All Forum Posts by: Justin Hammerle

Hi Robert I agree, you should request documentation proving that the property is grandfathered in as a 3-fam prior to closing.  If they cant provide, I would kill it.  

Hi Abby - a lot to unpack here I would just simply say that what you do with your investment returns is entirely situational and dependent on your goals.  I'm not sure there is a right or wrong answer, and If you are looking for returns there will always be risk to principal.  With regard to the 8%, it sounds to me like this is just a general hurdle rate, whereas if you are considering an investment that is yielding less than 8%, there is likely a better deal out there - whether it be the stock market, real estate or VC.

I would double check to see if the zoning does not already allow multifamily use by special permit or some similar process. If not, and a rezone is needed, these can be done but it can be a very heavy lift. It may be best to just avoid and find a property that allows multi by right.

Hi Kim - without MLS or another paid subscription your best bet as Mark mentioned is your third party sold comps from websites like zillow and realtor.com.

You could also further verify the information from each sold comp from these these sites by using the town's online assessment records.

Hi Phillip - you could try to tap into the equity of your home through a HELOC to use those funds as a down payment; you could then use a bank or private source for the acquisition and rehab. Then refi out to perm loan with a bank and payoff the funds used on the HELOC for the down payment.

Hi Austin as Mark alluded too, cap rate valuations typically are not used or weighted heavily for non-commercial properties (5-units or less). 

It does sound like a tight deal as reported; you could always just sell if it comes down to it.  But I believe you have to assume here that your equity is going to be tied up longer than anticipated if you are trying to hold.

Hi Jerell - is there a particular area in RI you want to be in?  Although slim there is inventory for multi's in the $350k price range around the Providence area;  nothing glamorous of course but you will have some value add upside.

If you are approved for an FHA, house hacking a multi is likely going to put you on a faster track to scale a rental portfolio than the suggested SFH strategy.

Hi Isaac, I would look into an analyst/acquisitions position for a national developer/REIT/Local development firm. These are typically entry level with no experience needed. You could also consider getting your sales license and working with a commercial real estate brokerage. You should have a fair amount of options in a city like Chicago.

Also like to add if you have not already try to subscribe to a credit reporting service so that you can view your credit score and all the components of it.  They also notify you when your credit score changes and why so can you keep tabs on how you are impacting your score.

Sean - I assume rezoning the land to campground use will not allow you to build a SFH on the property correct? I would check the zoning regs to confirm. If that is the case you are somewhat forced to subdivide the land to allow for the SF construction.