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All Forum Posts by: Craig Fogarty

Craig Fogarty has started 3 posts and replied 7 times.

Post: Massachusetts Title V on a flip

Craig Fogarty
Posted
  • Rental Property Investor
  • Boston, MA
  • Posts 8
  • Votes 1

Good evening!

Hey everyone,

I walked through a single family flip with my GC today and the big wild card is the septic. The seller claims it’s a septic “installed many years ago” he said its been pumped every year but it hasn’t been inspected in some time. The only documentation I could pull from town records is something from the 1940s and it mentions a “cess pool”. The property is 50 feet yards from a large pond and the town requires the septic company to fill out a report any time a tank in that area is pumped. I was told by my GC that depending on the perc test the town could make me put in some $40,000 system if the water table is high. I'm trying to perform my due diligence so maybe I call the health department to see what's been installed in the area recently? Or if they have specific requirements for that area? What do you think? If I make my offer subject to inspection, what actions should I take during the inspection? Any feedback would be helpful!!

Post: Owner Occupant Clause

Craig Fogarty
Posted
  • Rental Property Investor
  • Boston, MA
  • Posts 8
  • Votes 1

I’m considering making an offer on a single family occupied by renters. I’m using a 5% down conventional loan. They each rent a room inside the property and the owner is absent. They’ve been in the property for 5 years plus without issues to the landlord. Can I move into the vacant room inside the property and leave them in there without violating any owner occupancy clause? Thanks for your help in advance.

Post: ATTN: MA investors Coc Roi/Cap Rate - Taunton,MA

Craig Fogarty
Posted
  • Rental Property Investor
  • Boston, MA
  • Posts 8
  • Votes 1

@Mark Mahoney do you find it common that properties in Massachusetts don’t meet the 1% or 2% rule?

Post: ATTN: MA investors Coc Roi/Cap Rate - Taunton,MA

Craig Fogarty
Posted
  • Rental Property Investor
  • Boston, MA
  • Posts 8
  • Votes 1

@Mark Mahoney I really appreciate the feedback! Thank you.

Post: ATTN: MA investors Coc Roi/Cap Rate - Taunton,MA

Craig Fogarty
Posted
  • Rental Property Investor
  • Boston, MA
  • Posts 8
  • Votes 1

@Mark Mahoney that’s exactly the feedback I’m looking for! I don’t want to jump into the deep end and realize the deal isn’t a match to my strategy. The more I analyze this, it has owner occupant written all over it and that’s not what I’m trying to do. With all my expenses lined up I just don’t think there’s enough meat on the bone unless I put down 20% - 30%. If I’m an absentee owner I really don’t want to drive down there all the time and I won’t be able to afford a property manager at 3.5% down.

Post: ATTN: MA investors Coc Roi/Cap Rate - Taunton,MA

Craig Fogarty
Posted
  • Rental Property Investor
  • Boston, MA
  • Posts 8
  • Votes 1

@Mark Mahoney it’s very difficult to build up a 20 to 30 percent down payment in i Massachusetts unless you’re investing in the tail end of markets. I live in south Boston and you can purchase 3 multi families in New Bedford for the price of a condo here lol. I’m investing in the city of taunton which will be the first new stop in the south coast commuter rail project so I’m anticipating appreciation to continue to rise.

The property doesn’t need much maintenance because it’s been updated. It will need a new furnace at some point in the future and I plan to take care of the lawn myself. I accounted for utilities in my calculation from what the homeowner provided me. Taunton runs at about 3% vacancy rate so even when I add that to the calculator I get coc roi of 29.75%.

Using the 50% rule My monthly cash flow is $185.94. Is this good or bad? I don’t want to jump into this to realize that I’ll be paying more out of pocket than I expected once it’s up and running.

Post: ATTN: MA investors Coc Roi/Cap Rate - Taunton,MA

Craig Fogarty
Posted
  • Rental Property Investor
  • Boston, MA
  • Posts 8
  • Votes 1

Good Afternoon fellow investors!!

I'm contemplating putting an offer on my first multifamily (2 fam) and I need some guidance on the deal. It seems like cash on cash return and cap rates vary from area to area. I know Massachusetts is one of the hottest markets in the country right now so I want to make sure my numbers look good. What is a good cap rate and coc roi in Massachusetts and specifically the taunton area??? I'm using an FHA loan with a 2.75% fixed rate. I'll be using some cash up front to make some updates and adding coin op laundry. My fear is paralysis analysis and not pulling the trigger because I don't have enough information. The property is semi updated and sits in a decent/quiet neighborhood close to the center of town. The only thing I didn't really factor into my expenses was vacancy.

Any help is appreciated!!

Price: 305k

NOI: $23,112

COC ROI: 33.61%

Cap rate: 7.58%

Rents:

4br townhouse: %1800/month

1BR: $975/month

Monthly income:$2775.00

Monthly expenses:$2067.65

Monthly cash flow: $724.44