My first deal.

Its a duplex in West Seneca, NY. Pretty good area, sort of on the buffalo fringe, but West Seneca insane taxes keep the riff-raff out. (about $2300/year in taxes) after STAR.

Paid $46,900 with some buyer concessions going on there, financed with a SONYMA loan at 5.5% 30 year fixed. Came out of pocket with around 1500 at close, walked away from close with a check for 600.

I've had the house since June, we put about 5000 into the house, doing most of the sweat equity ourselves. Place looks great, we rent the upper for 525 per month, water included.

Mortgage is 608 per month (nearly 50 percent taxes), I live with my girlfriend and we both pay $41.50 per month to live there.

We are considering a move to Arizona VERY soon. Our lower unit is upgraded over the tenant unit and the lower unit has off street parking, and laundry. We think we can get $600 for the lower.

608-525-600== It should Cashflow 517 per month.

I'd be stupid to sell the house, but another exit strategy would be to sell it. The property 3 houses away (not as upgraded as ours) is listed for $89,900..

Comments Please,

Thanks,
Justin

Edited: 06/26/2010 at 06:23AM

Jeff Licciardi

Real Estate Investor · New Hampshire

23 posts
11 Influence

Icon_minipost Nov 15 '08, 07:12 PM

I'm not the expert, but isn't there some language in your SONYMA loan about not selling for a few years? Especially if your concessions included the grant that West Seneca gives to first time home buyers (I'm from the Amherst, so I'm familiar with some of the local government/programs).

Why not just keep it as your "primary residence" for a few years and have a family member or friend watch over it? ~1200/month is no joke for helping you get the next property.

Just my thoughts...

Thanks,
Jeff

Edited: 06/26/2010 at 06:23AM

Justin H.

Banker · West Seneca, New York

13 posts
14 Influence
1 Award

Icon_minipost Nov 15 '08, 07:33 PM

SONYMA gave me a 5000 grant to cover most of the closing costs, inspection, they even filled the escrow account for me.

If I sell within 5 years, I pay back the 5000, otherwise it is a gift.

Yes, I am strongly considering having my father in law manage the property for 10 percent of the rents. He does a great job, and I trust him a thousand percent.

Edited: 06/26/2010 at 06:23AM

Jeff Licciardi

Real Estate Investor · New Hampshire

23 posts
11 Influence

Icon_minipost Nov 15 '08, 07:48 PM

Sounds like a no brainer....

I have an Aunt that manages a property for me.. She takes her share, we take ours, AND we take the equity in the property as well.

Look into the the "primary residence" language in your mortgage. There may be some info in their that says you have to live in the property for 5 years, not just own it. However I'm not sure if it is enforceable.

Edited: 06/26/2010 at 06:23AM

Mary Ann Ead

Commercial Real Estate Agent · Douglas, Arizona

18 posts

Icon_minipost Nov 15 '08, 10:14 PM

I bought my first home with a local $5000 grant.(It was in RI) There were similar conditions, I had to live in it and not sell for 5 years in order for the $5000 to not have to be paid back. However, depending on how long I lived there the $5000 payback was prorated. Maybe yours is similar.

Edited: 06/26/2010 at 06:23AM