All Forum Posts by: Michael Healy

Thanks Keith Weigand ! Already heard back from my bank that they would allow as long as building supported the debt. Benefits of going local I guess.

So I'm in contract on a 6-unit MF and am getting a commercial loan with 25% down from a local bank. Good cash flow (10%) and fully rented in a desirable area I seem to have fallen in love with another very similar property nearby, and I'm right on the edge of being able to afford both, but it would leave me with small reserves. The bank has said I could qualify using my 401k assets, so I could swing it. But I'd rather figure out a way to buy with less down. Seller is later in life and looking to get out of land lording. Do you think I could offer seller carry back for % of property not due on sale that would roughly double what i project he's earning in monthly NOI? Would the bank go for it? I think seller could be a candidate for wanting income stream vs lump sum. He bought at market peak, though, so I think it's less about capital gains. I figure this could result in my putting down about half of what I'd expect doing 100% commercial with 25% down and would leave me with liquid reserves for both properties. Also bank currently holds mortgages on both. Any thoughts or experience welcomed.

I should add that there was nothing grand about our 1904 house and I was a free lunch program at school and latch key kid, so when I made those remarks about my friends house in the "rich" part of town, I was genuinely puzzled why such a fancy new house would feel so insubstantial.

Wow! Really glad to see so many old home lovers out there. I grew up in a 1904 house and never wanted to go visit my friends who lived in the new "subdivision" ("what the heck is that, anyway?") on the other side of town, because, as I said to one friend, "your house feels like it's made out of paper mache and balsa wood." (I'm less mean these days, but I still set my search filters at 1945 and earlier.)

My taste came back to haunt me today, though, when a realtor said my 1941 art deco condo wouldn't sell for as much as I'd like because "the bathroom and kitchen aren't updated." I said to him, "now, see, I consider that a feature!" I guess it's lonely in the depression.

@Renee Tepper --it came out beautifully! I hope someday to be able to tackle such a project.

@Colleen F.--thanks, the lead is what concerns me the most, but i'll be reluctant to replace these beautiful old windows.  Fortunately the electric is mostly up to date except for a GFCI that may need to be put in here or there. Converting and submetering the heat is my biggest bucket list item, which should free up cash for other things.

@Paul Timmins--I'm planning to look into an energy audit to see what can be done to make the property more efficient. 

I know mixing passion with investing may dampen long term success, but fortunately the charm is well intact and hasn't been erased by oblivious renovation.

Thanks Mike Sattem , that's the case with this property, though the windows look fairly original double hung with period fixtures. The oil bill is about $9,600/year though which is my main expense target for improvements.

I would figure it in terms of years to pay back. Potentially lower gas prices plus submetering could be substantial savings

Thanks, @Tzvi Balsam, the home is actually in Massachusetts and is a fully rented six-unit in a very desirable town. Planning to buy and hold and though cash flow is healthy i think it can be further improved by converting to gas heat and submetering it, as oil seems to be the biggest operational expense aside from taxes.

I admit it: I love old houses, especially those built in the early 1900s. Yet I always hear savvy investor types talking about only investing in post 1990s houses or similar criteria. I know real estate investing is about, well, investing. But I wonder if anyone has been financially successful while pursuing older homes? Lead paint always seems to be a huge concern in these homes, as well as fuel efficiency. Perspectives from old home investors appreciated. Michael P.s this is relevant because I'm in contract on a multifamily built in early 1900s with lots of original detail, windows, etc. I know it's going to be a bear to restore and maintain but I can't help myself.

Thanks, Jonathan Lake it sounds like we have similar goals. I will talk to my lender today and see what he says. It's been far easier so far working on a commercial loan than any of the conventionals I've done. Could also be the local bank factor

Thanks Domingo Santana ! What are you getting started with?