct, an estimate for agent commission cost to find a tenant. I've removed these costs. 

Can you elaborate a bit more on "I see CapEx at 10%, but no repairs."? If I understand correctly, the CapEx covers routine maintenance but not major/minor repairs, which is the repairs you were referencing? If so, I'll have to increase my CapEx figures to include an estimation for those repairs.

Thanks again for your input.

Robert Leonard