All Forum Posts by: Kyle Marsh

All fantastic points. Just playing devil's advocate, if it's that big of a risk, then why do so many people do for sale by owner? How are they able to handle all of those problems? 

Hello,

I just got my real estate license two weeks ago, and my mother is interested in selling her house in the near future. What should I be aware of if I am selling a house for a family member? I plan on giving her all my commissions, and my broker is giving her his commission as well. A couple of things to note however are that I have never sold or bought a house before, and my broker has never sold a house before. Although he has bought a few for other people. I doubt I will have any difficulties selling the house due to the condition, area, and the current market, I am mostly concerned with any chance of legal risk, or somehow damaging our relationship by messing something up terribly. Even if I somehow sold the house for 50k less than what an experienced agent could sell it for, I would still be saving her money with the commissions. If anyone has any experience with this or any thoughts in general I'd appreciate your input. Thank you!

Best,

Kyle

Hello,

Is it worth forming an LLC with my father to invest in a rental property? My dad and I are hoping to invest in a rental property 50/50 as partners, but he is concerned about putting his assets at risk. He will act as the passive partner supplying half or more of the capital, and I will be the active partner putting most of the work into the property. This doesn't apply as much to me, because I am still a college student and only have 20k saved up which I would use towards the downpayment. What benefits are there to forming an LLC with my dad besides protecting our assets? What risks should we look out for? If you have one yourself, do you regret doing so too early? Any input is appreciated. Thank you!

What ways can you withdraw an offer once it has been accepted with minimum penalities? I am just curious if I got an offer accepted, and I later realized that for some reason I am no longer interested in the property, is there any way I can back out of the agreement? I'd appreciate any input thank you.

I understand this is a very vague question, but does anyone have a rule of thumb when it comes to low ball offers? If you want to put an offer in on a property just as a "shot in the dark," is there a certain percentage under asking that you would consider the bottom line for a low ball offer? I'd appreciate any input. Thank you.

Hello,

Why do the floors/ceilings bow downwards in old multifamily houses? I know that if it's the ground floor there could potentially be structural/foundational issues, but what about when it's the second floor? At what point is the bending too much? I'd appreciate any input thank you.

Hello,

How far away from campus is the maximum distance you would want to invest in a student rental property? Would a 10-15 minute drive to campus be pushing it for investing in a student rental property? Would the rent decrease as you move further away from campus? I'd appreciate any input. Thank you!

Hello,

Should I invest in a single-family or multifamily for my first property? I hope to continuously househack using fha loans and refinance to purchase additional properties several times. I know this is a very market and situation-dependent question, but generally speaking, I'm curious which type of property is more suitable for this strategy. Here are the benefits I have heard from both sides:

-By starting with single families, you are able to build equity faster. By building equity, you can tap into it using cashout refiances or helocs to invest in additional properties. I've heard that a common strategy is to start by building a portfolio of single families and use the equity in them to invest in cash-flowing multifamilies later on.

-By starting with multi-families, it is much easier to qualify for an FHA loan for your next property. A mortgage banker recommended that I start off with a 4 plex, then 3 plex, then work my way down from there. By doing so, the underwriter will be more likely to approve the loan because I am "downsizing."

I'm looking to invest in my first property later this year using an FHA loan, so I am interested in which property will better set me up for the future. I'd appreciate any input. Thank you!

What's up Adrian, 

I am also a sophomore at UMass Amherst studying finance. Have you checked out the Real Estate Club at UMass? They focus a little more on career-related commercial real estate investing, but you will definitely find a lot of like-minded people. With regards to gaining experience, you're doing the right thing by reaching out and trying to network. Keep searching for investors who are in need of a birddog, help with property management, or other things in return for education. I met a real estate investor from Boston after posting a similar ad on craigslist, and I've been working with him over the past few months. I saved up a good amount of money while learning online due to covid, so I'm hoping to purchase my first rental property by house hacking later this year. Definitely feel free to send me a message and we can talk some more. Best of luck.

Hello,

Is the Boston area too expensive for rental properties? I am from Southshore Mass and I'm looking to invest in my first rental property. I am looking to use an FHA loan which means the PMI will make it a little tougher to generate cash flow. I've also been keeping an eye on the Amherst market near where I go to school, but that seems just as expensive. For other buy and hold investors in Mass, do you still look for deals in the suburbs around the city? Or does anyone focus on areas such as Fall River, New Bedford, or Providence where prices are much cheaper? I'm interested to hear what anyone has to say.

Thank you.