All Forum Posts by: Andrew Galeano

Would it make sense if i get a family member to cash out refinance $250,000 on a fully pid 1 million dollar house and that i will assume the responsibility of the $1,400 monthly payment that comes with doing that? Has anyone done something similar to that? Curious to hear your ideas!

@Tom S.

Yup thats the issue im running into, coming across a deal and not having the capital to get the deal. How about private lenders?

@Tom S.

Hey Tom, Im a little confused ...

Say I had a sale price at - 1million.

25 units

And i needed 250,000 down payment

Cap Rate of 15%

How would I go about raising that money If i didnt have that ? Would it be possible?

Or would only work for a Value Add situation ?

This is my biggest issue im running into, I just purchased a househack so im living in 1 unit and the other 2 are paying my Mortgage so I dont have much liquid at my dispense and I feel confident in my analysis of a property. Now the only issue is Being able to pay the down payment on a good deal i come across and how i Would work that out with a lender

@Michinori Kaneko nice I know the Area my apartments in Bushwick brooklyn id be open to that brother

@Michinori Kaneko taxes is included in the 3250. Property taxes for Jerseybare High about 700 a month

@Allan Szlafrok whats up Allen! As dar as all expenses you mean Vacancies and repair, cap ex? Yeah nyc is insane right now for that so i definitely see why everyones fleeing lol

@Michinori Kaneko Hey Michinori, No the 350$ doesnt include those expenses, I didnt include those because the basement level where I am supposed to be living at, im unsure on what im going to do to it. See, I travel for work so im on the road 9-10 months out of the year. I was thinking of AirBnB’ing my unit while im not there... still tossing up ideas.... thanks for commenting!

@Mark John its in country village, quiet area... I looked more North and was really thinking about doing a FHA 203K on a property there in west bergen but I was unsure how to go about a 203K and didnt want to overwhelm myself, the neighborhoods are a little rougher but in 10 years those will appreciate probably more than what I have because of the site that journal square has become

Hey whats going? I just wanted to write up and give some #’s on my first deal.

1) Im from NYC so markets for investing here arr insane for someone like me. So I decided to look a little outwards. I ended up in Jersey City, NJ (10 minutes from the Holland tunnel to Manhattan). Here the market is much more favorable for what I was aiming to do which was house hack.

2) The Numbers

I found a 2 family with a fully renovated basement.

Asking Price - 450,000

Purchase price - 429,000

Down payment + closing cost - $29,000

(FHA 3.5% down)

Mortgage - 3,250 all in (Mortgage + Insurance)

I will be responsible for monthly utilities (Water & Gas)

Top floor Unit (Unit 2)- rented at $1,575 2 bedroom 1 Bath

Unit 1 - currently undergoing upgrades to the bathroom and overall minor touchups such as removing the awful 1970’s wall paper throughout the apartment and repainting it with a nice shade of Grey. Also changing light fixtures and electricity outlets throughout. Kitchen is due for a major upgrade but its not essential right now. Unit 2 is renting for $1,575

And is the outdated layout as the unit in repair. So im assuming with the minor touchups and new bathroom I can at least seek $1,600 for Unit 1. Unit 1 also has access to the back yard and im sure if i do some trimming of the grass I can increase the rent further. The kitchen is outdated though but I will try to make it as nice as I can via minor upgrades. (No new appliances or cabinets)

All that being said I believe I will be coming out of pocket about 350$ a month by living in the already newly renovated basement. I know in some parts of the country that may not seem like a deal but living in NYC where 1 bedroom apartments are $1,500 + its a steal for me and a way I figured I can gain massive experience close to markets I know.

I plan on renting out Unit 1 by Feb 1 ( the first day my mortgage is due) I know i can get alot better than 1600 if I fully renovate the kitchen but i want to hold off until the end of the year when the new tennant leaves. Gives me more time to save up some extra cash.

Any comments you guys have or advice would be appreciated!

If anyone wants to see pic of the outdated apartment and the minor repairs im doing Shoot me an email id love to show you pictures

Andrewg32090@gmail(dot)com