All Forum Posts by: Eric Roth

@Basit Siddiqi Thank you - I will talk to some managers and for now increase the assumption there. If it really is 10% I will probably consider self-managing as I live not too far. And yes for financing I have debt service assumptions included, but I put that below NOI so it doesn't factor into my expense margin calculation.

Hi All,

I'm looking at some 2-3 unit buildings in the Queens, New York area and putting together deal analysis models. I always thought ~50% was the suggested expense margin to estimate, but when actually putting together the model, my expenses are more like 25% of income. I'm worried I am missing something since this is much lower than I expected... I have Management (5%), Taxes, Insurance, and common Utilities (majority of utilities are separately metered), and then $1,000 per unit annually for reserves. Also am underwriting an 8% vacancy rate on income. 

Does anyone either in the same market or in others have some feedback on this? I'd love to hear what expense ratios you are running in your small residential properties, and if you have any suggestions on expenses that I may be underestimating or leaving off.

Thanks!

Eric

Hi Ben & Stephen, I'm in a similar spot to you both. Just moved from Manhattan to Long Island City with my wife about a month ago and am looking for my first deal, likely in Queens, in early 2019. I still need to set up some of the infrastructure Stephen mentioned (CPA, Lawyer, etc.) but have a lender and mortgage pre-approval, and with my day job in commercial real estate lending I have a solid background in deal analysis. I've met with a good investor-friendly broker in our market that may be a good reference for you guys too. Happy to meet up with you guys in the area if you'd like to bounce some ideas off each other!

Is there a different thread or group where these meetups are posted? I’d be interested in showing up every now and then. 

Hi All,

I'm a new investor looking at some small rentals in Queens, NY. Curious if anyone with some experience in that market could chime in on a few budget assumptions that I'm working on. Specifically:

- What is a market rate for property management in this area? I'm looking at a 4 unit rental property now, but also curious on SFR or larger commercial rentals.

- What would you assume for an interest rate on max leverage (can I get 80% LTV)? Loan amount would be $750k-$1mm.

- How would my financing options improve if I used this is a primary residence vs. investment property?

On these notes, I'd be happy to hear from some lenders and property managers in the market if this type of property is something they'd be interested in working on.

Thanks everyone,

Eric

Jamie and John run 915 Construction and are real pros. Their website is below, don’t think I’m supposed to post phone numbers here 

www.915cd.com