All Forum Posts by: Stephen Scire

Thank you Jennifer & Mike ... yes, when I do the #s and if they look good, I do plan on aggressively paying down HELOC

Hello all, looking for help in multifamily / apartment complex -  funding.

I've been looking for multis in our very competitive Boston market but  have recently started searching out of state in other growing areas.

I was thinking of getting more aggressive. I have 3 properties currently, primary...value 650k w/ 320k mortgage , 3 family investment...value 1.2M no mortgage , 2 family investment...value 600k no mortgage.

Am I reasonable to take a HELOC on equity to purchase apartment building at a 1.5 to 2M price range.

I am open to search out of state as well, I just feel very enthusiastic about making the next move.

I guess what I need to know is what kind of buying power do I have …. of course not being too over-leveraged.

Thanks in advance for any input. 

Thanks Frank...I will go with my gut, thanks for the input.

I'll let you know soon how I made out.

Hoping for this new chapter in my life , having calculated decisions in multifamily investing.

So I posted 2 weeks ago hoe I lost a deal being too slow on the offer (2 days)

cash flow was very good , but overthought flood zone.

Now , I have a chance on a 2 family...on the other side of a flip.

have to say ...they did a good job, but after all is done my cash on cash is at 8-9%,

I've been looking at lower quality properties with better cash flow outside of our hot market, (1-2 hours drive)

this one is a nice town, school system, commuter rail...better but lower return.

I'm 56 , have 5 units now & I don't want to feel like I'm settling but It feels much better , the area & distance (10 minutes away)

I am self-employed and this move seems better …. Am I making the right move ?

your thoughts.... ohh and based on many podcasts i've listened to, this theory sits well with me ….. choosing quality over quantity.

On a follow up question , a 2 day open house ( Sun Sun , 1 hour each) ….

should a place my offer AFTER both or pull the trigger before the Sunday open house....your thoughts as well.

I do like the property very much ! 

Yes Charles, thanks, I am keeping communication open with the agent, also a backup to the original offer.

Good thoughts all, thank you

I posted the other day regarding multifamily investing....but in the midst of that I came across a 3 unit summer rental  property in New Hampshire.  

The property was on 3900 sq. ft (small lot) but very functional. 2 buildings, 1st slept 8-10 , 2nd building has 2 units (1st & 2nd floor). Each had 2 bedrooms .

All 3 units had nice / updated kitchens w/ washer & dryer.

Very nice returns, NOI was well over what I've been seeing on 3/4 unit buildings, and this was only summer rental, 4 months.

It was even pre-booked  for 75% of 2019 season 

So , what's the problem?

Looming FLOOD-ZONE !

Although it was only a stones throw from the ocean,  it was the marsh-land to the south that was a threat and seemed to come alive in past winter months.

Now this property was NOT in the flood zone, not yet.  You see....the maps I believe were re-drawn 2 years ago, but have not been released any new info regarding this area. But I needed more info.

Watching videos of past winters' waters rising in the same town, but not affecting this property......calling my ins. agent to validate premiums, validating that it's not in floodzone.... calling my finance officer , asking if this would be an issue....and other miscellaneous research . All this, in 16 hours.

Well , little did we know, the couple that looked at this property immediately after us, beat us to the punch with an offer the next day, 3 hours before my request. 

What does this all mean.

I blame myself. Everything I've been learning,  I didn't do the most basic step. I had the #s, I had the expenses. I saw the cash flow .

I DID NOT LOCK IT UP !!!

My due diligence should of came AFTER I sealed an offer of acceptance.

I believe I over-thought everything in fear of the flood info. I believe I could of made my offer contingent to the new flood map findings.

But instead, I hesitated out of fear.

I'm posting this, because I swear to never let this happen again.

Lesson learned !  

Thanks Joe & Frank....

I'm going to take you up on both offers...

Appreciate you reaching out. 

Yes, JD 

It does help, I know this will be a process & the more info I have the better my focus on a particular area and why.

Thank you very much !

Look forward to that ! Thanks

Frank, Anthony & Colleen....thank you very much for that info, yes I will seek out some real estate investors' groups...

I was looking mainly in the Brown University area, spread out as far as Yale....but need to tour the  New Haven area and feel comfortable with the ride and/ or have a trustworthy contractor/handyman.

I have been to East Providence scoping the area, but need more intimate conversations with local investors.  

I am from East Boston, basically right outside Logan Airport