All Forum Posts by: Doug Shapiro

Virtual staging helps a ton.  Most of my clients don't have the imagination to picture what a space can be like, so it is always very helpful if a space is physically or virtually staged.  This is especially important in NYC where spaces are very small.  

If a buyer/renter can't picture their furniture items in a space, then they probably won't buy/rent it.  Unstaged spaces always appear smaller than those that are staged. 

Those numbers look really good!  I tend to estimate vacancy higher than 4%.  I would also include real estate broker fees for renting out the unit if you are not doing this yourself.  

If you can invest $5,000 to buy a property and would make that back in the first year then that is truly amazing.  

Let's just say that you break even on this property every year for the next 30 years. Let's also say that the value in 30 years doesn't change and is still 180k.  Its still worth it to invest 5k now in order to get 180k 30 years from now.  

Thanks!

Hi Marvin,

I think it is the perfect time to buy in areas impacted by the L trains shutting down.  It is only temporary (15 months I hope?).  And afterwards there should be more L trains running with newer infrastructure.  

My prediction is that home prices will continue to fall in areas dependent on the L trains until a month or two before they shut down the line - then I think prices will stay low until maybe half a year before the project is completed (there will be light at the end of the tunnel, pun intended), at which point prices will rise to all time highs.  

The risk is that the project is significantly delayed, and you would have to eat the costs of holding and living there, or holding and renting for reduced rent.  

Best time to buy is in the winter so keep your eyes on the market now so you can snag a good deal between October - February. 

Thanks!

Hello,

You should get several quotes from multiple insurance companies.  Also, I have no affiliation to any insurance company, but am impressed with lemonade insurance - you should be able to get that quote online.  

I would also recommend that you have verbiage in any future rental lease that says the renter will get renters insurance.  

Thanks

Hello All, 

I recently started a real estate brokerage in NYC (primarily Manhattan and Brooklyn).  Would love to connect with some experienced agents or anyone else with a lot of real estate experience who I can come to for advice from time to time.  I of course will reciprocate the best that I can. 

Thanks!

Hi @Chaunna Henry!  I live in the city and am also an investor.  My advice to you is to get to know the real estate market really really well.  Every morning I scour all of the new listings in NYC (you can do this by signing up for the Streeteasy hotsales email notifications).  And go to open houses in your free time.  You will get a very good feel for different neighborhoods and eventually you'll see what is a good deal.  

This is a perfect example of how you can "afford" a place right in the city, and still have great upside for renting it out: https://streeteasy.com/building/350-east-30-street-new_york/3k.  This unit owner bought the condo as a studio, and then converted it to a 2 bedroom unit.  Finding opportunities like this is very difficult, but they will come up.  

Hello All! I am buying a multifamily in Brooklyn and wanted to know how much more home owners insurance costs if I purchase the property under an LLC as opposed to under my own name. I've already received some quotes from insurance companies if I purchase under my own name, but am struggling a bit to get that info if I were to purchase under an LLC. Does anyone know? I will find out on Monday for sure, but really wanted to get an answer ASAP. Thank you in advance!

A 12% return sounds like a solid option, especially because it will generate some cash flow for you.  I guess the question you should be asking is whether you would be able to get a higher return than 12% if you were to go with option 2. 

Jay

Hi George,

The misspellings and formatting issues wouldn't bother me much, as long as it was detailed and clear.  You're not hiring the contractor for their ability to craft eloquent estimates.  As long as they have good references and you've seen the quality of their work, then you should be okay.  

In my personal experience, I've used contractors at both ends of the spectrum in terms of the quality of quotes they've provided.  One of my contractors provides contracts/quotes that look amazing, complete with a calendar of work milestones, as well as high-quality prints for cabinet/appliance/flooring options.  And their work is good as well.  

I use another contractor that provides quotes that have many misspellings and that look sketchy, just by appearance. They also misspell my name almost every email exchange and/or quote: "Jaye", "Jayh", "Jae", etc.  However, their work is excellent.  

-Jay

Hi Kevin,

I think it is best if the tenant was present. 

As a best practice - you should do a property inspection when the tenant first moves in, and go from room to room and mark the condition of everything, and if there are any scratches, dents, etc. anywhere in and around the property.  Also take pictures so that there is proof of the original condition.  

Then when the tenant moves, you should do the same inspection (with tenant present) and document everything that has broken or has been damaged.  And take pictures.  Anything beyond normal wear and tear should be paid for by the tenant, taken out of their security deposit.  The cost of repairs should be documented with proof of receipt for the work done.

Not sure this info helps you currently - but hopefully it helps you moving forward.

Jay