I am looking to house hack using a 203K loan in Brooklyn or Bronx. I recently got pre-approved for a 203K loan for 400K (acquisition and repairs). I plan to also use seller concessions to have the seller cover the closing costs. I am only looking for multi families, with a minimum of 4 bedrooms (2 in each unit) in order to cover or significantly reduce the mortgage cost using the rental income. The property has to be fairly close to a train station. I found properties are realtor.com, trulia, and propertyshark that are 350K and below where the numbers make sense but it seems that they are either getting snatched up by investors or buyers who are willing to pay way more than the listing price. Does anyone know any other website or source to find properties at that price range in Brooklyn or Bronx?
Streeteasy, zillow, but won't be too different...
Hi @Donald Jeune . I was in a similar predicament a few months ago. I was approved for the same amount plus the 203K loan. I remember the buyer's agent in East New York asking me to consider getting a loan from a mortgage broker instead to move things along faster as the 203K loan had many stipulations. I told her that I had a lot of concessions from the program I was working with...Neighborhood Housing Services. The deal fell apart after that. Maybe the conventional loan would have been the way to go since the market is hot and speed seems to take priority. I'm sure the experts on BP will give you more info. I'm rooting for you. :-)
Your best bet might be Realtor.com.. From what I've seen and heard from Agents, they have the most up-to-date information on listings on the MLS.
@Adam K. I haven't heard of streeteasy but i'll look into it. Thanks
@Abena Sidibe I did hear from somewhere elsethat sellers do prefer the conventional loan rather than the 203K since the process is faster. Paying a down payment on a conventional loan is way too much in Brooklyn/Bronx/Queens. I'll keep grinding till i find a deal though. Thanks for the encouragement!
@Anthony Espinal Thats real good to know. I'll keep using it then. I'm also going to take real estate agent classes in order to get my license within the next couple of months so that should also help. Thanks for the insight.
Good afternoon Donald,
As @Leon Smith mentioned, Redfin is another popular site among agents. I like that you mentioned you'll keep grinding til you find a deal. Its really tough to find something for that loan amount but its not impossible.
Try to get a hold of a wholesaler in your target areas. They are the first in line when it comes to discovering deals. They will find deals before it hits MLS and the public sites. Usually, sellers are more attracted by the cash buyer but with some persistence anything can happen. I wholesale in Queens, Brooklyn, and The Bronx. Keep me updated on your target areas and maybe we can work something out in the near future.
Best of luck to you!
Thanks for the encouragement and advice. I will definitely look into finding some wholesalers in Bronx.
Get a normal loan and buy a two family so you can add one units market rent to your "income" it helps you purchase more house. 203k doesn't really work here unless you are in direct contact with the owner. Investors snap up those 250-350k all cash so makes it makes it hard for you to compete. But just pull the trigger and buy ten years down the line they will be worth double ENY was just rezoned.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.