All Forum Posts by: Aaron Araujo

Hey guys!

I finished the renovations on that property and now have it rented! Give my guy Allesandro a call with Blue Sky General Services in New Bedford. A quick google search will bring them up! 

Hi Aubrey, welcome to BP! I also live in New Bedford and own one investment property, however I bought mine last year. I'm also a licensed realtor focusing on multi-families in the city. I'm always looking to connect with other investors, especially in our area. Maybe we can get together sometime and share some ideas! 

Looking forward to connecting!

I have to agree with @Stephen Herbert. They have fairly strict guidelines for a HML compared to someone you might find locally.

New Bedford has great opportunity. I own a 3 family in the city and it’s a great property. Like any city, you just have to be selective with your neighborhoods. I’m happy to provide any insight I can! 

@Craig Curelop Thanks for your response! 

My monthly savings rate when I bought the property was actually right around $1,500+. This was what put me in the position to make that first purchase. Since then it has dropped, mainly due to the additional operating and renovation expenses. My situation is fairly ideal however. I am a single, young guy with no kids/pets and minimal liabilities. I've been able to live at home with my parents throughout this process which has played a huge role in putting this first deal together. 

My dilemma is starting all over again to gain the capital to complete the final R, "Repeat". I may not be able to take advantage of another first time home buyer, low down payment loan. Which would force me to need a much larger chunk of capital upfront.  I do want to move on to a house hack for my next deal though. 

I'm likely going to list it and see what happens. If I get the offer I'm looking for then I'll. If not, then I have a solid cashflowing asset to hold on to. Not a bad deal.

Thanks again!

@Jennifer Jacobs Thanks for the input! I do not have the capital to move on to the next deal currently, as I have been solely focused on this one. This leans me towards selling. As far as your grandmother's house, I would open up a HELOC to use towards your next deal! Most banks will give you a line of credit (with great introductory rates) for 75-80% of LTV minus your debt service. So if you have a decent amount of equity then this is a great tool to use.

Also, I know they say to never let emotion drive a deal, and this is true almost always, but there has to be a line drawn somewhere. And you're free to draw that line wherever you want! So if that house is important to you and you don't want to sell it, then don't. And just find a alternative way to tap into that equity. 

Thanks again for your insight!

I already posted this once, but I wanted to refresh the thread to get some more feedback. Thanks again!

Hey BP!

I've been contemplating this idea in my head for a few weeks now so I figured I'd take it to you guys.

I bought my first property this past August; a 3-unit in Massachusetts. I've been collecting rent on 2 units while renovating the third unit up until this point and I'm approaching the finish line. I bought it with the intention to hold long term, but I'm now contemplating selling.

Let me give a bit of context first. My goal is to own cash flowing real estate, enough to eventually reach financial independence and beyond (original, I know). I don't particularly care how I arrive there in regards to my distribution of units. Whether I have a bunch of 3-unit buildings or one 24 unit building is not a limiting concern. I just want to get there as efficiently as I can.

So, here I am with this 3-unit that I just bought. To better help with the discussion, here are my options in a nutshell:

A) Keep It

If I decide to keep it, I will rent out all three units an implement property management. After accounting for expenses and reserves I will net cash flow between $300-$400. Not a screaming deal, but I am into the property fairly light so my cash on cash is decent.

B) Sell it

Based on comps, if I were to sell I the near future I could make an initial gain of $60-75K. Not bad for a first flip if I go that route. Any profit from a sale would then be parlayed into another investment, ideally a larger building with greater cash flow potential. (via 1031 exchange)

An investor friend of mine opened me up to the idea that I could either hold it for 3-4K a year, or sell it and make 15 years of cash flow in one fell sweep. Obviously this doesn't consider equity gain or tax benefits, but it is an interesting perspective that I hadn't considered prior. It's like time travel!

C) Refinance

I could refinance and lower my mortgage payment slightly, getting rid of PMI. However, since my LTV is around 80%, I wouldn't be able to pull any cash out to use towards another deal. I would simply gain about a 100 bucks of monthly cash flow.

So, I come to you, asking for insight and guidance. What would you guys do? Should I take the profit and grow my portfolio by finding something bigger and better? Or should I stick it out and wait until I have the funds to buy another one?

Thanks for any feedback!

Aaron

Hey BP!

I've been contemplating this idea in my head for a few weeks now so I figured I'd take it to you guys. 

I bought my first property this past August; a 3-unit in Massachusetts. I've been collecting rent on 2 units while renovating the third unit up until this point and I'm approaching the finish line. I bought it with the intention to hold long term, but I'm now contemplating selling. 

Let me give a bit of context first. My goal is to own cash flowing real estate, enough to eventually reach financial independence and beyond (original, I know). I don't particularly care how I arrive there in regards to my distribution of units. Whether I have a bunch of 3-unit buildings or one 24 unit building is not a limiting concern. I just want to get there as efficiently as I can.

So, here I am with this 3-unit that I just bought. To better help with the discussion, here are my options in a nutshell:

A) Keep It 

If I decide to keep it, I will rent out all three units an implement property management. After accounting for expenses and reserves I will net cash flow between $300-$400. Not a screaming deal, but I am into the property fairly light so my cash on cash is decent. 

B) Sell it

Based on comps, if I were to sell I the near future I could make an initial gain of $60-75K. Not bad for a first flip if I go that route. Any profit from a sale would then be parlayed into another investment, ideally a larger building with greater cash flow potential. (via 1031 exchange)

An investor friend of mine opened me up to the idea that I could either hold it for 3-4K a year, or sell it and make 15 years of cash flow in one fell sweep. Obviously this doesn't consider equity gain or tax benefits, but it is an interesting perspective that I hadn't considered prior. It's like time travel!

C) Refinance 

I could refinance and lower my mortgage payment slightly, getting rid of PMI. However, since my LTV is around 80%, I wouldn't be able to pull any cash out to use towards another deal. I would simply gain about a 100 bucks of monthly cash flow.

So, I come to you, asking for insight and guidance. What would you guys do? Should I take the profit and grow my portfolio by finding something bigger and better? Or should I stick it out and wait until I have the funds to buy another one? 

Thanks for any feedback!

Aaron