All Forum Posts by: Steven Caligaris

Hi Patrick, I have resided in Worcester the past 15+ years and if you are looking for the top realtor in Worcester who deals a lot within Worcester I would highly recommend Katie Bilotta from ERA Realty. She's done countless investment deals, has valuable insider knowledge, and is a pretty straight shooter and to work with her is incredibly pleasant. If you call her, which I highly suggest, then mention that you got the connection from me via BiggerPockets. Maybe she will finally become a member! Best of luck, Steven (Contact info below) Katie Bilotta, Realtor® ERA Key Realty Services 29 East Mountain Street Worcester, MA 01606 MA Real Estate License #9045473

I've been watching my market and most homes are going for listing price and sell within 1-2weeks. Barring any unforeseen costs, I think this is one of the easier ways for me to enter the REI world. It just goes to show that not all deals are done through the MLS!

Now to do my due diligence!

@Mark Nolan Thank you!

@Kristopher Hanks I've heard people aiming for $100/unit but then I see some properties and they are making double or triple that amount so I wanted to see if I was missing anything and make sure it was a true ~$100/unit I'll be earning. 

My CapEx is indeed on the conservative side and I haven't gone through the home inspection but I think $100 would actually be re-allocated to Lawn/Snow and set it at $200.

The reason I am jumping on this particular deal is because I could be getting the house at the appraised value minus 6% (because we aren't paying realtor commissions if he sells to me). Thus I would be walking into it with 6% equity ($12k-15k depending on final sale price)  not including my min down payment of somewhere around 5%.

All other things being equal, is 6% equity without even putting down a downpayment considered a decent deal? Or would it be a good to great deal?

I've read all about the BRRR strategy and that would be the ideal way to go. But I'm trying to see if anyone has bought a multi-fam investment property pretty close to market value instead of with some sort of substantial equity due to rehab.

I'm going to run the comps in the area and see how much of a gap there is to see where I could increase value of the house which would give me some sort of equity. I.E. if its valued at $250k as is, if I update the kitchen and add a closet to change it from a 2 bedroom to a 3 bedroom then it could bring the value of the house to about $265k. And because I would be buying it at $235k, I would have about 12-13% equity. Does that sound right?

I guess what I really trying to do is justify buying an investment property close to market rate vs doing the BRRR strategy because those multi families in my area are super competitive and I wouldn't be able to get them since I wouldn't be paying in all cash.

Thoughts? 

@Jefferson Gan Thank you for your feedback!

Good Evening fellow Bigger Pocket Community!!

First I will give a little about myself...

I recently finished college and have a job at a well known tech company as a cost accountant. Real estate investing peaked my interest when I heard how lucrative it could be (like many people on here)...if everything goes to plan. I have an uncle who has been flipping houses for a few years (who is my mentor) and a cousin who works with him and partners on deals occasionally. 

I reached out to my cousin because I have built up enough capital to buy a house and wanted to learn more about the process - start to finish - of how buying a house works. I quickly engulfed myself in all the different aspects of real estate investing and which I would feel most comfortable.  

I love the bigger pockets podcasts, specially how they take the time to explain little things that some new listeners may not have heard before, and have read the Ultimate Beginners Guide to Real Estate Investing! The other two real estate books I've read were by J. Scott - Guide to Flipping Houses and Estimating Rehab costs. 

Fast forward a little bit and here I am present day lurking on the MLS for my first deal. My goal this year is actually to make my first deal. I don't want to have analysis paralysis so if I don't make my first deal by the end of the year I feel like I will lose interest.

Now to the point where I need help on...I was speaking with a friends' dad and he mentioned that he owns a multifamily (2 unit) that he is trying to sell. His mother had passed and he and his 3 siblings own the house. He says that he would sell to me for $235k without going through a real estate agent because if he did then he would list it for the assessed value of $250k. 

I have a couple questions on this...

1. If he isn't selling the house through a real estate agent, would he have to pay the realtor commission to my buyer agent (cousin)?

2. I tried to do the 4 square analysis  (shown below) of a rental property and wanted to make sure the numbers I got seemed accurate. 

Please let me know what you think and thank you for having me aboard!

Steven

I love the island! Good luck