All Forum Posts by: Alex Longinidis

Bumping this thread in search for a GC in New Bedford that can help with rehab estimates.

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.

Kicking the tires here, looking to find some New Bedford locals to talk shop with.

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.

As the title says, I am looking to buy a house hack in the New Bedford area in the near future.  I've been running into a sticking point when looking at properties, which is the fact that I don't know what the good/safe areas to buy in are, or how to find that info.  Figured here would be the best place to start.

For context I just want it to be somewhere my girlfriend would feel safe.

Is anyone able to help me get pointed in the right direction?

Bumping this thread as I'm looking for a Homestyle lender in MA as I've heard you can do DIY for non "safety-critical" tasks that don't require licensed professionals (such as junk removal and painting I'm assuming?) and this sounds like my best bet for building sweat equity at my price point.  

Any info on lenders with this product operating in the Wareham/Bourne area would be much appreciated!

Wanted to bump this thread to see if there’s any more recent experiences.  Just listened to BP Money #226 with Phil Cook and wanted to get some extra income from this as it seems like an awesome way to.  

@Sam McCormack

Thank you!  Just happy to be in the black on the first one, and happy to have an investment that is paying down the loan & building equity on it's own with the PM handling the day to day.   

 Hey Jules!

Yeah after factoring in 8% for CapEx, Maintenance, & Vacancy (which is probably pretty conservative since most everything is in good condition or recently updated), the ROI is pretty low. I'm just happy to have something that is cash flow positive for a first deal. With those at 5% each ($140/mo, maybe a bit more realistic? We'll see...) the ROI is up to almost 12%.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $275,000
Cash invested: $57,000

Link to the post-completion post here:

https://www.biggerpockets.com/forums/12/topics/1243638-first-rental-property-success

What made you interested in investing in this type of deal?

Thought I was moving out to Ohio, ended up just turning it into a rental property.

How did you find this deal and how did you negotiate it?

My parents actually considered buying it first, they backed out, I ran the numbers and found that it seemed to work for several different exit options, and put in an offer. Negotiated through an agent using items found in the home inspection as well as local comps.

How did you finance this deal?

Loan from family.

How did you add value to the deal?

Rehabbed all units.

What was the outcome?

All units rented for a +$200/mo. cashflow. Not a home run, but we're in the black.

Lessons learned? Challenges?

Lessons learned summarized in a post here: https://www.biggerpockets.com/forums/12/topics/1243638-first-rental-property-success

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Agent and PM.