All Forum Posts by: Dieggo Goncalves

Closing on my first property tomorrow in Concord NH and I just received my first quote for finishing the rehab on the studio unit on the second floor. The 3 room unit (kitchen, bath, living room) is partially rehabed. The bath only requires adding a fan and putting toilet and sink back in. The kitchen needs the ceiling replaced floor replaced walls touched up and a few other little items. The living room is done. The contractor, who comes recommended by a BP member and as a heavy construction contractor he speaks my language, and I see us developing a long relationship. When he gave me the pricing to finish the unit I was a bit taken a back. The studio is about 360 SQ and the rehab cost is $11,500-$12,000. He said it could be lower, but thats what he quoted. Thats about $32/SQ. All appliances, toilet sinks, etc are existing. Just as a gut feeling, does this sound reasonable. Everything I know tells me to get another price, but based on the reference and my interaction with him, I think hes fair. Just looking for the communities feedback.

Another point to add, which I think I like; He isnt quoting a set price. He works off the cost of materials and an hourly rate for his crew, which is based upon the crew onsite and their time. What experience do you have with this. Would you rather a set price or have the contractor work on a T&M basis?

I'm looking at a few 3 units in Manchester, New Hampshire near Elm Street, it's my assumption since everything Shops, bars and parks are on Elm that Elm is a desirable place to live/own a property. The Three properties are on streets near Elm (2, 3 and 5 blocks away, walking distance to downtown Manchester), one is on Auburn St, one on Lake ave and one on Merrimack st, the farthest one away from Elm is 5 blocks away. My question is this downtown area a good place for a first time investor? This will be my first, hopefully not last, multi I buy in the area and I want to make sure this is a semi decent place to live/rent out an apartment. Mind you I will be occupying one unit for my FHA load stipulation. Thanks for the help

@Dieggo Goncalves

I am also located in Milford. I’m am interested in getting into fix and flip and also rental property. I would love to join the meet ups if you have more information that would be fantastic!

Hello to all BP community,

I am currently a GC in the SNH area. I have been for the this business for the past 15 years. I have a major passion for real estate and can wait to learn more from all of you on here. Really looking to connect with anyone in my area in all aspects of real estate investing.

Please feel free to reach out to me to get connected!

Let me preface this by saying... I've seen A LOT of posts recently of people under 25 asking for advice about getting into real estate.  And I think that's great, don't get me wrong.  I put out one of those posts when I first discovered BiggerPockets too.  Young people interested in bettering themselves financially and thinking about real estate while many others are focused on partying... that's a great thing!  Power to you!  

BUT... many of these posts go something along the lines of "I've got no money, no credit, no job, but how do I be successful in real estate?"  Wholesaling seems to be a common "get rich quick" path that people want to try.  Some ask about how they can get a seller to finance their first deal for zero money down.  Others want to try the complicated sounding master lease option.  But in reality... the odds of any of those things being the magic pill to creating massive success in real estate is slim to none.  

I took a bit of a different path, and since I probably caught some eyes with the flashy headline and the fact I posted this in the "Success Stories" forum... I'll explain a little bit of my story here.  I joined BiggerPockets five years ago as a small-town, 16 year old, New Hampshire boy, motivated to make it big in real estate but having no clue how to actually do it.  One of my first posts was polling the members here "is it worth going to college for a real estate degree if planning on being a full-time investor?"  (Spoiler alert) -  I didn't end up going to college and I gained a lot of valuable insight from the responses I got.  Ultimately I realized that to get into real estate investing... you do need money and you do need a job.  Otherwise you can't just buy properties!  

So I figured "well if I can't buy properties myself, I should do the next best thing which is sell them to people who can!" and that's how I decided to pursue the path of being a real estate agent.  I'll fast-forward through a lot of the details, but three and a half years after having gotten my real estate license, I'm closing out this year selling $8,218,300 of multifamily properties for a combined total of 117 multifamily units.  And contrary to my profile picture which still makes me look like I'm in middle school... I am 21 years old.  I've helped out a lot of first-time and a lot of experienced investors alike... both with buying properties and selling properties.  This year was a huge win for me and I'm very happy with the success in my real estate agency business.  However, there is a not so successful part of my story here too.  

I bust my a-- working 80+ hours a week, opening doors, showing properties, pushing paperwork, and... here's the kicker... I STILL HAVEN'T BOUGHT A PROPERTY.  Being self-employed and only three years of credit history makes it really hard to qualify for a mortgage.  2019 is finally going to be the year that I can afford one... because my last two years of tax returns show I've made enough money to get approved for a mortgage.  I have my sights set on a great four family that I'm hoping to have purchased by Spring but there's definitely a lesson to be learned here.  

For all of the aspiring young real estate entrepreneurs and investors out there reading this post, here's my words of wisdom for you... 

1. GET A JOB - (W2 income is sooooo much easier to qualify for a mortgage and make consistent income.  Plus, you might hate real estate as a full time job.  Hanging drywall and fixing toilets ain't so glamorous in real life)
2. SAVE MONEY - (yes you need cash in the bank to buy a property.  There are great programs out there that can get you low-money down or no-money down loans... but it still takes cash to operate a property and you need to have an "oh s---" fund in case something breaks)
3. DON'T RUSH -  (it takes time to build wealth in real estate.  You can't expect to go from reading a book to owning a big apartment complex in six months.  You need to spend time educating yourself, viewing properties, getting money lined up, analyzing deals, and THEN... MAYBE... pulling the trigger)

There is no "get-rich-quick" scheme in real estate.  You have to work hard and you have to spend a long time before you'll even be moderately successful in the industry.  If you want to get involved as a real estate wholesaler or agent or flipper... great!  There are some very successful people in those spaces that frequent these forums.  But you have to work twice as hard as anybody else in your market for YEARS if you want people to know your name, respect you, and want to do business with you.  Its not for everyone and there's no shame in buying one property every couple years passively while you're happily pursuing your passion in a completely different industry (and hopefully making lots of dough!)  And don't forget... if you don't have a W2 job... getting financing is really difficult.  I found that out the hard way :)

To all of my would-be, up-and-coming, or already wildly-successful, young real estate entrepreneurs... I wish you the best of luck and success in 2019!  And to all of those that are older and wiser than me... thank you for your continued support and guidance, and I hope your year is fabulous as well!  

@Dieggo Goncalves You'll have to check with town hall in wherever you plan to do this.  There's no blanket answer for every town.

@Dieggo Goncalves That depends on the term of your lease - but I would not expect a landlord to be especially friendly to the idea.

Brian, I’ll find an agent that does Vermont Mutual. They can do inspections, electrical done by a professional electrician, furnaces new within 7 years. Oil tanks replaced 2 years ago. The only lead they’ll find is one room with baseboards which were ratty so I attached ¼ luan plywood strips to the face and used plaster to flat top them. If they can find something they think needs work on I’m game.

Dieggo, it’s in Keene, NH. I think you are correct—time to find a new agent.

Tim, I’ve had this triplex since 1983—never a claim on anything. Apparently that does not help here.

Brian, No repairs needed. Yes, I’ll cancel and go on to the next though this will be attempt #5. Four of those were through Geico, perhaps there is the issue. Brian, you mention that Vt Mutual does inspections. I don't mind exterior/walk-around and/or basement but I'm sick of having to show interior of each apartment. What sort of inspections does VT mutual do?

Megan, Why did you flip from VT Mutual to Ohio Mutual, if you care to say.

Anne, Ouch! I had one pseudo-suicide that was messy in an odd way. A great tenant who started taking long walks with Johnny Walker and I’d keep an eye on him—very amiable person. One day I found him severely dehydrated (I’m an RN) and called 911. He never came back and had the hugest furniture, great giant stuff from the 1940’s, it was a nightmare removing it and some I simply chopped into pieces. Amazing how a dresser that was worth $250 at auction in the 1980’s now has no value at all. I suspect that your “messy” was perhaps more traumatic than logistical. I’ll try Slawsby insurance.

Thanks again everyone.

Am I the only triplex owner living in insurance hell? Is it NH?

Three years ago my insurance company demanded that I get a licensed electrician inspection. $550 down the drain, results = 1 jumper to hold ground if the water meter is removed. What a waste. Then insurance demanded that I replace a porch floor that is rotted. I did with quarter sawed vertical grain T&G fir, carpenter said: "What rot--there was none only some edge cracking." Nice floor for $2k. Then a month later policy "to be cancelled." Agent said "it's not you, they are pulling out of the state." Old policy $780 agent found a "nice" policy for $1900.

I get a policy through Geico, "it's a triplex--owner occupied" I adamantly said. Yes it is covered. Fast forward about 14 months: "To be canceled we don't write for a triplex."

I go back to Geico, get a new policy. "It covers a triplex." One month later: "To be cancelled, triplex."

I go back to Geico, get a new policy. "Yes, I checked they cover triplex." One company wants a lead cert at $800 another no lead cert required @ $1400. So it's winter and I like the idea of a lead cert but want a good one and that includes outside dirt--so not an option in winter. I go with the $1400 one. Two weeks later I get a note from Hartford Insurance: "You have 30 days to get a lead cert." Letter states December 23, received Jan 3rd. (?)

Ok, I'll get a lead cert, I think. I've owned my place for 34 years. All clapboards replaced, all trim chemically stripped--really! I get a list from NH and call--"we can do it in 8 weeks."

Worse, since this barrage of open/close insurance, money is debited from escrow two times in a row so my mortgage goes from $1255 to $1600. Of course eventually the refunds come and then it takes hours to get the bank to accept the two checks into escrow.

*Wah* I wish I had never bought this place. I'm feeling very bullied. Are other triplex/duplex owners getting this crap?

Monday I'll call some private insurance agents. I'm very happy to do a lead inspection but in summer not now in winter.

Btw: There appear to be two lead certs in NH

1) Insurance Safe Cert triplex cost estimate about $850 (a 2BR owner occupied + 1BR rented + 1 BR rented)

2) Lead Safe Cert. I am told this is the one to get and approved by EPA and NH but it requires (in my building ~55 "wipe samples" @$15- each)