All Forum Posts by: Todd Wheatley

I would encourage you to spend the next few months speaking with contractors and hard money lenders letting them know what your plans and intentions are. Many contractors are busy / in demand right now and will be difficult to get a hold of. Spending the time now during your preparation phase could make or break your first flip deal.

The number one recommendation I make to new flippers is make sure to treat your contractors and lenders as PARTNERS, because they are incredibly important to the success of your deal(s)! Good luck!

Hi @Scott Fournier!

You are off to such a GREAT start thinking about this stuff at the age of 22, kudos to you! Believe it or not you are in a fantastic market to begin your investing journey. The Greater Lowell area as well as Southern NH like Pelham offer some amazing house hacking opportunities, whether that be a single family with many bedrooms or a multi-family property.

You will definitely want to get in touch with a few lenders given your income situation but where there's a will there's a way. I can introduce you to a few lenders in your local area so you can at least see how your situation looks today.

Talk soon!

-Todd

Hi Peter,

Congrats on starting your REI journey! You will find a wealth of knowledge here and by networking with others in your local area. You've named some good spots within MA to look for your house hack but they cover a wide geographic area. One of my strongest suggestions to newer investors is to think about where they actually want to live first and foremost. What works with your job situation, do you have friends close by, does the community you will be buying in have the things you like (e.g. downtown, restaurants, hiking, etc, etc). Once you narrow down the places you really really want to live then finding a house hack gets MUCH easier IMHO. If the community you choose has more single family than multi family then you can find a house with tons of bedrooms and perhaps make some modifications to make it conducive for having several roomates (this can actually generate a TON of cash flow), you can look for single family homes with in-laws allowing for you to live in the smaller in-law and rent the main house for maximum income (we've helped many clients achieve this!) or you find that perfect multi-family rental property.

Long story short, I would encourage you to narrow down your geography based on your personal lifestyle and then find the house hack. This is a 180 from how many other people think about it but I think sets you up for maximum quality of life and long term success with real estate!

Happy investing!

Hey @Jhon Quintero! My go-to FHA 203K lender is Joe Galvin at Movement Mortgage. You can look him up online or DM me and I'll make an intro. The guy absolutely crushes FHA-related loans. Good luck!

Hi @Marc V Palmeri,

This may not be what you're looking for but I've recently started using the Plowz & Mowz mobile app for snow removal (plowing & shoveling) at some of my investment properties. It's been really great so far!

Good luck on your search, I know it's tough to find reliable snow removal service right now.

-Todd

Hi @Ben Mitchell, I hope you are doing well and enjoying the new home. We may have discussed some of these previously but I'll list my ideas of your type of situation.

• Review the city/town's zoning by-laws to understand the allowable use for accessory dwelling unit (ADU). Typically some percentage of a property owner's primary residence can be rented as an accessory dwelling but the specifics vary from one municipality to another.
• Review the city/town's zoning by-laws related to short term rentals (STR). This is likely to be a disallowed use in most residential zones.
• Identify prospectives tenants that see value in 2 separate living spaces on a single lease at a premium price. Some examples include family's with adult children and/or an aging parent that needs to be close to family/care.

Lastly, I wouldn't necessarily agree that if something was possible a prior owner would have done it already. In many cases long-term owners simply don't see the need nor care to unlock or modify additional use of a property, especially if they were already using it for their specified needs. If it ain't broke don't fix it I suppose.

Good luck with your project and reach out anytime!

Hi @Anne ODonnell!

Congrats on getting started with your interest in real estate - it sounds like you have prepared yourself really well!

In recent years my wife and I went from casual/accidental real estate investors (e.g. renting our vacation home on Airbnb, live-in flips, etc) to focused and full-time real estate investors. I just so happen to know the client that Jon mentioned above, it was me!

I'd be more than happy to share my transition story if you want to jump on a call or video chat feel free to message me! Best of luck with whatever path your choose!

Happy Investing!

-Todd 

Hi @Katharina Bormann!

I'm sure others will chime in with their own recommendations as well. I personally use Rockland Trust for deposit banking and some real estate lending needs, they have been amazing to work with! They currently strike a good balance of small bank vibes while also having a good number of branches to serve your needs in multiple geographies. I would also recommend checking out First Republic as they have an extremely good reputation in the Boston area as well.

I'm sure you're already aware of this but you may find that having a relationship with multiple banks is the way to go since they will have different appetites for what they want to lend on. Good luck!

Per Newton zoning by laws you should be just fine in any residential zone in the city. See attached table of uses.

P = allowed by right.

Hi @Rachel Feng!

I know we've traded some messages but figured I would chime in here as well.

I wouldn't give up quite yet on house hacking a multi-family in a nice area just yet, we are getting clients good house hack properties all the time. Just last week we got a first time house hacker under contract on a large duplex with a 3rd in-law apartment. The property sits on the Waltham/Newton line, (it has access to Newton Public Schools!) and the client is using a low-downpayment FHA loan. The opportunity presented itself because the property had fallen out of contract twice due to a difficult tenant situation that my client was willing to assume. The point is, there are opportunities out there if you're looking in the right places!

Regarding the condo project, I would strongly suggest finding someone to partner with for your first swing at a project of that size. There is no "right" answer to whether you should hire a general contractor (GC) or manage the project yourself, albeit your local municipality may require a CSL/GC oversee the project given it's a multi-family dwelling.

Getting into non-owner occupied condo project of that size can easily overrun your construction timeline (especially if you don't have a pre-existing GC relationship) and as you point out those holding costs will add up quickly. Whatever you think your timeline will be I would suggest doubling it. (e.g. 12 months planned then run your numbers on 24 months).

I actually really like that property at 35 Trapelo and think there's MASSIVE opportunity for an owner-occupant. IMHO, the "safer" play on that property would be to work with a local credit union or bank to discuss owner-occupied duplex loan products. If you could use a loan like that to acquire a property that needs substantial work you could then manage the work over time without fear of holding costs or "profit". Let's say it took 24 months to finish the work, you would then refinance based on the newly appraised value and re-coup much of the cash you deployed on acquisition and renovations. You already know what I think that place is worth fixed up:)

Best of luck with whichever path you choose! Happy Investing!

-Todd