All Forum Posts by: Bonnie Murphy

Hi Everyone,

I’m Bonnie and I’m from the Boston area. I am just getting starting in my own real estate investing, but I have been in the commercial lending field for several years. I’m hoping to make connections on here with other likeminded people, at any stage of their journey. 

Anyone in the Boston/Rhode Island area- I’d love to connect to start building a local network! I currently work in commercial financing in Needham, Ma.

Look forward to talking with all of you!

Bonnie

Hi Geordy,

Thanks for your feedback!

Yes, I would own 3 out of 5. Yes, these owners would sell one day. The resi unit is owner occupied, so that guy wouldn’t be losing any current income stream if I offered to buy him out. The commercial unit is occupied by a hair salon and it needs work, but it’s on a main road in the suburbs and seems to get plenty of business, so I like that it’s already commercially zoned and operating.

I work in commercial loan servicing, so I’d get a reduction on the closing costs. And yes, the three bedroom unit would be very feasible for me to move into with my son, at least for a year or two to get the reduced rate on the loan. 

There’s also the possibility of doing a direct loan from the current owner, but I’ve never really considered this until now. He owns about 40-something properties in the area and would like to sell these off because he wants to focus on managing his other, larger buildings. For me, I’m already living here and if the tenants need the driveway plowed, or the landscaping needs work, etc. I don’t mind making the calls to get the $300/mo. I’d be operating under the assumption of “property-manager-living-in-the-building” to the tenants, rather than the “owner” which I thought was a great idea when I heard it on the BP podcast with @Ashley Hamilton. 

Any other advice is appreciated. Thank you again.

Bonnie

I own and occupy a condo in a 4-unit residential building, that has a commercial unit attached for a total of 5 units. I got this property for a steal as a foreclosure through a first time home buyer program. I have had the property for 5 years, but now I am financially in a position to afford to buy another unit, or two if I can.

The current owner of said two units is the president of the condo association, and would pass on the property management duties to me, at a rate of $300/mo with the purchase of the units. I would reinvest this revenue back into my rental business.

The cash would flow at about $500/unit each month after expenses. I would be stupid not to take this deal, right? $325k for both units combined, in an area about 20 min south of Boston. I have about $50k in equity on my unit to borrow for the down payment (using HELOC up to 80% LTV).

What are your thoughts? Thanks!

Bonnie