All Forum Posts by: Steve Bracero

@Gabriel Verzino

It is not unrealistic- most people fail in real estate because they fall into analysis paralysis and never get started... You will never know everything before you "jump in" and purchase your first property. 

Neighborhood- Know your target renters and your market. Make sure it is safe and if you are looking for families to rent to make sure the school district is good- Your goal is to minimize turnover and keep long term tenants. Trulia has a quick view on crime reports which you can glance at. 

You can also not bet surely on appreciation where the home increases value. That will be a benefit but i value cash flow over appreciation. It is just an added bonus- The property needs to cash flow when you purchase. I am for 100+ a unit but you could also look for more depending on your needs. I aim for a 12% COC return as well...

Hi @Gabriel Verzino

I am also looking to purchase a multifamily in MA. 

You do not have to put a 20% down payment, fha is also an option which is 3.5% down- 

I wouldn't worry about finding a deal the fastest, first you have to analyze many deals which can be done daily. The analysis does not have to be in depth and after time can be done quickly.. 

Connect with an agent to give you listings on multifamily in your target price range as well as the target areas. 

If you are pre approved after you run the numbers, and or view a specific property, you can speak with your agent and begin to make offers.. 

The process of purchasing a property should not be rushed.. unless you want to buy a bad deal. I read that if you analyze 100 deals a month (2-3) a day offer on 10 you may receive 1 agreement. This would be 1% of properties on the MLS are great deals..

Feel free to reach out if you'd like to connect- 

Hi @Account Closed

FHA is for an owner occupant which is 3.5% down, there are many creative ways to get a loan without a conventional 20% payment...

I am working on the same, which is purchase a multi family as an owner occupant for one year then invest 20% into a second multi in year 2.. 

Living in the first property make sure to run the numbers with you leaving the property- for example if it is a duplex, run the numbers with 2 units and it should cash flow with the 2 units..

To understand your market, analyze deals daily and understand your target renters for your market.. 

Hi @Ryan Drowne

I have a very similar strategy- I plan on purchasing my first investment as a house hack with a fha loan. 

To speed up the process you want to begin analyze deals daily so you can spot a good deal quickly. My goal is to analyze 3 a day or 150 a month. The daily repetition is key since with time you will get to know your target market as well as target renters. Knowing your demographic is key since you make money when you purchase.. not on appreciation- 

feel free to reach out!  

Hi @Matt D'Arco

I am also looking to house hack into a multi family for my first purchase.. BP has tons of good resources so you came to the right place! I am also in MA and currently looking at deals in central ma including Worcester, MA. 

Welcome

this meets the 1% rule.. but this is too little info to consider it a deal- 

A few things to consider...

Annual Prop Taxes- 2000-4200

ARV- Varies (if move in ready)

Closing Cost 3000-4000

Repair Cost- 5000-1500 (depends on condition)

Loan Type- 

Monthly Rent- Without living there/ living there (Goal 100+ CF per unit)

Roof- installed when?

Built?

Vacancy in neighborhood?

Electrical, Plumbing, Heating, condition

Expenses

Mortgage- depending on listing price 

Insurance- 

Landscape 

Property Taxes- 

Vacancies- 8.3% (lower depends on area)

Repairs- 9% ( Lower if new house)

Cap Ex 10% or (183 if new house)

Pm- 10% (when mange)

Garbage- 

Water/sewer - 

Future Return

Income increases- 1-2%

Property increases- 1-2 %

Expense Increase 1-2%

Return

Goal: 12% COC Return

take a look more at the number... this will give you a better guideline 

Hi @Kendra Shaver From Central Ma, Worcester County, if you'd like to connect, feel free to reach out! 

This thread is very motivating.. it is interesting to see when everyone decided to hire a PM as well as their progress.. I feel the first purchase is the most difficult and I am hoping to close on my first deal in the next 60 days.. 

Hi @Thomas Ebenhoch

I am also looking to owner occupy first first home- 

Your best chance of cash flow is a fourplex, followed by a tri plex and lastly a duplex.. more units = higher chance of cash flow

When you analyze a duplex or a multi, make sure you analyze it with you living in the property as well as you not living in the property.. The property should cash flow once you move out- 

Hi @James Guerriero

Welcome to BP! I am also from masschusetts- this site is an excellent place to network and learn.