Fresh Meadows, NY · Member since 2017 · 2 posts · 0 votes
Hello everyone!
I want to know how I can achieve to buy a 3-4 multifamily house in New York City? My purpose is to make it a rental property income. I have in mind a particular location in Queens, but prices for these properties will be at least $1.5Million, which is really intimidating. Currently I am an employee, working to pay off some debts and trying to save for downpayment, but it seems that it will take me forever in my case. Looking forward that my dream will come true. Can somebody please guide me on first steps and other things I need to do? Thank you very much!
Check out the FHA loan, they classify 1-4 units as residential and oftentime you only need to put down 3-5% downpayment. Find a property that the income - expenses (utilities, taxes, insurance, ect) - repair savings (5-10% of income) = positive cashflow. You could possibly have to live in one if it's a government loan, but only for a year. In the case you move out before the year I don't think anything happens, you just should "plan" on doing that.
Hi LIza Romero ! I was like you in a way in wanting to get into multifamily in NY but a family friend convinced me to try out of state. Ended up quitting my job as a financial advisor and he hired me and we do multifamily investments full time. We also run a monthly Meetup in Westbury, NY if you're interested at all. If I can be of any help just let me know and I'll see what I can do. Best of luck!
Check out the FHA loan, they classify 1-4 units as residential and oftentime you only need to put down 3-5% downpayment. Find a property that the income - expenses (utilities, taxes, insurance, ect) - repair savings (5-10% of income) = positive cashflow. You could possibly have to live in one if it's a government loan, but only for a year. In the case you move out before the year I don't think anything happens, you just should "plan" on doing that.
@Liza Romero my name is Frandy Blain and I'm currently in the market as we speak to make my first deal and believe me you don't have to start somewhere expensive in queens we can meet up at a Starbucks and talk on 188th street let me know
@LIza Romero It might be a long-term view but you don't have to get started in Queens. You can find a property in a less expensive area that cash-flows. You'll have 1.) more income, 2.) tenants paying rent to add equity, 3.) the tax benefits of depreciation so you get to keep more of what you make. You can't invest what Uncle Sam takes on April 15th...
As you accumulate equity and save your income you'll have a nice little 1031able (I don't think that's a word) way to get into a higher priced market. Essentially, you'll be using tenants to pay-down the mortgage principal in a "forced-savings-plan" so you can get the 25% down you would need for a conventional investment property.
Or maybe you can go the FHA route if you can come up with $75K and 6 months of reserves. I don't know if the latter is an FHA requirement, but it is prudent.
Thanks everybody for your time and wisdom! I'm still a beginner--- I really have to learn A LOT about real estate. The reason why I desire to start my real estate business in Queens is because of my kids--- education,lifestyle etc, and I don't want to give up my day job-- at least not yet at this time--- which gives us a lot of security. And also, since we are still renting an apartment, I would like to use the multifamily property as our own house, and then most likely tenants to help us in paying off the house. I guess this is what they called buy and hold, if I'm not mistaken. Then if I'm ready, maybe to "expand my wings" outside NY. Any thoughts about this? And any suggestions? Thanks again so much!