All Forum Posts by: Joe Rodriguez

@Account Closed Hi Darryl- thanks for your service! I am a real estate agent licensed in Both MA and RI. I have purchased multi family homes in both states. It' can be a very different market in both states in terms of purchase price, rentals and even areas. I'm more than happy to jump on a call or email you with some suggestions on areas but I'd like to get more feedback on your short and long term plans so I can give you my best advice. 

@Ellie Ryan Hi Ellie, although I am not currently in need of design help, I will be looking for a vacation home in Maine in the future (maybe within the next year). I am licensed in MA and RI but not Maine and I was actually just thinking about making connections with agents in Maine. My fiance and I go up a few times a year and love it up there. Best of luck on the design side!

@Dan M. I did not. Perhaps if I knew more about the process during that time, I would have. But I wanted to sell so I could use those funds to buy 3-4 unit properties and I believe with 1031 you would have to re-invest in a similar property. 

@Faith Gracia @Joao Victor Souza As others are suggesting, house hacking is the way to go. I started back in 2015 with a duplex in Malden, MA and was able to refi into a conventional loan and buy another with FHA as well.

I would suggest to build your team (lender and agent), get pre-approved for a 3-4 unit home. With COVID these days, a lot of agents are requiring pre-approvals before showing the house. 

Let me know if I can answer any questions about homes North of Boston.

I love the Federal Hill area. I grew up in Providence and now live in Melrose, MA but invested in a 3 family on the hill last year. Did some pretty simple cosmetic upgrades, got good tenants in there and refinanced. Value came back +130K in about 1 year and a half. I'm currently looking for 3-4 unit properties in the area. Rents are pretty good and you can get a nice mix of college students and working professionals. 

Definitely! Shoot me a message and we can connect. 

@Maddie Kirwin Hi Maddie- congrats on getting started! Best of luck on any offers moving forward. I think house hacking is a great idea, especially in the Boston area since prices are so high. I did the same with a 2 family in Malden a few years back. It needed some work so I renovated it and with some appreciation, I was able to refi in about 6 months and get a conventional loan.

I understand your concerns but if you’re going to live here for at least another few years, you could have several options to buy the next one. Try to find a property that needs a little work, of course too much work might not qualify and completely renovated won’t allow for much value add. Maybe paint, flooring, fixture upgrade, etc. Also, simply raising rents and getting market value can help. So many properties out there have long term tenants and keep rents the same which can make a big difference in cash flow.

Hope that helps!

Hi Larry- I'm a cash buyer and would love to be on your list. 3+ units in the Federal Hill area or single family properties in Warwick preferred. Thanks!

Thanks!

Investment Info:

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

Purchase price: $320,000
Cash invested: $25,000

3 Family buy and hold deal in the Federal Hill area of Providence, RI

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

I grew up in Providence, RI and knew of the potential upside of investing in the Federal Hill area.

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

I found this deal on MLS as I am a licensed real estate agent in RI. The property had been on the market for a couple of months and needed some work. The owner was an older gentlemen and had family living in another unit. Due to updated electrical codes, they had to upgrade the electrical panels and add a common electrical panel so I figured this would be a great time to buy as all of the electrical panels and wiring would be updated by the seller.

How did you finance this deal?

I financed this deal using an FHA 3.5% loan

How did you add value to the deal?

I renovated the 1st and 3rd units including flooring, painting, appliances, window blinds. I upgraded the 3rd floor heating system from an old steam radiator to a forced hot air system. I added coin operated laundry in the basement and separated the rest of the basement for my personal storage. I also added a full bathroom in the basement as the previous owner did the rough plumbing but never completed it.

What was the outcome?

I currently own this property and recently refinanced. With the equity in the property, I was able to get out of my FHA loan and into a conventional loan allowing me to purchase another property using FHA. Cashflow is at $1,400/ month.

Lessons learned? Challenges?

Focus on the right tenants. Fortunately, I waited to find the right tenants. I lost out on a few months of rent on the 3rd unit as I had many people interested but no one that met the criteria that I set. Now with COVID-19 and everything going on, I am still receiving rents and have minimal issues.

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

I represented myself as the real estate agent and the mortgage lender was John Folino with The Mortgage Network.