All Forum Posts by: Michael H.

Zuck Painting - local investor and has a painting company

Interested to see if interest rates will affect pricing. Likely it will balance out if supply increases but rates drop. What could lead to increases in supply? Economic environment is still hard for many people with rising costs and mostly-flat wages. However, many government subsidies for rental assistance available. The biggest challenges are still there for first-time home buyers looking for starter homes. 

Messaging for address

Wendell, not super tapped in on this space but I believe you can get a 90%+ Loan to cost (LTC) for residential owner-occupied. Commercial loans are around 60-70% Loan to Cost. Commercial Loans you can structure a refinance at the end of construction (a BRRRR) or set up construction to permanent financing from the jump to avoid the event. I'm not sure about current cost PSF to build, I've heard for bigger commercial projects it can be around $350-500K a unit.

Hi David,

I am a Worcester based real estate agent and property manager. 

We buy windows frequently at A1 Window & Siding. You have the right approach of using a pro to to realign and repair all of the windows that you can and replace the rest. 

Happy to connect on the local Worcester market.

Thank you,

Michael

Investment Info:

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

Purchase price: $500,000
Cash invested: $125,000

Contributors:
Andrew Freed

3 Family investment property in the Green Hill Neighborhood of Worcester. Cash flowing three family on a corner lot with great access to downtown, the Lincoln street retail hub and I-290. Steps from the 500 acre Green Hill park.

The building consists of a three bedroom / two bathroom, three bedroom / one and a half bathroom, and one bedroom one bathroom. Future plans include exploring adding parking and some non-urgent improvements to the basement and adding gutters.

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

Located in my target area with reduced cap-ex profile.

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

Bought on-market. Purchased at market pricing.

How did you finance this deal?

20% down 7/1 ARM at 4.6%. Purchased 50/50 with a partner in an LLC.

How did you add value to the deal?

Increasing rents to market through housing providers and working with the market apartment to find a mutually beneficial outcome.

What was the outcome?

Rents brought to market.

Lessons learned? Challenges?

It's nice to buy buildings that are already in good condition compared to the four fixer uppers I have purchased previously.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

DM for bank information.

Investment Info:

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

Purchase price: $500,000
Cash invested: $125,000

Contributors:
Andrew Freed

3 Family investment property in the Green Hill Neighborhood of Worcester. Cash flowing three family on a corner lot with great access to downtown, the Lincoln street retail hub and I-290. Steps from the 500 acre Green Hill park.

The building consists of a three bedroom / two bathroom, three bedroom / one and a half bathroom, and one bedroom one bathroom. The apartments and building are in good condition. Future plans include exploring adding parking and some non-urgent improvements to the basement and adding gutters.

Purchased in a 50/50 partnership with an LLC.

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

Located in my target area with reduced cap-ex profile.

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

Bought on-market. Purchased at market pricing.

How did you finance this deal?

20% down 7/1 ARM at 4.6%.

How did you add value to the deal?

Increasing rents to market through housing providers and working with the market apartment to find a mutually beneficial outcome.

What was the outcome?

Rents brought to market.

Lessons learned? Challenges?

It's nice to buy buildings that are already in good condition compared to the four fixer uppers I have purchased previously.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

DM for bank information.

Putting in a stove hood in one of my units. Will depend on if you need/want to run the duct work for the venting and how much of a PITA that will be. If you send me a message I can let you know where it shakes out.  

@Andrew Freed is the man you want to talk to 

I would consider a syndication. @Jonathan Bombaci leads a team of agents local to Mass and is working on raising funds for some large scale multifamily projects in NH right now. He has a good track record with these projects and could be a good hands-off avenue to put that capital to work while you focus on your career shift and family.