All Forum Posts by: Colin Kelly-Rand

@Frank Patalano

I have been scouring Greater Boston and Providence for transactions that fit the right profile. I went down and toured about 70 units in Providence (multiple buildings) and the rent vs price + Capex was just not ideal. Plus taxes in Providence went haywire.

I have gone down to Fall River as well, enjoyed the food, but haven't liked it enough to spread myself out more. I manage about 60 units in the Boston area and efficiency wise its best to buy nearby there. 

I am confident cap rates will evantually reflect current rates (a 1% to 2% spread over interest rates), or 6.5% to 7.5% cap rates.  And when that happens I will be an aggressive buyer. 

@Andrew Strong

Hi Andrew, 

Lenders (banks) typically do not like to cash-out investors within a year of a purchase however are willing to pay off liens up to 75% of the value. 

Although as others stated, the lender (bank) is also reviewing your financials to ensure that you can afford the loan they are providing on the flip. If the flip has immediate cash flow they can take that into consideration as well. Also depends what type of loan you are getting - typical residential 30 yr fixed loan or a commercial loan.

So there are lots of questions you have left unanswered.

1) What is the market value post-flip?

2) Do you have enough income to cover your expenses and the new mortgage? (What will be your debt to income ratio)

3) Will the property have positive cash-flow? If so, what loan payment can that net cash-flow (income less expenses) support? 

AND YES 100% agreed - don't do the hard money loan if you cant frickin exit it. You need outs!

Hi Sam!

I hope you have a great resource for navigating which towns etc allow STRs - each time I start looking in an area that I have interest in I find out that the rules are quite restrictive. 

I am hoping I can make it to your event. Happy to learn more about how everyone else is analyzing STRs. 

Kind regards, 
Colin

Hi, 

I have new LG RED Ductless Minisplits Heat Pumps and I am learning how best to use them. They do not seem to have an easy scheduling feature (setting different temps at different times). Also, I want to understand the effect of having two units in one large room - how do they know when to heat vs not heat as they each have a separate thermostat. Does a separate thermostat need to be installed in those situations so they can both be based on it?

Massachusetts offered great rebates to switch so I did - no second thoughts - but I want to make sure I know the limitations of the new system. 

Looking forward to hearing about others experiences. 

Cheers,
Colin

I agree with Rosa in this case due to the unknowns. If the subletter was good on their own their would be less risk as they could take over lease, but since they can't, its not something I would agree to.

Life happens. 

IMHO you often do get a premium for a detached home vs an apartment. 

First I would ask a broker to look at past MLS rented single family homes in Medford and get a baseline on rent.

Secondly- your ideal renter may be a future homeowner who is waiting for mortgage rates (or prices) to fall. So they are likely comparing homeownership costs with rental costs. You can look up homes for sale in your area on zillow and check out what the expenses (PITI) that a buyer would have to pay today - and see how that compares to the rent you would like to offer.

Also - you may fit well into a furnished rental option if your home is nicely furnished. 

Just some thoughts!

Cheers,
Colin

Hey @David B. What day and time does this saga release on HGTV? 

I'm glad your looking into this 40k in and not 120k in. I have hope for this project yet. 

waiting on the next update.

#RenosAintCheap

Good morning,

I am at a BRAGB event this morning about the new stretch energy code. How many in MA are aware that its not coming, its f***ing here!

Its going to affect new construction and additions and major renovations. 

And its pushing all electric and lower HERS.

I am planning for a 7 unit new construction to the stretch energy code in Boston and this is need to know info. 

Who else has an ongoing project that they are adding the new code requirements?

Thanks @Lien Vuong

Banks are going to be more aggressive on prepays (none or lower) as its hard to compete on price, ltv now that dscr is going to be so damaged by high rates. 

what type of building? Resi? If so how many units ? Just curious what other sources your clients considered for financing. 

Cheers

Colin

6.25% - that in MA or FL? What type of lender?