All Forum Posts by: Ryan M.

Interesting perspectives for sure.

@Dan Smith Ya I am always interested in learning more about a prospective city I might invest in.  I'll PM you.

Hey everyone, looking forward to tomorrow evening.  I will be the very tall 6'6 guy standing in the outdoor area/bar.  

I look forward to meeting everyone!

I drove through Haverhill last night looking at some multis and of course, they happened to be in some of the roughest neighborhoods of Haverhill.

Lowell, has its good and bad as well.  

What does the BP Mass group think of Lowell vs Haverhill?

@Dean Bokousky While I agree to an extent that Haverhill has its issues.  There are crimes and drugs, and murder in the town, I am optimistic and speculating that towns like Methuen and Haverhill will develop in the next 10 years much like Somerville and Cambridge did.   Somerville used to be a DUMP 20 years ago that parents didn't want anything to do with it.  Now it is super expensive to live there (I did and needed to move to Medford to buy a place I could afford).  Haverhill has been putting money into their town, reinvesting in the downtown area and schools are improving.  Also, people can't afford to live not only inside 95 loop but also the 495 loop.  So what towns are people who make a moderate income going to live?  Lowell, Haverhill, Framingham ect. - or at least that's my guess.

@Matt Lefebvre made good points to me in PM that his area around Manchester has great neighborhoods and bad ones, and Haverhill is no different.   

@Becky C. I do appreciate you sharing your concerns and frustrations, it validates what I am feeling and seeing.  I am not the only one have troubles believing the numbers I am seeing, but the calculator is right I guess and the numbers are just too inflated at the moment.

Great advice guys.  I didn't know about the 100x rule or the 1% rule.  Thanks a lot!

Very good advice.  Sent you a PM.

Also, the one he was talking about with 35% financing was this MLS #72215708 81 Bellevue Avenue Haverhill MA. We like it cause it's 4 units of 2/1's.

Rent is 3350/month taxes $4200/year. He's saying this is a GRM of 8.7. Listing is at 375k but we were doing calculations at 350k.

I guess maybe the prices are just too high....

BTW listened to your podcast. Side bar, but how the hell did you get banks to give you an unsecured LOC??

What do you usually put in (percentage wise) for expenses on BP calc?  40% total (meaning 10% each?) 

My apologies.

Total rent per month is 2600 and taxes are 5k a year

So I am getting pretty frustrated here. Every property of the 20-30 I have looked at has been bad deals.

For example check out MLS number: 72154014. It's a property I would be interested in buying, but at the price it's listed at, there is no way. Even if I lower the price 20k it still will be a negative cash flow each month.

I put 1500 for closing costs, 5% interest.  5% vacancy, 5% repairs and maintenance, 5% capex and 8% property managment fee.

I get that @Brandon Turner in his podcasts says, "find the price that makes it work" but the Boston market is very hot, and while this is Nashua NH, many many people buy in NH and commute to Boston area jobs every day.  People aren't lowering their prices 20,30 or 40k.  They are getting offers over asking price and bidding wars occur.  Now, this might not be happening in Southern NH and Northern MA, but inside of I-495 it's happening all the time.

So am I doing something wrong here?  Are my expense numbers correct, too low, or not high enough?

Seems like I am spinning my wheels with this ****.

What makes it even more frustrating is I have a mentor who is claiming some of these properties are home runs (guy owns 300 doors and knows what he is talking about) but he does quick numbers like Cap rates, Gross Income Multiplier, and quick 35% "extremely high" overhead before P&I.  He's saying he'll go in on the deal to prove to me it's a good deal, but yet the BP calculator is saying the exact opposite of what a guy who makes a **** ton of money per month is saying.  So, as you can tell I am very frustrated and starting not to believe in this BP calculator.  

Someone show me the error of my ways.