New Investor From Massachusetts.

New Investor From Massachusetts.

Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes

Hello Everyone,

New blood here by way of Foxboro, Massachusetts (Go Pats). I first grew interest in real estate back in college (PSU, New Hampshire class of 10’ ). I remember handing my landlord $2,600 cash per semester (and watching my 2 roommates do the same) for a bedroom in an old creaky house which had probably been paid off for at least 20 years.

I have now been out of school and in the rat race for a few years now and religiously saving my funds to invest in real estate. My goal is to acquire (through buy and hold) enough units and cash flow to equal my current income. Not necessarily to quit my job but to have the peace of mind and financial freedom of knowing I could.

My real estate experience lies in the three properties I have made offers on. I have been ousted twice by cash buyers and am currently still in the running on a current offer for a 4 family down here in Southeast Massachusetts. Interesting process so far I may have to start a new thread on this houses situation.

I have started my search for cash flowing buy and holds here in my backyard but would travel anywhere for a deal.

The forums, literature, and podcasts have been a great form of information but now I feel it time to take advantage of the other aspect of biggerpockets which is the interaction with likeminded investors. 

2Reply
82 views

Most Popular Reply

Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes
12y

Hey James.  Welcome to BiggerPockets!  I'm a bit far north of you... (up in the Nashua area of New Hampshire) but nonetheless, nice to meet you!  

See this reply in the discussion

28 Replies

Jump to latestLatest
  • North Dartmouth, MA · Member since 2014 · 172 posts · 53 votes
    12y

    Hey @Jim Sestito I am from the Dartmouth, MA area... BP is a great source of information and resources. My partner and I have just jumped into REI and have been meeting with local investors and will be attending our first REI meetup next week that @Mike LaCava hosts.  (You can see it on his website on his signature)

    What are the numbers surrounding the 4-family and what location in particular? I also have the same long term (personal) strategy with buy and hold but plan on acquiring another condo up north in the Malden area in the next few months since the spread up there seems to be better and I've had good success with my first condo.  (Low maintenance, small space, high rent, small possibilities of issues)  I continue to scour around the area but nothing really has been jumping out at me... probably because I haven't dove into the marketing piece yet to find these deals.

    Best of luck to you.

  • Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes
    12y

    Hey James.  Welcome to BiggerPockets!  I'm a bit far north of you... (up in the Nashua area of New Hampshire) but nonetheless, nice to meet you!  

  • Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    12y

    @Kyle Cabral Thanks for the welcome.  Quick #'s on the property I am after now; Three 1 bed units and one two bed unit.  3100 total rent (conservative estimate as only one unit is currently rented). Estimated mortgage 1450; this gives me a cash flow of $100 per the 50% rule.  It also gets a 1.4% rent/paid price which is actually good for my search area (Mansfield, North Attleboro, Attleboro). I also currently need a place to live and consider this to be a great way to 'house-hack' as well as build equity.

    - Are you investing anywhere other than the North Shore?

    @Matt Lefebvre Hey Matt,  NH looks like it has some solid areas to invest in.  Also it seems a little more landlord friendly than down here in the commonwealth.

    - I saw in your bio your only 17 -wow! -  These sure weren't the type of websites I was on at that age, good for you keep that motivation.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Jim Sestito

    Welcome. Fill in the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers. There are clubs in Waltham, Rockland, Taunton and Plymouth.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good Luck

    Paul

  • Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    12y

    @Paul Timmins Thank you for the welcome.  Also thank you for the content recommendations.

    - Always nice to hear from Massachusetts investors especially ones who hang with members of the Shark Tank.

  • Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
    12y

    Hi James, welcome to BP.

    This is a great place to learn. Make sure to listen to all the BP podcasts, read the articles on the main blog and be active in these forums to learn a ton very quickly about any topic in real estate you want to know more about.

    This is also a great place to meet people that can be assets to your business. Lots of great connections all over but we also have a very strong and active contingent here in MA on here so make sure to find them (Set up some keyword alerts to find out about local topics) and get connected.

    Besides doing that on here make sure to get out to some of the many local investor events we have.  Besides the one in Plymouth mentioned the other ones close to you would be the EasterMassREIA with meetings in Taunton and Rockland.  The Black Diamond event in Waltham (2nd location in Worcester) is worth getting out to and isn't that bad from there.  Lots of other stuff North of the city as well.

    On the place you are looking at is the $3,100 rent with or without renting the unit you want to live in?  If you are living for free and have a small cash flow that is pretty awesome.  If that cash flow is assuming you rent all of them take a closer look if the savings in living expenses is worth it.  Also if you are looking at only $100 cash flow total fully rented that is pretty thin.  Can be worth it depending on your goals and financial situation but just be aware that $100/month total on a 4 family could go away very fast with any small miscalculation.  Not at all trying to be a wet blanket but just want you to look at all the angles to be totally comfortable with whatever you end up doing.

  • Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes
    12y

    @Jim Sestito I think just about everywhere is more landlord-friendly than Massachusetts ;)

    And in regards to reading BiggerPockets at 17... well... its a tad bit more interesting than Facebook posts about what people had for lunch haha :)

  • Involved In Real Estate · Dorchester, MA · Member since 2014 · 12 posts · 3 votes
    12y
    Hey James Sestito welcome to BP! I'm also a relative newbie to BP/real estate investing and live right down the street Wrentham! I have to say that my favorite part about the BP forums so far is the specific answers advice and information you get from others like Shaun.
  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    12y

    Welcome to BP community @Jim Sestito  It is a great place to meet new friends and learn about various aspects of real estate and more.

    Wishing you the best! 

  • Real Estate Investor · boston, NH · Member since 2014 · 401 posts · 32 votes
    12y

    im goin on my final semester at psu

    they had smashmouth do a concert for spring fling last year hahaha

  • Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    12y

    @Shaun Reilly Thank you for the welcome and advise.

    That $3,100 is total rent without me there.  The rents are estimates and very conservative but either way I agree it is very tight.  Many of the major cap ex items (roof, windows, heating system) have been updated within the past five years.  Also on this particular deal I have a partner who is a licensed contractor- therefore we will have a heavy discount on any repairs/ maintenance.  

    I am trying to be careful not to talk myself into a deal.   I have been searching for properties and making a few offers on the ones that work for the past 8 months and have come up empty handed so far.  I know there are cash flowing properties here in MA out there somewhere....

  • Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    12y

    @Jared Cacciapaglia Hello there neighbor... have you done any deals yet in MA?  PM if you'd like would like to hear about it.

    @Dmitriy Fomichenko Thank you for the welcome.

    @Account Closed ahh spring fling memories... We had Talib Kwali, Gym Class Heroes, Drake, and someone else.... 

  • Mike HurneyPro Member
    Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
    12y

    @Jim Sestito  Welcome.

    So you've already done that 4 unit in Southeast Massachusetts and you're looking at another?

    @Kyle Cabral You anywhere near Lake Noquochoke? I've got a place there.

  • Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    12y

    @Mike Hurney It is not under contract yet.  And if and when it is - it will be my first rental property....  

    Marblehead and Dartmouth - sounds like you enjoy living near the coast.

  • North Dartmouth, MA · Member since 2014 · 172 posts · 53 votes
    12y

    @Jim Sestito I'm still trying to define my focus but my goal is to increase my investments in the southeast section of mass brancying between plymouth/bristol county. Although, not shying away from traveling a bit more north if the investment makes sense.

    @Mike Hurney I'd say im 7 minutes away max from Lake Noquochoke - Just a quick drive down route 6... I currently live right near Bishop Stang High School

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    Welcome James! I'm looking forward to financial freedom as well. Have always done rental properties.

    How are the numbers on the properties you were ousted on? I haven't known MA much yet to be heavy on the cash flow.

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    12y

    Hey @Jim Sestito welcome to the site!

  • Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    12y

    @Brandon Turner with a verified check mark, impressive... thanks for the welcome - from what I have seen you do an awesome job on here.

    @Ali Boone Hello Ali... the first property I offered on was a duplex with an asking price of 109,000.  Potential rent was 2,100 which would have made this the first 2%er I have seen yet in Massachusetts that wasn't a complete rehab.  I offered 129,000 as I knew their would be multiple bidders (I even sent a nice letter and a small edible arrangements package) -- got the idea from @Brandon Turner from a podcast. --

    The house went for 120,000ish to a cash buyer.  It was really discouraging at the time and I didn't understand why the sellers would leave 9K on the table for cash, I know a little better now.

    - As mentioned earlier in the thread the current 4 plex I am after doesn't have the best cash flow on paper - but the house in turnkey and my partner on the potential deal is a licensed contractor which would bring great saving to all cap ex issues through this properties lifetime.  Also I am running the numbers with just about 100% financing (3.5% down).

    - I noticed in your bio you invest in Indy and Philly.  If I cannot come up with some deals in MA those were two markets I had target as potential interest places to invest.  Also thank you for reaching out and I would really enjoy to hear your thoughts on the situations mentioned above.

  • Memphis, TN · Member since 2013 · 969 posts · 524 votes
    12y

    @Jim Sestito 

    Welcome to BP!!! If you can get a hold of some Patriot tickets HIT ME UP!!!LOL!!!

    Good Luck investing!!

  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    12y

    Hey @Jim Sestito welcome to the site! Hope you have a great time here. Let me know if you have any questions related to the back end.

    BiggerPockets
  • Investor · Cambridge, MA · Member since 2013 · 264 posts · 104 votes
    12y

    @Derrick Craig Lets find a deal in the Music City and I'll get you front row on the 50 yard line! 

    @Dave Visaya

    @Dave Visaya Thanks for the welcome.  Your bio looks very interesting.  Awesome you can work from afar like that.  This may be more of an IT question but do you know how to change your forum post time to Eastern Standard Time where I am located?

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    The reality is, cash offers will almost always beat out financed offers. Even with a $9k difference. Financing is so ridiculous these days, oftentimes the holding times on the property waiting on the loan to go through costs more than that difference to the owner. If I had a property, I would have taken the $120k cash over your $129k financed as well, unfortunately. If you have the funds to ever pay cash, you can always immediately refi after closing and it ends up being the same thing as if you bought with financing, but at least you got the property. I've only ever worked with unlisted properties though, a lot in order to save the bidding hassle. Bidding/offering on any property that good will always have a lot of competition and if you have to finance, it will only make things harder. 

    BUT! With that said, everything is a learning experience and it will help you hone in on a method that works and let you get creative. Welcome to REI :)

  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    12y

    Hey @Jim Sestito hmm, I've asked about this and I think the time is set automatically, let me know if this is a big hassle and I can check it with the site admins. Regards!

    BiggerPockets
  • Residential Real Estate Broker · Indianapolis, IN · Member since 2010 · 1k+ posts · 557 votes
    12y

    Welcome @Jim Sestito !

    - it's always good to see another investor utilizing this great site!

    Of course, you need to read The Ultimate Beginners Guide to REI here on BP

    If you haven’t already, please read/listen to these books ASAP!

    Rich Dad Poor Dad

    Rich Dads Cash Flow Quadrant

    Rich Dads Increase your financial IQ

    The Real Book of Real Estate

    The ABC’s of RE Investing

    The ABC’s of PM

    Rich Dad RE Tax Advantages

    The E-Myth

    The 4 Hour Work Week

    BiggerPocketsPodCast


  • Information Systems and Cyber Security Manager – US ARMY · Augusta, GA · Member since 2015 · 128 posts · 30 votes
    11y

    Sounds like the Pickens in mass are a little crazy or maybe you have not scoured the market as much as possible. Looking for a 4plex hack myself but in New Hampshire. Hopefully around the Nashua area as I work in Devens and commute everyday. I actually love the drive. Good luck with the continued search. If I see anything in my travels I will let you know as well. Sub'd.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.