All Forum Posts by: Brian P.

Nicholas, Shai and Morris... Thank you so much for your input, I really do appreciate it. While I wouldn't mind house hacking for the first year, the idea is for the property to be generating positive cash flow from month 1.

-Nicholas: My goal is to buy for cash flow as well. From the sound of it it doesn't look like this property will (BP buy and hold analysis said the same)

-Shai: I don't mind house hacking for the first year (really prefer not to though). After the first year I definitely will move, hoping that the value will increase enough (speculation) to try a pseudo BRRRR strategy. Nothing wrong with Bergan Beach though, I happen to really like the neighborhood.

-Moris: Thank you for clarifying the 50% rule. I would really appreciate it if you can take a look at the numbers, I'll be reaching out in a private message.

Again, thanks for the help guys!

Hi Everyone,

I'm just about ready to take the plunge into my first investment property! I'm looking for some help in analyzing. I'm looking for a stable cash-flowing rental property. I plugged the numbers in the "Buy and Hold Analysis" tool  and it's giving me a -5% Cash on Cash return. Here's a little backdrop on the first property I'm considering:

-I'm a first time home buyer

-It's located in Bergan Beach in Brooklyn, NY

-Seller will let go of the property for 800k (OK price, nothing special)

-Will take a 30 year mortgage with 10% down

-3 family house, collecting 4700 a month (average between 3 units)

-There's not much room to improve the value of the home or raise rents

- House was built in the mid 1900's, is in good condition and made from brick

-I need some assistance making assumptions of vacancy rate (tenant laws in NY are incredibly not in favor of landlords) Capex and repairs in Brooklyn. Does the 50% rule loose validity in areas where rents are significantly higher then the national average?

I'd really appreciate if anyone can lend me a helping hand.

Thanks again!