All Forum Posts by: Fayezin I.

@Patrick Regan thanks for the pointer. I will look into it...

@Mindy Jensen Good suggestion. I will connect with some agents in the area to get a feel of it. Any guidance with the process of finding good agents in the area will be appreciated

@Aaron Vaughn Sure! I'll get in touch with you via PM

@Crystal Smith You are right. I'll stick to something with manageable work for my first Chicago deal

I am willing to go upto 200k with 40k down for better areas. I am also considering multi-family units that cost 40k total in low income/high crime areas for cash purchase. Repair cost will be additional but not looking to do more than cosmetic repairs. 

Hello BP! I am planning to invest in Chicago multi-family units as I will be moving there soon. My strategy will be to buy cheap properties in cash near schools, do some light renovation and rent it out for cashflow. My budget is 20k to 40k per unit depending on the area. Property will be self-managed. I will stay in the downtown area and work full-time. I will probably hire a local handyman to address regular repairs to the properties. If it becomes too hard to manage then I will consider property management as well.

What are the areas that I should consider that fits my budget? Go west or south? 

Shall I avoid high crime areas? For example, west garfield park seems to have some deals. 

@Michael Lee Thanks for the warm welcome! I will definitely give you a buzz to discuss ideas. 

Hi Daniel,

Not sure about the laws but I've heard of many landlords in the Queens, NYC who is renting out their basement in cash without a lease. Also some people are renting it out via AirBnb. It's a calculated risk and it helps if the tenant is co-operative with your creative ideas. 

Hello Everybody!

I am a software engineer working in wall street and living in Queens. I am looking to start investing in real estate, especially multi-family houses for cashflow and appreciation. 

Like most BP members, I read "Rich Dad, Poor Dad" which got me excited about REI and joined this forum. I have my fiance the thank as she has been pushing me to read books and allow myself to grow intellectually which made me take the first step to read the book. Since then I've kept reading books and spoken to real estate agents for market info and small banks for financing.

I own a 2 bed condo apartment in Queens which has appreciated about 25% in 6 years. This made me realize that this area is growing pretty fast. Given that I know this area pretty well, I am always in the lookout for real estate deals in my area. 

Incidentally, I had a recent water leak in my kitchen while no one was home for days. This incident flooded my apartment and I am in the process of replacing my hardwood floors, getting the walls repaired and repainted due to water damage. I was forced to deal with general contractors and saw their quotes vary anywhere from 30k to 15k for the repairs. Insurance covers the damage but not at these high rates!

Long story short, I found subcontractors from craigslist who can get the job done if I buy materials myself and hire them for their services. I am well on my way to complete the repairs within 6k in total. This unexpected crash course with general contractors made me realize that hiring sub-contractors and buying materials myself is the way to go for REI repairs.

I am saving some money so I can start REI in NYC for cashflow and appreciation. It seems like NYC deals are all about cash purchases (hard money or private money or own money). My strategy will at a very high level would be to focus on residential multi-family homes near good schools (rated 6 or more). Another observation that I've made is that properties are in high demand near places of worship like church, masjids, etc.

It would be interesting to know what strategy REI investors use to invest in Queens and NYC as a whole due to the high demand and inflated prices.

Take care!

@Frank Chin Thanks for clarifying that HELOC does not play into profit

@Eric A. That's fantastic. More money saved! Thank you

Hello BP,

I am considering selling my NYC condo where I have about 180k in equity if I pay off the mortgage. I was going to take a 50k HELOC to renovate the apartment before I put it on the market to get top dollar for the property. If I take out the HELOC, do I pay capital gains tax on the full 180k net profit or 130k because of the HELOC?

My question is whether the HELOC amount be considered for gains tax? If not is it an effective strategy to reduce gains tax?

Thanks in advance!