All Forum Posts by: James Post

any info in the NY area?

Hey All, Newbie here. I have reading a bunch of strategies and plans from all you fine intelligent investors. It seems to me, that no one is really located/investing in the NYC Market. The prices, plans, & scenarios I have read this far just doesn't seem possible in New York. The taxes out of NYC is the most in the nation. The prices of homes are for more expensive than the rest of the nation. Is it just me? Basically, I'm writing this discussion to see or hear any success stories in the NYC Market. Especially for the Buy and Hold strategies. What areas of NY did you find success in? What strategy did you go? Basic stuff. NY unite! Best wishes to everyone, James

@Zach Davis nailed it! The PMI is true, I look at it as when I'm ready to buy my second property and move out of this one hopefully I can refinance and remove or lower the insurance. That's if my market value increases of course. That's the plan so far, but still exercising other people's strategies like yours so I appreciate the info. Thank you so much!!

Originally posted by @Zach Davis:

FHA is a decent program if the numbers work but don't there are a few things to be aware of. 3.5%-5% down gets you a market rate mortgage but you have mortgage insurance, which is now for the life of the loan. The good news is that they just reduced premium amounts, its now .0085 of the loan amount as the yearly premium. Just make sure that its added in when you run the numbers. They will also take somewhat longer to close, cost marginally more in closing costs, and the property has to meet HUD requirements.

Duplexes are just like SFH except that you can claim the other side as income, with 15%-25% (I can't recall which) removed as a vacancy rate. You don't have to use the income if your personal finances are in order but you can if you are trying to purchase a property that you wouldn't otherwise be able to afford. Triplexes and 4-Plexes are the same except for one weird rule; 85% of current rents (all of the units) have to be able to cover the monthly PITI payment. Its not really a rule that will matter in many purchases but I did have one where the rents were so far under market that it would have ended up requiring a 15% down payment since the total loan amount was restricted by that rule.

Also, you can only have one FHA mortgage at a time, there are some instances where you can get another but they don't apply to most people. Good luck!

  Two questions? 

1. How do you tag someone in the post? :)

2. Zach, do you think a FHA Loan is good for a first time homebuyer/future investor?

Originally posted by @Account Closed:

That should work great for you then. Good luck! 

Kevin, was the FHA Loan just a normal loan or was it called something else. Just asking because from what I read on an FHA Duplex/MultiUnit loan stated they would give you more of a loan due to the reasoning you will have more income because of the other unit to rent. Just wanted to know if there actually are two different types of FHA loans for multi families.

 Excellent. I hardy have any debt and my bills monthly are under $500.00 a month so hopefully I should follow suite. Thank you so much for the info Kev! 

Originally posted by @Ashley Pimsner:

If you are a newbie looking to build your real estate empire then buying a multi unit with an FHA loan is a best way to start/ house hack. The loan only requires 3.5% down and if you can qualify for loan based on your dti's ( debt to income ) ratio then there is no need to have renters in place. Live in unit for two years and then buy another multi unit and owner occupy the new property, rent out your old unit, which ideally gives you positive cash flow each month. You can then hold first multi unit for 3 more years and sell it for no capital gain up to 250k for single, or 500k if married. If you decide to keep first unit longer then when you goto sell you could do a 1031 exchange to defer taxes. This is a great way to start. Use BP calculator to make sure multi unit cash flows when you move out. Good luck!

 See what I don't understand is, how can they want a renter in place if you don't own the house yet therefore you can show a potential tenant the house? Very weird

James here,

Newbie in New York. Unfortunately, the New York market is so tough because prices to purchase homes are so high here. Im into the Rental side of investing, and the prices here in NY do not make it easy for positive cash flow. I feel the best way to achieve my real estate empire would be to purchase Foreclosed homes for a cheaper market. Just wondering what have you guys/girl found the best way to search Foreclosures that give a great amount of information?

James

Hey All,

I am a first time home-buyer and I'm looking to purchase a Multifamily home/Duplex, live in one and rent out the other one to begin my rental real estate empire. I was wondering if anyone has went this route and took advantage of this loan. I would like to know the highs and lows of this loan and personal experience with it. 

Ive done some research, and some say that this type of loan requires you to already have a renter in place and a lease signed? Is this true? 

Thank you!

James

Hey All,

My name is James. I am 29. I reside in the Bronx NY and for the past few months i have been investing in some general knowledge about the rental real estate game. I work for Con Edision, which is really great because it allows me to see many different neighborhoods through New York. I will hopefully be purchasing a 2 family home in September, and do the live in-rent the other one out to start my real estate empire. Just wanted to introduce myself, say hello, and was wondering if anyone else was in the New York real estate world?

Best of luck everyone! I look forward to learning and networking with some of you!

James