All Forum Posts by: Ryan P.

@Justin Repp That's brilliant. I unfortunately did not speak with the appraiser myself, it was my neighbor, but I will check with my neighbor later today to see if he possibly has the appraiser's info.

Regarding your realtor reference, That would be awesome! I'll send you a request & PM you now. Thanks much!

@Mike Hurney Hello, you're like a local BP legend in my eyes haha, would you mind elaborating on what I should be looking for with FHA appraisal standards. All I can rly find different about FHA 203k appraisal vs conventional, is that FHA appraises for "as is" value , as well as ARV. Where the as is appraised value should be at least agreeable with the purchase/contract price, & the ARV helps determine the the loan amount for repairs.

Also, from a deals perspective, do you think wholesalers are a viable resource for small MFR deals in Boston/Hyde Park for someone looking for <300k MFRs? As a wholesaler, do you typically have any deals in the Hyde Park area?

Thanks 

@Chris Trudel thank you for your feedback, that's encouraging. I'm tired of sitting on the sidelines & I'm ready to take action. I would love to take you up on that offer & chat with an experienced local realtor such as yourself. I'll PM you. 

@Sarah Shockley Hey! Thanks for your feedback as well. I will certainly keep an eye on the local HUD & Homepath props. There are not much listings here, but when one comes around I'd want to be ready to pounce. There are not much MFR deals on the market in general here either so I am definitely going to explore off-market opportunities/marketing for a house hack, which will also lessen the competition from a deals perspective as you mentioned.

@Michael Caras Hello, I do indeed plan on occupying the property for at least the one year FHA requirement, with the potential of refinancing out of the FHA sooner or later.

@Jaysen Medhurst Thank you for your input. I imagined an FHA 203k is the last thing the bank would want to deal with. I thought maybe just maybe if I had things in order (pre-approval & generous earnest deposit), and I could get to the bank immediately, then I might be able to provide just enough value for them to possibly listen. But I'm just a bright-eyed rookie haha.

In regards to the ARV as you mentioned, this is what makes the property so interesting to me. Mind you, I am very new to RE & have yet to speak with a realtor regarding this property. However, according to comps in my 02136 zip code, this property should easily have an ARV of at least $300-350k. There are also TWO beautiful, brand new, 4-story, 4-unit properties being built right across the street, which I would think only impacts the intrinsic value of the foreclosed property positively.

With that said, the property is in need of some serious TLC (new roof & internal water damage are just a couple of the things I'm aware of), and both units have been vacant for over a year or two. I'm sure the $190k appraisal came in as low as it did for a reason, and I would have to verify the ARV. Also, the property appears to have been refinanced for $357,000 in 2006, so I'm sure the bank will not be too willing to take such a loss for the property as is. But at the $190k appraised value, assuming the rehab costs were right, this property has a lot of potential from both a cash-flow & equity/flip play.

Thanks for the tip on the duplexes as well. I've always felt that if I'm going to go with a small MF, why not go for the 4 unit & maximize cash flow on each property. I'm in the early stages of getting comfortable analyzing deals & I look forward to closing my first deal. Thank you for all your feedback!

@Michael S. It's been a promising year thus far for the Sawx huh?! Thank you for the warm welcome, and advice. Building my RE network is step 1 for me. 

Hello all,

I have been following BP forums, blogs, & podcasts for the past year & am excited to begin my RE journey. 

I live in Hyde Park (Boston), MA, which is a fairly expensive market. For my first property, I am seeking a distressed, small MF (2-4 units) in my area to House Hack, utilizing a FHA 203k.

According to public record (MassLandRecords.com), the owners of the duplex next door to my current residence have been released from the mortgage, & the property has been taken back by the bank, however, it has not been listed publicly as of yet. My neighbor happened to chat with the appraiser who was out doing the appraisal, & notified him the property appraised at about $190,000. In terms of a potential purchase price, I am not too sure how much a factor that may play, in conjunction with how much was owed on the property. However, the $190,000 value plus rehab, may very well be in my range. I have ran the numbers to a degree using Brandon Turner's Rental/Flip Hybrid Calculator to see the price point where it would be interesting for my goal of at least $200 cash flow/unit (post owner-occupancy requirement), and am hoping to get to the bank before the property goes "public." I am not too sure how willing banks are to work with FHA 203k loans on REOs, however, I'd like to get all my ducks in a row so I can make a legit offer on this property if, and any future properties for that matter.

With that said, I'm not too sure where to start exactly. If anyone has any referrals for an FHA 203k lender, and/or investor-friendly realtors in my area, this newbie would greatly appreciate it! Also, any feedback/guidance on this matter/strategy, or in general, would be more than appreciated as well!

Thank you,

Ryan

Hello BiggerPockets,

My name is Ryan. I have been an active follower of BP for the past year, browsing forums/blogs & listening to podcasts. And man, I am excited to finally get this monkey off my back!

I am from Hyde Park, MA (Boston) & am interested in Cash-Flowing Buy & Holds. I live in a fairly expensive market, and am specifically looking into House Hacking a small multi-family (2-4 units) in my local market. I currently work full-time, and my ultimate goal is to gain financial freedom for myself through passive income from my rentals.

I am a lifetime learner and am looking forward to meeting some great ppl here, and learn as much as possible to start my RE investing journey!