All Forum Posts by: Ahmed Saad

I'm interested in discussing short term rental (STR) opportunities in NYC; specifically Brooklyn and Queens. Do you operate a STR or have knowledge of the subject? I would love to learn more about your experiences. Anyone who is an experienced operator but may not have the properties or capital to start doing it themselves.

In regards to the cost; your range is going to be wide regardless of what you do until you determine your scope of work. First, do you have gas or oil.  If oil, will you replace with like-kind or convert to gas? If gas will you keep one heater for the building or separate into 3 different units? If you want to separate, you need to choose between 3 separate gas boilers (and think of water heaters) or 3 split unit HVAC systems.

Sorry if this response isn't what you had in mind. I guess I just wanted to let you know there are a lot of options. Cheapest option hands-down would be to replace your current boiler with a new one of the same fuel-type and doing it without filing DOB permits/inspections (which of course I am not saying you should do, just that it affects the price significantly). Bear in mind that replacing the old boiler and getting it inspected will likely mean upgrading your boiler room and possibly other parts of your basement; gas lines (if gas boiler), oil tank (if oil boiler), fireproof sheetrock, self-closing doors, ventilation access, and drainage line.

Hi @Robyn Henderson,

What your tenant does is a regular part of maintaining the boiler system in old buildings that have steam heat. Although it's recommended to do it weekly, skipping a week or 2 shouldn't cause a major issue UNLESS you have another issue going on. I agree that 60 years is a very long time for a boiler, however as the saying goes, "they don't build 'em like they used to." Here are a few thoughts in no particular order.

1. Do not do ANYTHING to the boiler if it's working now. Start pricing your options around March/April after heating season is over. If it ain't broke, don't fix it.

2. As a 3 family you have a lot of flexibility in what you can do with the heating system. Gas vs oil. Steam vs hot water. If you have equity in the property and want to upgrade the property to increase rents you could install separate heating unit for each apartment. That will reduce your operating expenses too. It's extremely popular now to forgo boilers altogether and install dual-purpose HVAC units that both provide cool and hot air. Just make sure the units are properly insulated.

3. Check your PM for an addition concern.

-Ahmed

@Luke Carl I think being so close to the closing can work for you to get a reduction in price. Seller would likely hate to have been so close to a sale and it fizzle at the last moment. They've probably already made the "after I close plans." If there's a seller's agent involved they can try to salvage the deal too if they're any good. Does the contract state anything about the tenant being current with rent (arrears)? 

I think you'll still have to handle the tenant. That said you have the ancient tools of the carrot and the stick (cash for keys VS eviction). The former would likely be the preferable route. However, start the eviction proceedings ASAP so you don't waste precious time.

Hi @Kase Knochenhauer,

Thank you for all the helpful tips and encouragement! I’ll give it a try with the 2 sources you recommended. Do you mind if I pm you some more detailed questions later? Thank you!

-Ahmed

I've come to a point in my journey where I absolutely need administrative help. I have piles of paper, tons of emails, insurance documents here, leases there, and more projects on the way. I know that in order to grow, I need to bring on someone who can be my right-hand. Ideally, the person I am looking to hire can

• -set up an organized paper filing system and set up a digital office with cloud-based document storage
• -keep a calendar, help me move forward and not get bogged down with minutiae
• -multitask between the different businesses and properties
• -has previous administrative experience in real estate
• -and most importantly: Get. It. Done.

I would really like to hear from other investors that have passed the point I'm currently at. Currently I have 5 properties in my portfolio with more than 20 units, along with several other businesses that require moderate but organized paperwork.

How did you find someone? I'm considering looking on upwork. What other sources would you recommend? (No craigslist please) How did you manage compensation? What about office space? I'm sure there's a lot I'm missing. If you have a story, I want to hear it!

It's not going to be cheap. If you want to manage the project yourself, you'll have to reach out to an iron-worker/welding company. They'll need DOB permits and inspections, possibly the fire department too. That's not the sort of thing you want to do without a permit/licensed installer. 

Also an extra tip: when they remove the old one you will have holes that will need to be mortared (if brick building). If you leave them exposed they will serve as entries for water. 

You'll likely want to have the expertise of an exterior contractor who can handle the whole job. There are a lot of them but you want to make sure you have a 5 year warranty because exterior defects tend to take some time to manifest themselves.

Also, it will be more costly if it's a rear fire-escape instead of the front facade of the building.

Hi Selena,

It is very difficult to house hack in Brooklyn, but it’s possible. It all depends on how much you’re willing to sacrifice. Are you willing to have X number of roommates? Are you willing to live in a basement? Are you willing to do short term rentals of a room for extra cash? Are you willing to buy/live in an unsafe area? I recently saw a property that had a several illegal units in a basement. If ever there were an accident or a fire for instance, the owner would be criminally liable. I say these things not to exaggerate or to frustrate you, but to help you think about what you’re willing to compromise in order to pursue your goals. Speaking of... are yours well S.M.A.R.T.? 

@Greg H. You check out the roof when you're looking at the property and the top floor apartments/hallways. Look for soft spots, cracks, holes. Stains or sagging paint in the hallway. Ultimately you get it during the inspection but you should ascertain the condition early on.

Good morning! I can virtually assure you there will always be someone with money who wants to lend it out. Take the time to stabilize your base. Pay off personal debt, rebuild credit, establish relationships with those that can assist you/partner with you when your credit is repaired. I finished grad school with $25K in credit card debt and it was very tough to pay off. Fortunately, someone very wise helped me with a smart plan and it worked.

Ideally, once you have some more experience you'll have the knowledge of how to leverage a 50K loan into a solid investment.

Good luck!