All Forum Posts by: Brett Merrill

House hacking - investing in real estate with the express purpose of living in one of the units - is one of the best strategies for anyone who wants to get started and gain some real estate investing momentum. It can actually be beneficial for those who have a family or kids, as this provides extra motivation to look for your clear-concise-criteria multi-family property, such as a duplex, where the units are side-by-side instead of up-and-down. By having set criteria when investing, such as the layout of a multi-family property, you are in a better position to acquire a quality property that suits both your monetary and practical criteria.
When utilizing the house hacking strategy it is essential to hire the right lender. You don’t want to put yourself in a position where you’re at risk of mortgage fraud, especially when you have a family and kids. Living in the property for the one-year requirement is an option and one that is recommended, however there are sometimes things that allow for this to be null and void such as a major life change including work changes, another pregnancy etc. Please make sure to do you full due diligence on this. 

Hi @Craig Lang great to hear from you. I am an agent and investor in the Western Massachusetts and Central Massachusetts area. Over the years I have noticed that this market is often overlooked as part of good investing in Massachusetts. After years of experience in the area, there is excellent cash flow and great neighborhoods to invest in.
As you may know, the area is home to five colleges as well as many hospitals and growing industry. This market has been providing steady appreciation with the ability for cash flow on investment properties. If you were looking for higher appreciation with less cash flow, central Massachusetts is the perfect place. Especially the Worcester area and pertinent neighborhoods have supplied good deals.
In contrast, the Boston and its immediate surrounding area, although appreciating, finds it difficult to cash flow and appreciation has had a huge spike. The appreciation rate, however, is no longer at the same rate. That being said there are certainly some good deals that still pop up out there if you know where to look.
If you would like to learn more about the potential of investing in this area, I invite you to get in touch with me and discuss further.

Congratulations @Kyle Curtin. I have been seeing your name a lot on BP, which is usually a great sign of someone who is going to do big things throughout their real estate journey. Looks like you are off to a great start in year one. Keep up the drive and hard work.The success you received in year one will start to compound very quickly. 

Hi @Jennifer Battite,

First, congratulations on taking the first step towards reaching your real estate goals. You certainly have come to the right place. Biggerpockets has been such an invaluable resource throughout my real estate journey, and I'm sure it will be for you as well. I understand that you are interested in getting started with real estate investing and I wanted to reach out to offer my assistance. Although I don't have as much experience as some, I do have enough to be of help. I would be more than willing to connect with you to help you get started on your first deal. House hacking is how I got started as well, so I can provide some insight into the process. 

If you're interested, please let me know and we can arrange a time to discuss further.

Hi @Adam Francis the best way to get started in commercial real estate is to research the market, develop a plan, and identify your end goals. You should research what types of properties are in your area and what the market looks like. Have a good understanding of the basics like zoning laws and building codes in your area. Develop a plan of action that includes the type of property you want and the investment you are willing to make in the property. Set realistic goals that can include financial goals, timeline goals, and other elements you want to consider when investing. Lastly, network and find a mentor in the commercial real estate industry.

There are many books available on investing in commercial real estate. A few that are not mentioned as often are:

-Commercial Real Estate Investing For Dummies by Peter Conti

-The Millionaire Real Estate Investor by Gary Keller

-The Complete Guide to Real Estate Investing by Steve Berges

-The ABCs of Real Estate Investing by Ken McElroy

-The Real Estate Game: The Intelligent Guide to Decision Making and Investment by William Poorvu

Hi @Bob Paxson I have seen it work successfully many times with a good attorney in place and proper communication with the lender.

The due on sale clause of a mortgage allows the lender to call the mortgage due and payable in full when the property transfers ownership. If you are trying to assume a mortgage, you should be aware of the due on sale clause and the impact it can have on the process.

Some lenders may choose to allow an assumption of the mortgage without calling the loan due and payable if they are satisfied with the financial situation of the new borrower. Others may be unwilling to allow the assumption of the mortgage if they feel the new owner cannot afford to make the payments.

It is important to understand the requirements of the lender before attempting to assume a mortgage. If the lender has a due on sale clause in place, it may not be possible to assume the mortgage without calling it due and payable in full. You should discuss this with the lender to ensure that you understand the impact this clause can have on your ability to assume the mortgage.

Hi @Thomas O'Donnell. Don't get too discouraged, most have been in a similar situation to this or another completely different situation that is just as challenging. I think you are being smart by screening your tenants thoroughly. You certainly do not want to rush the wrong people into your unit to collect a little cash as this can turn into a much more expensive expense down the road. However, I do want to make sure that you are not over screening with too strict of criteria. Do you mind sharing with us how you are currently marketing the property and what your current criteria is? I have looked into Columbus and it seems to be a strong enough rental market so there is something that needs to be tweaked. Also, does the property have any other ability to produce rent such as a garage for storage or do you have an extra room in your unit that a friend or family could rent? Hope this helps. 

Hi @Bianca Rodrigues. Both @Patricia Steiner and @Frank Avallone II have given excellent advice and options. It also relies heavily on how you plan on purchasing the property. Most lenders require that you occupy the home within 60 days of closing. Obviously this does not allow for time for an annual lease to expire and is a little risky when planning on cash for keys after closing as they can always change their mind and refuse to leave. The best option is definitely the vacant possession if that's possible. Hopefully they are currently month to month and the seller is able to give them notice so that is vacant and ready for you to occupy upon closing. 

Thanks @Timothy Lewman I was actually just going to post something similar to this today but it looks like you beat me to it. Great info! 

Hi @Rob Bergeron thank you for this article. I am interested in learning more about your area. I am currently investing in MA and will be looking to diversify into a couple long distance markets this year. If you have the time I'd love to hop on the line to discuss this market further. Thank you in advance.