All Forum Posts by: Mekkel Blanchard

Hey Brian! You are in the right place to make connections. Biggerpockets has been a great tool for me. I would also try to attend at least one networking event a week. You can search real estate events on BP, meetup.com, and eventbrite. If interested I can send you a list of the ones I normally attend as I am in the south of Boston/RI area as well. 

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $400,000
Cash invested: $80,000

5 Unit Residential property purchased off-market. Consists of (2) one bed units and (3) studio units. Business plan is to go in and update the units and list all of them to medical professionals/traveling professionals.

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

the price! Also I am familiar with the area because I have another property 2 minutes away. The town is also cleaning up and businesses are growing, therefore desire to live in this area is growing.

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

Off market pocket listing from another real estate agent I met at a real estate investor meet up.

How did you finance this deal?

Commercial financing with 20% down 6% Interest Rate

How did you add value to the deal?

Business plan: To do some light cosmetic updates and rent the entire building to traveling nurses/working professionals.

What was the outcome?

Just closed on the property and it cashflows on day one with the current rents. Business plan will increase the cash flow!

Lessons learned? Challenges?

Take your time when working directly with the seller. Figure out ways the seller can get a deal as well as my self as the buyer.

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

1st Commercial loan I ever did with a small local bank with pretty good terms. No pre-payment penalty with 20% down and 25 year term.

Woonsocket RI, Pawtucket RI, Taunton MA!

Hey @Connor Sheehan awesome to hear that you are taking the steps to house hack your first property! Definitely will be location specific. The goal should be whatever you currently pay for rent - you ideally want your mortgage payment to be less then that after you have received the rent payments. Once you own your first property and start paying down your mortgage and building equity you will be Able to tap in to the equity down the road with a HELOC and leverage debt to purchase more. So as long as you are breaking even or not paying more then what you currently pay for in rent I think its a no brainer and better then renting! Ive done some housing hacking myself in Cumberland RI and Taunton MA and has been the best decision ever! Also the bigger the property the better so always look for 3-4 units and 3+ beds if possible.

Hi @David Barrera Since you just switched and started your 1099 job you will most likely need a year or two in work history in that new field of work before a lender can do a traditional loan with you. Another option is the DSCR loan which isn't based on income but based on the properties cash flow. Only thing is you have to put anywhere between 15-25% down with a DSCR loan.

Hi @Jerell Edmonds as everyone has mentioned house hacking is the way to go! Take advantage of the lower down payments as much as you can. As long as you take action acquire the first one and begin to pay down your debt you will begin to build equity and hopefully be able to save more money quicker to purchase the next property. Then down the road you can tap in to your equity with a HELOC/LOC to purchase more property and begin the snowball effect from there!

Hey Brandon! Congrats on being a new property owner. I have a tax accountant that I use that helps me and she is great. I own property in MA, RI, and FL and she has been great. I had to stop using turbo tax immediately once I started investing ahaha. Message me and I can share her contact information. 

Hi David, Awesome to hear you have taken the most important step - Education! As most have already said it will simply come down to the numbers. Every property new or old depending on the work it needs has a number - meaning there is always a correct amount to purchase the property at to make sure you are not over paying! I have purchase buildings from 1900-1960 in the New England area and it is important to do your due diligence and to have someone on your side while walking properties to point things out that you may not be familiar with. Good luck hunting! Take action and educated steps towards your goals and you will be successful!

Hi! Awesome to hear that you jumped in to real estate and already own one property. Some ways you can tap in to funds to rehab your property: Try to get a business line of credit through your llc. Another option is apply for a personal loan. With your current job do you have a 401-k? If so you may be able to tap in to those funds using a loan against it. I hope this helps! I also rent to traveling nurses in Taunton Ma if you ever need help/advice once your property is up and running 

Hi @Tammy Ginsburg I’m a realtor/investor in Ma and RI. Massachusetts prices in areas are very high. Have you considered investing in RI? It’s a cheaper market and lots of rent growth in certain areas. Let me know if I can help with anything! I invest myself and have properties in RI, MA, and long distance in FL so I can answer questions if you decide to go long distance as well