All Forum Posts by: John C.

@Kristen Martin

What is your purpose in doing so?  I know we're on BP and real estate is the sexy thing to do, but at the end of the day, it's just another investment strategy.  You would be trading one strategy for another, without any guarantee that you will make more money after the switch.  In fact, you know you will be losing tens of thousands in taxes right off the bat. 

The property you're looking at should be able to outperform your 401K by a large margin in order to make up for the initial losses.

www.20andout.wordpress.com

@Ray Lai

Wise words.  It's so funny that I've always enjoyed Role playing video games and have always looked at accomplishing life goals and esp money in that way.  I love to "get through missions" and find special "power ups" that make leveling up faster!

So many great responses, and ways of looking at life and money. 

Julie, you are definitely not alone in this.  Whenever I think I'm being too frugal with my money, I think about how much worse it would be to not know the value of money, to spend like there's no tomorrow, or to not have enough money. 

Happy holidays!

$850 + $400 k reno is a lot to risk for potentially $135k profit.  OTOH, $335k potential profit is worthwhile, esp considering how quickly these houses are still being gobbled up, and each setting new records.  However, prices have gone up so much so quickly...

Good luck to you.  Would love to see the final product though!  I'm sure it'll be gorgeous!

Gary, congrats on the awesome job in paying of your SLs so quickly. You're off to a great start. And thinking about REI so soon is also a great way to start off.

Yes, it'll be impossible to invest in NYC with that money and the typical starting salary.  And house hacking or buying a multi family to rent out upstate will likely not cash flow enough to make the long distance management worth your while.

You're off to a great start already.  I say take your time, read and research some more while saving up more money.  There's no hurry.  Your first property needs to be the right property, otherwise you'll have a tough time buying your second property, and third...

Who knows? Maybe a couple years from now, you'll discover that you can make more money outside of REI.

There should be apts in 2 family homes in your range in the neighborhoods you mentioned.  

hi Doris,

It would help if you give some more details, such as price range and a more specific location.  Queens prices can vary tremendously from one end of the boro to the other.

3 beds will run anywhere from $1500 in Jamaica to several thousands in LIC.  A house rental will run higher.  

As for buying a house, the range is even larger.  Your best bet would be to call a bank and ask for a preapproval so that you know how much you can spend.  

There should be plenty of leads on Criaglist, Trulia, NYTimes, etc.  Or, pick up one of the booklets from a local real estate office/supermarket.  

thanks Chris.  At this point, more attorneys are of the opinion that the fines follow the property and I will therefore inherit the liability.  I guess the only thing for the seller to do is pay off the fines before selling.  Even the title company says he won't insure the title while there's fines on it.   

So, good luck to the seller.  Or whoever is ballsy enough to take the property as is

Hello all, 

I've been a reader for years and bought our first investment property in 2011.  

Currently looking to buy a multi family in the Bronx.  It's a gut reno with tons of violations and over $100k in ECB fines.  Seller will amend violations, and contract states house will be delivered free of violations.  However, the fines will still remain.  They name previous owners.  

Will I be responsible for the fines once I close?  I'm getting different answers from my attorney vs other attorneys.  Anybody experience this?

Thanks

welcome.  Best thing you'll ever do for your life/finances.