All Forum Posts by: Account Closed

Barbara Goodman I currently live at home in Brooklyn and run a Verizon store in lower Manhattan. I work about 60 hours a week so it's rare to find time to go around looking at houses. It looks like the best option would be for me to occupy a multi family home further out of the city (NJ, Staten Island, Long Island) and take out an FHA loan. By doing this I can afford something around the 300k - 500k area. With only so much capital that I have 3.5% beats 20% by a long shot. I guess I'm just holding myself back from doing it.

Originally posted by @Chad Jarrah:

I agree with @Ryan Dossey...easier said than done to just get up and move away or even commute back and forth while a more reasonably priced flip in a different area is going on, but it definitely makes it more manageable with what you need to put down in regards to cash. 

I know you said it'd be nerve wracking doing a first flip in a town/area you were unfamiliar with but it may be equally as frustrating to be where you are familiar without any way to start on your fist flip. 

Get on Google maps, type in your city and then see what markets there are within 45min to an hour of you that you can manage financially (call RE agents in those areas and ask about the flip market there and property prices). That might give you an idea of a starting point at least. Good luck @Account Closed!

 I was thinking the same thing also. An hour commute wouldn't be the end of the world and there are properties priced less in those areas. I feel like I keep holding myself back and need to just take a leap of faith and do it! In terms of financing, which do you think is the best route if I did not want to occupy the property? 

Thanks, Anthony

Ryan D. Unfortunately I don't, we are all stuck in the big apple. You can see how this is frustrating.

Ryan D. I know, in this area it's very hard. I've been thinking long distance but it's a little nerve racking being this would be my first investment. Any advice?

I also have the same problem. I don't have much to invest anywhere in NYC. Multiplex units start anywhere from 800k and up. Any advice where to go to start investing?

Barbara Goodman do you know of any clubs in particular?

Originally posted by @Carlton Kohler:

You guys are in the right place for information, but you're asking the wrong questions. There's tons of different ways to get started in real estate without having any money. I suggest you start here http://www.biggerpockets.com/real-estate-investing

This should start getting things going, then spend more time browsing and reading. 

Welcome to BP

 I have read through that guide plenty of times. The math still never works out.

For example:

3 Family Property in NYC Metro area - $1,500,000

House hack and take out an FHA loan with 3.5% down (not including closing costs)

Down payment - $52,500 (which I cant come up with)

Mortgage Payments (approx. interest) - $4,221 - not mentioning mortgage insurance 

Occupy one apartment due to rules of FHA Loan and rent the other two for $1700 each

$4221 - $3400 = -$821 cash flow and that's not covering the costs of the house (gas, taxes, water, etc) on top of that 

This is the problem I keep coming across with every property i find even if its a little cheaper. 

Any suggestions how I can turn this into a good investment?

Thanks again !

-Anthony

correction 20%***

Yes I understand hard money loans are the way to go, instead of a conventional loan or 203k loan. However the purchase price in my area starts at 650k+ for just a single family. Most hard money lenders only lend out 80%. Therefore I need to come up with the 20% myself.

650k x 2% = 130k

I wouldn't even know how to come up with the money.

Hello Bigger Pockets Community,

My name is Anthony and I currently live in Brooklyn, NY. I have always been interested in real estate. Even to the point where I received my salesperson license but haven't really perused the sales aspect of it. I am more passionate on investing in any way possible (flip, hold properties, commercial, sublet rentals etc. ). I have been reading the forums to try to get some advice. But I am hitting a wall.

The fact that I am 21 with only 10k saved doesn't really open to many doors for me. In particular, the NYC Metro area is expensive and most people want 20% down for a purchase. I am looking for some type of guidance of where I can start with my current situation. I'm not looking to wait a couple of years and save more because TIME is MONEY! 

Any advice would be greatly appreciated! Thank you in advance!

-Anthony