Hunting for a 3-4 family investment in Bed Stuy & Bushwick
Hello BP!
I've been hunting, but finding a good 3-4 unit investment property in the Bed-Stuy and Bushwick areas in Brooklyn has proven to be an extremely difficult task!
Why Bedford-Stuyvesant (BedStuy) and Bushwick: I prefer properties in these locations for ease of management. These neighborhoods are also very desirable; and still have room for very good appreciation (Bushwick more than Bed Stuy).
I don't want to rely solely on appreciation; so I'm searching for a property that cash flows. Although the rental market is very strong in these neighborhoods, the gross rents I've been seeing for some places can not cover PITI + all expenses - let alone cash flow.
In speaking with a rep from Quicken Loans (which has my existing loan), I was advised that the max loan I could obtain for a 3-unit property is only $967K for a $1.35m purchase (roughly - with 30% down). That loan amount is likely specific to my case (existing $425K mortage with QL, credit, etc). I have an existing investment property I purchased about 10 years ago in Bed-Stuy. But as most investors familiar with these areas or similarly expensive markets -- this may not always be enough for a 3 family in a good location (avoiding the L train line). My existing property is likely valued at $1.3m currently; so I am thinking of using an equity loan to help fund a new property.
I heard a few people in the forums suggest Cypress Hills and East New York around the areas where the proposed re-zoning is supposed to occur. I am starting to consider those areas as they offer better value and will have more appreciation upswing. However, they are a little far from up-and-coming and have safety issues.
I do not have the skills, a team, any experience, or time to take on a flip / total reno.
I will be joining 1 or 2 REI groups to gain more knowledge and network.
Let me know your thoughts about any of the above. Thank you.