All Forum Posts by: Ema Silva

I've come across a lot of land in Brockton where we can develop a 5 story building and it has the potential to fit 24 units in there.  My partner and I have a General Construction company (CSL). However, it seems that funding is going to be the biggest hurdle for us.  Is there anyone that could advise us or work with us to make this happen?

Thanks @Carini Rochester and Great info. I am moving forward with the building

I am looking at a property, in MA, that is a legal 3 unit with a legal finished in-law basement. Currently the basement is being rented out per room. What are the potential risks and is it worth it?

@David Bilandzija Thanks for the perspective. I'm moving forward

@Hersh Shah Thanks. Great info

@Matthew Irish-Jones The numbers seemed too high at first to me as well, but I went over the numbers a few times and I am factoring all the expenses. The property is a legal 3 family and is being appraised as such. There is a finished unit in the basement that they are renting out. When they first put it on the market, they received offers over a million. However with the appraisals coming back at around 870K, no one was interested in covering the difference with the appraisal. 

@Arn Cenedella I am factoring the rent for the unit I would be living in because the way I see it is that instead of being 2.1k for rent, I am saving 2.1k. Eventually when I move out, it will be money that I am receiving. It is a 3 unit but being used as a 4. I've factored in PMI, taxes, insurance, 3.5 vacancy rate, 3.5 Capex, 3.5 maintenance, water, electric, interest. This is a turnkey property being rented at market rates with no room for increase.

Thanks @Arn Cenedella that info is very helpful. The property is valued at 870k and the owner wanted 930k. We have settled on 900k being the number that we are both comfortable doing. I spoke to two other real estate professionals about the deal and they it is too overpriced for the market and that I am already buying at the top of the market, so why would I overpay on top of that. The feedback had me seek out more perspective. I believe that there will be no appreciation in the next several years. This market exploded and values have nearly doubled since 2015. That being said, I am buying this one for cashflow and using FHA.

@Matthew Irish-Jones I am using FHA.

Should I pay an extra 30k above the appraised value? It is multifamily. After said expenses, fixed and variable, it would net 2k a month. The CoC is 34% and the cap is 7.6%.

I just dont feel good about paying an extra 30k above appraised value in a market like this. Thoughts?