All Forum Posts by: Patrick Flynn

@Pedro Blas welcome to BP you can learn from many people here. One suggestion I have for you is figure out your financing strategy whether it’s going to be cash, some sort of partnership, or a more traditional mortgage route. Talking with an experienced lender or investor can give you some guidance in this area. Either way figuring out financing can help you decide which area you want to narrow in on and begin to deal hunt. Narrow in on your main focus(financing strategy, property type, price, investment strategy) and move on from there after executing on your first property

@Bob Ross There are different schools of thought on whether your home is an investment or not. Personally, I believe it is even if you are not renting any part of it out. No matter what you do you are going to have to live somewhere. Home Ownership gives you many tax benefits that renting does not. If you lock in a fixed rate at 3%, you are protecting your money against from inflation since the amount you are paying will be the same 30yrs from now but worth a lot less value wise. Rent is only going to continue to climb during that same 30 year time period. With a home you are also building equity and you can most likely sell you home for a profit in the future. If you want to move, but not sell your home you can rent it out. You can also use your home as collateral to get capital for other properties or other business ventures. There are many different things you can do with a home once you control the asset. For these reasons your home should be viewed as an investment. As the old saying goes "when is the best time to plant a tree...20 years ago" Hope this helps!

@Alden Graham There are a shortage of houses right now compared to demand in the Boston area which is leading to the super competitive market. With that being said people are still grabbing deals every week and building their portfolios. @Rick Novotny gives great advice and I would echo on becoming an expert on a specific area because this alone will make you feel more comfortable. Two other things I would suggest: 1. Focus on one investment strategy starting out and run your numbers based on that strategy. If you try to do everything at once you will get nothing done. 2. Find someone who can help you find deals whether it is a wholesaler, an agent, or a investment partner learn from them and act quickly when you find something that fits your criteria. Good Luck!

@Wesley Morris

Congrats on the degree, new job and finding BP. Hopefully, you will be able to use some of your financial accounting skills to be able to analyze your real estate investments. The math is not that complicated once you get used to running the numbers especially on smaller residential properties. I understand you are interested in Real estate but my advice to you would be to narrow in on what type of property you want to house hack single family or residential multi family (2-4units) and what location. Some other questions to consider: Are you working remote or will you need to travel? Are you ok living with tenants and doing the property management yourself or will you need to hire a PM? Do you have a pre-approval letter yet for a mortgage so you know how much you can afford? How much do you have liquid for a down payment? FHA loan is a great tool to use especially for newbies. You could partner with a friend your age with similar goals/values to put together funds to afford a more expensive property, find a mentor and pay them a percentage on a short term loan until you can finance out of the FHA loan, or get a gift from your parents for a down payment (not a mortgage lender but parents can give $15k each tax free and then there is a 5% gift tax anything over that). These are just a couple of many strategies you can use if you get creative just make sure you have your ducks in a row before you waste your time looking at properties you have no chance of affording. Let me know if you have any other questions. Good Luck!

It looks like it will cash flow for you (assuming all inputs are accurate) which is awesome and half the battle when finding investment properties. Congrats!

@Brendon Kerrigan You brought up a lot of very good points. I think a big factor in determining what to do depends on if you are you going the owner occupied route or purchasing a traditional multi family investment. Many people opt to use an FHA loan when they go the owner occupied route, which is a great decision due to the low down payment but your mortgage is going to be larger meaning a larger monthly payment as well. Making a larger down payment would make it easier to CF closer to Boston, but some people are still able to house hack and cash flow if you find the right deal. Another thing to consider is if you're going to hire a PM or manage the property yourself because this could affect the CF as well and where you are going to want to purchase location wise. If you are working remote this might not be such a big deal, but if not, how far are you willing to travel to work or to your property if you are not doing owner occupied and you are self managing. Hope this helps!

@Kyle Marsh

Those are all different markets that come with their own pros/cons and different factors to consider. Boston area is tougher to cash flow due to how high your mortgage payment is likely to be especially using an FHA mortgage, but this does not mean you should not do it. The appreciation in the Boston market is also higher compared to the other markets you mentioned, so if you are planning on holding onto the property for the long term that is something to consider. If you are worried about PMI you could always look to find a property that you could put some sweat equity into and refinance out of FHA and after at least (6mo-1yr) into a conventional mortgage when it appraises higher and you have 20%+ equity in the property. There are some requirements for FHA the property, it cannot be in terrible condition to qualify for that mortgage program, but it is a strategy to consider.

@Brian Donahue

Hey Brian thats awesome that you are gearing up to make a move, and it seems like you will be able to use your background as a plumber to do some work on your properties as well. There are a lot of multi family opportunities 20-30min outside of Boston and Marlboro has solid opportunities too. 

@Timothy Walsh Welcome to the community it sounds like you have great ambitions and have taken the time to educate yourself. I understand you wanting to take time to pay down debt, so your DTI improves to qualify for more money. You should also consider how much putting down the extra money that an additional year of rent will save you vs. how much borrowing an extra few thousand dollars actually costs you in the long run. With current rates so low the benefits of saving an extra year may not mean so much in the scheme of a 30 yr mortgage, and you will not be able to recover the money spent on rent in a (A/A+) area. Something to consider, but it is your personal preference. Let me know if you have any questions.

@Joe Delgrosso what towns specifically are you looking to invest in? What type of returns are you looking for? What type of financing are you looking to use? Let me know would love to help if possible!