All Forum Posts by: Tommy Burch

Hello and thank you. Rookie here. I am in Newton MA and not in a rush.

Looking to slowly (cash buyer) diversify into real estate. I live in MA and it is a high cost of living area (Newton).

I prefer the following: 1. buying near my home (I was a long distance landlord and had a bad experience) 2. I prefer to pay cash. I know I could take more risk with leverage and improve my returns but I am a small business owner and I have a lot invested in the stock market so I think I have enough risk. 

My questions:

1. For condos: what is the max HOA you will consider? How do you figure the HOA into your investigation

2. How do you personally value properties? For example. I am looking online now at a property that is for sale in my area. 

With the simple 1% rule if I paid 450k cash for this property it would need to rent for about 4500/month. Other than asking for similar properties in the area and for how much they are currently renting what else do you look for?

Here is the link:

https://www.redfin.com/MA/Ches...

3. I am in no rush. I know no one has a crystal ball, but as a cash buyer as interest rates rise do you expect the market to cool off a little? 

Thanks for the help.

Thanks!!!

Hello and thanks for the help!

First post here.

Summary: My brother lives in another state and he just had an offer accepted. This will be his families primary residence. It is waterfront. My brother and I are close. The house he bought has two lots (on either side of him) that will be listed soon. Both waterfront. I have over 2M in stock market and zero debt (no mortgage, income is variable but around 80-200k per year). I am considering buying one of the lots adjacent to his new home and eventually building a vacation home here. I could rent out this house when not there but mostly this would be a consumption item. I love to fish and It would be really cool to be able to visit my brother and stay in a house right next door. BBQ while looking at the water, fish from our backyard etc. 

Questions:

1. How do you determine the correct price for land?

2. what questions would ask?

Thanks!