New Bedford, MA House Hack with 203k?

[Alex Longinidis]

TLDR;  Looking for someone who knows the area and 203k process to help me get clear on my rent estimates in New Bedford, and to help advise me as to whether or not I have a good deal.

This is probably going to turn into more of a brain dump than anything but I'm looking for some help getting clarity on my path.

First things first, I'm currently pre-approved for a 203k loan up to $450K in the South Coast of MA, currently looking for what will be a house hack in New Bedford & Wareham since they seem to be the only areas in my search box that consistently have multifamilys.  I know this may not be a great time to buy, but I also know that opportunities are everywhere so I've been keeping a close eye on the market and waiting patiently.  Things seem to be slowing down based on my assessment of what I'm seeing on sites like Redfin, and I feel like I'm getting closer to finding a deal.  

I've found a property that I see a lot of upside potential in, I'm not certain on the accuracy of my numbers but I know deep down that this property could be a great deal if acquired for the right price. I just need some help getting my numbers dialed in to make a final assessment. I'm having a little trouble pinpointing rent estimates (have been using the HUD Fair Market Rent tool) and rehab costs. Since I don't have cash to fund the whole deal I'm planning to do a 203k to get the property liveable, then take it from there, which I've heard can be a long process with a lot of red tape.

I'd hate to let the deal slip, so I'm just looking for someone with experience to give me some guidance and input.  I can absolutely share my calculations if needed.

[Matthew Porcaro]

Quote from @Alex Longinidis:

TLDR;  Looking for someone who knows the area and 203k process to help me get clear on my rent estimates in New Bedford, and to help advise me as to whether or not I have a good deal.

This is probably going to turn into more of a brain dump than anything but I'm looking for some help getting clarity on my path.

First things first, I'm currently pre-approved for a 203k loan up to $450K in the South Coast of MA, currently looking for what will be a house hack in New Bedford & Wareham since they seem to be the only areas in my search box that consistently have multifamilys.  I know this may not be a great time to buy, but I also know that opportunities are everywhere so I've been keeping a close eye on the market and waiting patiently.  Things seem to be slowing down based on my assessment of what I'm seeing on sites like Redfin, and I feel like I'm getting closer to finding a deal.  

I've found a property that I see a lot of upside potential in, I'm not certain on the accuracy of my numbers but I know deep down that this property could be a great deal if acquired for the right price. I just need some help getting my numbers dialed in to make a final assessment. I'm having a little trouble pinpointing rent estimates (have been using the HUD Fair Market Rent tool) and rehab costs. Since I don't have cash to fund the whole deal I'm planning to do a 203k to get the property liveable, then take it from there, which I've heard can be a long process with a lot of red tape.

I'd hate to let the deal slip, so I'm just looking for someone with experience to give me some guidance and input.  I can absolutely share my calculations if needed.

I've helped several people in MA and RI with 203k's, specifically for house hacking. Happy to take a look at your calculations and give you some pointers. 

Ultimately, for rent estimating I like using a few different tools:

1. Rentometer I've found to be pretty accurate across the USA. I usually use their median estimates they give. 

2. Facebook Marketplace or Craigslist. Just look for listings of properties in similar condition to what you'd expect to finish your units at. Make sure you're comparing to units that are part of a residential building, not a commercial or luxury apartment building with amenities, etc. 

The 203k Isn't a lot of "red tape". This is something that lenders and agents that have no idea what they're doing love to spread as an excuse to why they don't sit down and learn it. 

I've helped several hundred people do 203k's and HomeStyle loans across the country. Once you know how it works, its by far one of the most effective financing tools available to everyday people looking to buy real estate.