Investor · Bronx · Member since 2022 · 5 posts · 7 votes
Hi BP! I'm pretty new to REI but I currently own a 3-bed single family in the Bronx that I rent by the room. I put ~7% down on a 30-year conventional loan in 2019 and have been living in the basement there. I'm looking to house hack my first multifam purchase possibly this year. Seeking a place $650-800k with 2-3 units while living in the basement.
I know buying low and rehab/remodeling is the way to go but I don't have much liquid capital left after 5% down and closing costs on an FHA loan. I have ruled out conventional loans since I cannot put down 15% on a 2 fam. I also don't think I can take out a HELOC either because there isn't much tappable equity on my single family just yet and my DTI ratio might be an issue after this purchase. I have no one to borrow from either. In the end, with only $150k cash to work with...what's the best way to go about maximizing cash flow in a financially tight spot?
Developer · NY · Member since 2021 · 131 posts · 106 votes
4y
@Marie Eisley I just sent you a message but give me a call. I just helped a friend of mine purchased a two family townhouse in the South Bronx as a primary residence with only 5% down.
Developer · NY · Member since 2021 · 131 posts · 106 votes
4y
@Marie Eisley I just sent you a message but give me a call. I just helped a friend of mine purchased a two family townhouse in the South Bronx as a primary residence with only 5% down.
Developer · NY · Member since 2021 · 131 posts · 106 votes
4y
@Marie Eisley I just sent you a message but give me a call. I just helped a friend of mine purchased a two family townhouse in the South Bronx as a primary residence with only 5% down.
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
4y
Hey @Marie Eisley - wow really great to hear that you're being creative by househacking and wanting to expand further! I tell everyone something similar when it comes to investing in NYC, it's not the greatest cashflow market (but you already knew that).
Given your circumstances, my recommendation would be to find lenders that can bake in your potential rental income into your approval amount. I'm an agent & investor and work with the lenders that do this, it's more common than you think and popular with the self-employed community (people who get paid a lot in cash/tips and can't show documented income).
With your price criteria, I would recommend focusing in on the southern neighborhoods of Queens/Bronx/Brooklyn. These are the areas that are developing at a moderate pace and can still expect to cashflow as rents increase too.
Shoot me a DM if you'd like to chat further, I'm happy to point you in the right direction and intro you to the lenders or give you their information.