All Forum Posts by: Ryan A.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Westerly.

Purchase price: $242,000
Cash invested: $25,000

Triple Decker Victorian in historic downtown Westerly

What made you interested in investing in this type of deal?

Wanted to be rich

How did you find this deal and how did you negotiate it?

Scoured the market for my first deal and found an underpriced short sale

How did you finance this deal?

Conventional FHA low down, low interest

How did you add value to the deal?

Lots of hard work. Help from friends and family. Mostly cosmetic, some appliances to replace, lots of paint, two boilers, two water heaters, yard and garden work

What was the outcome?

House hacked for 4 years, moved out & Cash flowing ~800/mo

Small multi-family (2-4 units) buy & hold investment in Lisbon.

Purchase price: $190,000
Cash invested: $20,000

Live-in 1910 6 bed duplex. Quiet country setting. 2 acres.

What made you interested in investing in this type of deal?

Perfect spot to move the family and landlord at the same time. Great deal.

How did you find this deal and how did you negotiate it?

It was on the market. We caught it quick and made an offer within a week. Already priced below market and ready for move in.

How did you finance this deal?

Conventional financing. 10/1 arm.

How did you add value to the deal?

I do most of my own repair. We cleaned up the vacant unit and rented it immediately.

What was the outcome?

The house currently pays for itself. When we move on, it should gross 1k/mo

 Dave

Any updates here? Was the PM just playing hardball to make money on the sale? Or is there some truth to it?

Need more details. What are you looking for? SF or MF? Are you house hacking or straight Landlording? 

Norwich is tricky. Median rent is lower than surrounding towns. And the rental pool is huge. But you need to be in a desirable neighborhood to get above average rents.

Are you looking for something turnkey or interested in fixing? 125 is too much for a fixer around here. 

@Robert Lindsley - you are spot on, Taftville is a D area. Generally avoided by investors unless you are comfortably familiar with the neighborhood, or live there yourself.

Currently there is some development; an old Mill in Taftville being converted to apartments. That may have further negative impact on your rents. Taftville is the armpit between Norwich (C area minimal growth) and Lisbon (B area currently experiencing high growth.) There is a lot of pass through traffic between towns.

If you need a drive by I am semi-regularly in the area.

Welcome Kyle

Property value is generally higher in Westerly than surrounding area. You can find just about any type property that you want. Rent rates are stable and the tourist/vacation market here is huge although only 4-5 solid months.

@Kevin Scanlon is a good resource for information on the seasonal market since he operates summer rentals in nearby Mystic.

I have a triplex in downtown Westerly & Pawcatuck and Kevin owns a triplex in Pawcatuck as well.

Any questions feel free to ask.

I was just dealing with this. I've decided to state upfront my criteria for determining ability to pay:
Monthly income must be 3 times monthly rent -or- they must provide proof they are making equal or greater rental payments currently.

Should we ignore our moral obligations because the contractor is ignoring us?

I doubt the contractor simply does not want to be paid.

This is the definition of integrity. (+1 Ron) Do the right thing even when you think nobody cares. Its tough to do I admit, but it makes us better for it.

BP
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PO box Fo sho. Why would you put your own place? Thats asking for trouble.