All Forum Posts by: Todd Wheatley

Anytime! I will DM you so we can connect.

-Todd

Hi @Brandon Roberts

Fellow Boston house hacker, real estate investor, and investor-agent here! I like the way you're thinking by going as big as possible for a residential play (4-family) and trying to combine renovations (BRRRR) into a house hack. It's this type of creative thinking that is getting good deals done in Boston right now. My wife and I are wrapping up a similar project in Waltham. It's a 4 family (w/ an ADU) that we purchased in April, moved into 1 of the units, renovated 2 of the others, put renters in place, and are in the process of refinancing right now.

This type of project certainly takes some strategic planning but the rewards can be significant. If you're planning to use a low-downpayment, owner-occupied loan you need to make sure the subject property has a vacant unit for you to occupy. Since you are planning to BRRRR that implies renovations which can mean vacant units for several months - you need to account for that lack of rental income in the short term.

Long story short - if you're committed to this type of project and are as prepared as possible when the right property comes up I think you could crush it!

I'm more than happy to jump on a phone call or meet up for coffee if you want to talk - zero pressure.

Happy Investing!

-Todd

Hi @Zachary Hadjah

Congrats on graduating and continuing your search for the right real estate investment. I think Framingham is a strong market for real estate investors for several reasons.

Depending on the location of the property within Framingham you have both public transportation into Boston via commuter rail as well as the state college - both are strong profiles of rental tenants. Now of course both the school and boston commuting is depressed right now due to COVID-19 so that would need to be factored in to your ability to attract renters in the short term. On the flip side it could create opportunity due to the fact that larger investors may not want to deal with attracting tenants with these headwinds in place for the short term.

With regard to your question about lease-options. In theory it could be an attractive way to get into a property with little or no money down but you would need to ensure your lease terms allow for subletting rooms if that was your goal. If you are eligible I think using a low-downpayment, owner-occupied loan (e.g. FHA) could be a better way to go but if you aren't able to get a loan like this then a creative approach such as the lease-option could indeed be a good way to go!

I'm happy to help anyway I can. I am often in Framingham and feel it can sometimes be an overlooked rental market as folks tend to focus more west in Worcester or east to the Boston suburbs.

Happy investing!

Hi @Thawanna Pessoa

Congrats on getting started and beginning your journey with real estate investing. You seem focused on your goal, price point, and location which is a great start! Finding the first one will likely be the most difficult as you get started but it gets easier from there. Spend time networking with local folks here on the forums, facebook groups, and let folks know what you're looking for. I would also encourage you to connect with some local investor-focused real estate agents as they are well connected and can be a source of leads too.

Best of luck on your search and if there's anything I can do to help please don't hesitate to reach out.

-Todd

One common challenge I often see when analyzing deals, especially in the BP rental property calculator, is how to easily account for the upfront and annual mortgage insurance (MIP) costs associated with low-downpayment, federally-backed loans such as FHA or VA. There are certainly ways to add these into the "closing costs", "points", and/or "fixed expenses" section but it's not immediately intuitive. I imagine a large percentage of those whom frequent BP are interested in using loans like FHA so it may be beneficial to adjust the calculator to make this more clear and easy to use. Thanks Mindy!

Hi @Mindy Jensen! I just emailed you the MA form (MAR 501). Best of luck with your collection!

-Todd

@Jonathan Bombaci Thanks for encouraging all of us on the Candor Team to do this goal setting activity and leading by example!

I am in the final stages of making my transition from W2 employment to becoming a full-time real estate investor and agent. Therefore, 2021 looks to be a transitional year for me!

My goals for 2021 are;

Business / Professional

Complete $7M in real estate transactions within the year. Stretch goal of $10M+.

Personal Investment

Complete another 2-4 unit house hack and add $1,000+ of monthly cashflow within the year.

Personal Goal

Write my first book, likely on some niche of REI.

Looking forward to see what other's have on their radar for 2021!

Congrats @Brian Ellis - that's got to be an awesome feeling, especially keeping the deal alive with the seller! Good luck with the next one!

Hi @Austin Negron

@Jonathan Bombaci and his Candor Realty team run a great event called "Pints and Properties New England". Due to COVID these events have shifted primarily to Zoom. You can find more information about these meet ups by searching here on BP or Facebook for the meet up name. I'll be happy to share more when we connect this afternoon.

Black Diamond is also another wonderful local group - however they have recently disbanded their meetups. They still manage a very active and high-quality FB group.

-Todd

@Steve Pizzarella congratulations on such a great start! At 23 with 40k saved up already for an investment you are going to crush it!

Some excellent advice in this thread already. My opinion is a 3 or 4 family FHA house hack without a doubt. Using some back of the envelope math (because who doesn't love some math)....

40k available to invest

10k set aside for emergency reserves

30k remaining towards downpayment / out of pocket closing costs

Purchase Price x 3.5% = $30,000

You could theoretically control an $857,000 property with 30k down! You should always discuss and get pre-approved with your lender though! If you need a referral to a local MA and NH FHA lender DM me and I'll be happy to connect you.

-Todd