All Forum Posts by: Abel Curiel

Thats pretty recent. I wouldn't accept this tenant.

 Agreed with @Sandy G. and @Michael Quarles.

Hello @Elias Azo and welcome to the forums!

You are right, better late than never.

I was about 30 when I found BP and wish I'd found it sooner.

Househacking is a great strategy. You will gain acquisition, project management, and property management experience. All will be helpful as you grow yours and your brother's portfolio in the future.

I would recommend 3 things:
1. Set up keyword alerts. You will be notified whenever a topic or area of interest is mentioned in the forums.
2. Attend local meetups. Here you will connect with local investors and RE professionals. 
3. Continue educating yourself. Set up local searches with your realtor or on listing websites. Review all househack/multifamily listings that come on the market so you can get a sense of the inventory. You should also look into Sold properties to see what househack deals are actually trading for.

All the best!

Abel

How recent were these incidents?

If they were over 10-15 years ago, finances checked out, and he has landlord references, I might consider overlooking the incidents.

Hello Nick!

A house hack is a solid way to get started as long as it aligns with your long term goals.
I agree with @Samuel Diouf and @Jackson Ebersole's comments.

You'll want to consider the competitiveness on Long Island. Most properties in liveable or renovated condition receive multiple offers. Many competing offers will come from buyers with cash offers or 30%+ down payments.

Properties that are most appealing to multi-family homebuyers on Long Island are those:
- With newer finishes/recent renovations
- 3+ bedrooms in 1 or more of the units
- located in desirable school districts

To make the numbers work and to find a deal where you may have more room for negotiation, I'd target:
- Properties with 30 days on market (DOM). This is when homeowners on Long Island may be considering price reductions. The average DOM for 2-4 family properties in Nassau this year is about 70 days. In Suffolk, its about 50 days.
- Multifamily properties that need work. Newly renovated properties will sell at, near, or above asking price. Look for homes that scare most homebuyers & factor in your renovation budget when making offers.
- Opportunities with additional income potential. Properties with garages (especially those located near highways and main roads) can generate at least $400/month per garage space. Other properties have ADUs that can bring in roughly $2,000/month in addition to other rental income.

All the best to you on your journey!

 Abel

Welcome to the BP Forums @Adam Fiscal 

Thank you for your service to our country and for sharing your story!

Wishing you continued success!

 Hello Jeff and welcome to the forums!

This is where the BP virtual community comes alive so its great that you're putting yourself out there.

When comparing househack options in multiple markets, I'd recommend using @Jon Schwartz's househack calculator. 

It will help you analyze and compare returns, length of stay/occupation, equity accumulation, rent growth and more. This is also a useful tool when trying to decide between renting, househacking, or purchasing a single-family residence/condo apartment.

NYC househacking is possible but some areas will be more competitive than others. Areas like Williamsburg have small multi-family properties trading at a premium when compared to Bushwick, Bed Stuy, Ridgewood, and surrounding neighborhoods. The rent growth and appreciation in Williamsburg is attractive but the annual returns will likely be lower.

If you decide on NYC, you may want to target househack properties with additional income potential like ADUs, storage and private parking.

All the best!

Abel

@Robin Thornton

That is awesome news! Thanks for the update!

Hello Cody,

Great question!

Streeteasy allows NYC agents & landlords to advertise "no fee" rentals which many like to take advantage of to receive more inquiries, applications, and fill vacancies sooner.

Right now, Streeteasy has 4,567 Brooklyn rentals listed and 3,196 are marketed as "no fee".

In addition to this, section 8, cityfheps, and other rental assistance programs usually pay the broker fee instead of the landlord or tenant paying.

Hope this helps!

Abel

Hello @Jake Ferman and welcome to the forums!

I agree with @Nathan Gesner & @Caleb Brown, let your job help fund your first deal while perhaps searching for a more fulfilling position elsewhere.

1. Should I focus on a market in-state or look elsewhere? -- Right now I'm interested in class A/B suburban markets outside of NYC.

NY can potentially be a good fit for your goal of building equity.

According to Zillow, San Diego is the only major metro area with property value growth higher than NY since last year.

Suburban markets outside of NYC like Long Island and Westchester continue to see price growth and high demand.

That said, NYC's median sale price is about double the national average so speaking with a lender is recommended at this early stage. When speaking with a lender, let them know what you have planned for the next 3-5 years with respect to RE investing. This way, they can do more than just qualify you for deal #1.

2. Going off that, if I were to choose a suburban market, doing CMAs and underwriting deals seems like it'd be a challenge as there's less transaction volume. So would it make sense to focus on bigger markets to start?

CMAs in low volume markets can be challenging especially since Zillow and Realtor.com do not hold all sold data. In areas with a lot of market activity, there will be more comps to choose from but please remember that CMAs also include active listing, under contract and expired data (not just sold data).

Connecting with an agent who specializes in your area(s) of interest could be helpful here.

We use 3 platforms, including our local MLS, to run CMAs. Most investor-friendly agents in any market you choose will have a similar process for accessing all relevant data even in low-activity markets.

3. Would you suggest working with an agent to start, or focus on other marketing channels (driving for dollars, mailers, pre-forclosures, etc.)? -- focusing on too many channels would get overwhelming quickly, but I feel like I'd succeed if I focused on one.

I'd definitely recommend working with an investor-friendly agent. It will help you get educated on the acquisition process, save you time and save you money.

but... Why not both?

While the marketing side would essentially give you another full-time job, it could yield results and bring more options forward.

Your agent can help you source most prospective deals while utilize your own marketing efforts to find potential deals. 

Keep in mind, the best deals usually take several months and sometimes years to convert. If you're sending mailers, this could mean a 5-figure investment just to snag a couple of qualified leads.

An active wholesaler and houseflipper in my market says that newer investors should expect to spend nearly $5,000 on 1,000 mailers for 6 months just to generate 1 quality lead (citing a .1% conversion rate). This is also assuming that you'd have other systems in place to help capture, pre-qualify, and convert the lead (i.e. website, call center, etc.).

Hope this helps!

Abel

Thats right!

And if that weren't enough, the Museum of Moving Art in Astoria usually has a fall exhibit with props from the Exorcist.