I am eager to get into real estate investing but currently planning my exit strategy from a previous purchase.
Firstly: In 2009, my wife and I purchased a coop for $90k. Seemed okay at the time however with the downturn of the market, this was probably too high. We got $8k back as first time homeowners from IRS/Govt incentive program which we added to our renovations. We spent $14k in this one bedroom unit. We over spent for the area. Yes another bad choice. However things got worse.
Years later we found out in more detail about the make-up of the building. Unbeknownst to us nearly 40% of the building is owned by the "Sponsor" which rents out their units. Our attorney did not alert us to this factor which would have greatly influenced our purchase. Fast forward to 2017 it has become the biggest hassle dealing with other non-owner tenants. In our attempt to sell this property, no banks are willing to provide loans to purchase within the building. They cited unstable building financials and high renters %. Ultimately we have it rented out and will be looking to sell this property in 2019. We hope to not take a lose. (Any Westchester Realtors / Real estate agents here whom can help me in this future sale, likely to be a cash only?)
Secondly: So with the frenzy in the SFH NY market, my wife and I purchased a 1960 Colonial in the end of 2017 (an estate sale) at $350k with 3/1.5 1700 SF + 450 SF finished basement and garage. We renovated the kitchen and both bathrooms for $37k. Area exceeds $500k values for similar homes in an un-renovated state. My plan is to refinance and pull some money out for a down payment on a multi-family property (possibly 3 or 4-family). I also already have a $30K LOC for additional down payment or renovation cost. (I am not taking the coop sale profits into consideration.) I am looking to do a buy and hold strategy.
BP has been immensely helpful in weeding out information I need and helping me to figure out what I want to do. Any insight or comments I happily welcome.
Thank you in advance
Hi Jared, coop sounds like it was an unfortunate situation. Did you look into Chase to see if they do financing in that building? They are the largest lenders for coops in NY. Financials usually are very important.
Where did you guys purchase the single family?
Thank you for responding @Ceasar Rosas . I will private message you. Would love to connect also.
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