All Forum Posts by: Joe Rodriguez

@Dedawnte Vassor Hey Dedawnte, BP is the right place to be. Let's connect. As others have mentioned, meetups and networking groups would be the best way to connect and build your team. 

@Dmitriy Fomichenko Thanks!

@Alex Cadoret Yes, definitely a great deal! But it did take me a while to find. Lucky timing I guess. As I mentioned to Anthony, FHA allows you to move in up to 60 days after closing. So as long as a unit is vacant, they usually won't bother you after the deal has closed.

@Anthony Thompson Thanks! Since one unit was slated to be vacant at time of closing, the deal worked. In my experience, my lender hasn't given me a hard time as long as a unit is vacant or there is a month to month tenant. Technically speaking, you don't need to move into the property for 60 days.

Investment Info:

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

Purchase price: $460,000
Cash invested: $16,000

I purchased this 4 unit property back in January. I was looking to add another property to my portfolio and specifically looked for investment opportunities that would cash flow. I had refinanced a previous property, so I was able to purchase this one with an FHA 3.5% loan. Not to mention, my rate is only 2.5%!

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

It already had great tenants and the numbers worked. Not much to do except rent out 1 vacant unit and watch it cash flow.

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

I found it on MLS as I am a licensed real estate agent.

How did you finance this deal?

I financed the deal using an FHA 3.5% down payment loan.

How did you add value to the deal?

I did some upgrades to the exterior and cleaned out and painted the vacant unit

What was the outcome?

4 units occupied and cash flow of $1,125 per month.

Lessons learned? Challenges?

Don't assume something is wrong with a property just because it sat on the market. I was hesitant to see this property as it had been on the market for about 30 days. Looking at the pictures and numbers, it looked like a great. I had assumed something was wrong with it since it was still available.

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

I represented myself on this deal.

Hi Matt,

BiggerPockets is definitely the place to be to interact with local investors and agents for off market properties. I live in Melrose and have invested in Malden so I'm very familiar with the areas you mentioned. Other than your typical MLS listings, I would say networking and "driving for dollars" would be two great options.

@Dmitriy Fomichenko Thanks!

Investment Info:

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

Purchase price: $460,000
Cash invested: $16,000

4 unit property in Federal Hill

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

I wanted to maximize the number of units with the loan program I was using (FHA).

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

I found this deal on MLS. I am a licensed agent in RI.

How did you finance this deal?

I financed this deal using an FHA loan. I was able to refinance another property out of FHA, giving me the ability to use FHA on this deal.

How did you add value to the deal?

3 of the units were already rented. I did some updates and cleaned up the 4th unit. This unit has been rented recently.

What was the outcome?

I will plan on keeping this property for many years and will add value as tenants move out.

Lessons learned? Challenges?

Check any service records on HVAC or electrical equipment. The boilers hadn't been serviced in some time and one of the boilers kept turning off the very first day I purchased the property. I had to get an HVAC company out to replace a few parts and service the unit.

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

I represented myself as the agent and I used John Folino with The Mortgage Network for my lender.

Hey @Alan Vilimaitis I agree with @Avery Heilbron  If your plan is to buy and hold for a while, it's always a great time to buy real estate. 20 years from now, you'll look back and see how much properties have increased since then. Let me know what specific questions I can answer on the home buying process!

Thanks @Will Fraser and @Nathan Gesner! I really appreciate the feedback!