All Forum Posts by: Joe Jor
Joe Jor has started 9 posts and replied 111 times.
Post: Commercial vs. Residential Mortgage

- Westchester, NY
- Posts 114
- Votes 49
Nick, there is a third option: a residential investor loan. You'll get higher rates than a primary residence and they will require 25% down. This, however, can be put into an LLC whereas a primary loan risks being called if this is done after the fact.
I think it boils down to what is your primary goal for you and your partners? If it is profitability, which is already challenging in Westchester given the prices, then you want to focus on lower costs.
Joe
Post: Replacing old carpet with Vinyl

- Westchester, NY
- Posts 114
- Votes 49
Jeff that seems very high. I had 925 sqft done in Sept 2020 in Westchester County, NY. For labor, it was $1 / sqft for install + $150 for shoe molding install. I handled the materials from Home Depot which amounted to around $2700; this could vary depending on what plank you selected.
Joe
Post: Why is Lumber so Expensive? (Part 2 - Update)

- Westchester, NY
- Posts 114
- Votes 49
Joe
Post: Home heating- oil vs gas

- Westchester, NY
- Posts 114
- Votes 49
@Kevin Deady: Oil is less desirable on resale. It will probably cost $10k - $20k to convert to gas. Any idea on how many Therms that much oil provided? You can then do an apples to apples comparison.
My situation isn't identical, but for my duplex in Westchester, with an older, less efficient boiler, Nov 2020 - Feb 2021: $1400 (900 Terms). this also includes gas for cooking for 1 unit as the heat isn't separately metered.
For my triplex in Westchester with a ~5 year old, more efficient boiler: $900 (536 Therms).
Also, there is a gas moratorium in Westchester; I don't know if it applies to you since you already have a line and are just expanding service.
Joe
Post: Rent out right away, or renovate?

- Westchester, NY
- Posts 114
- Votes 49
@Wesley Canhedo, Like others have said, it comes down to your goals. Here are my thoughts:
If you do the Reno and then BRRRR it, unless you are going to be net positive on the **Loan**, you will be setting yourself back in terms of timing (i.e. downpayment) to get your next property. In other words, using your numbers, if you are sure the house will appraise for 800 and the reno cost will be <= 180k, they you will end up ahead; if they will cost more than 180k, you will be behind.
You can also rent it out for X years at the higher cashflow, then reno it during a future turnover when you are more stabilized.
Lastly, being this is your first investment, I would recommend waiting on the reno until you see how the place rents out and other learning experiences.
You did not share your numbers, and I don't know the exact taxes in Rye brook, but making some assumptions, my napkin math suggests that you will need to pull in around $4,800 per month to make the $1000 cashflow. $4800 seems high.
Feel free to PM me if you want to chat more.
Best of luck!
Joe
@Adam Melon, another Westchester investor here, key is to get that first deal under your belt. The way I would think about this is not to completely focus on if it is a great deal or not. Rather, while living there, does it reduce or match your current rent?
I might have missed some of the numbers, but the first years cost would be: 7800 (5600 PITI + 2200 Expenses). Income 5350. Thus your cost (i.e. "rent" + hands on education) is 2450. Once you move out, the number only improves.
Joe
Post: Looking for agent in Westchester County, NY

- Westchester, NY
- Posts 114
- Votes 49
Reach out to @Adam Cherko; he is an agent and is currently house hacking in New Rochelle.
Joe
Post: Renovation for one bedroom

- Westchester, NY
- Posts 114
- Votes 49
From the pure math perspective regarding updates for a rental: What is the ROI on these improvements? Will the renter pay a higher price had you tiled the bathroom? If the answer is 'no' then it is probably not a wise move. Certainly it needs to be habitable and nice, so a fresh coat of paint of paint is the right move. Sheetrocking the ceiling will provide no value (almost ever!)
If/When you go to sell, those larger improvements can go to improving the sale price; I am sure @Adam Cherko can comment on that, as it is not my area of expertise. The point being that they don't have to be done now. Perhaps one now and one the next time you turn the apartment. If one will aid in increasing the rent; do that one first.
On a grander scale, not knowing your long term objectives, I would recommend saving that improvement money ($8000?) for your next property, retirement, investment or what ever goals advance your life in the direction you desire.
Just my $0.02
Joe
Post: Renovation for one bedroom

- Westchester, NY
- Posts 114
- Votes 49
@Adam Cherko's spreedsheet is almost exactly what I do. After each project, I review my projections and the actuals and tune my spreadsheet. These iterations help reduced overages and increase accuracy going forward.
@Jonathan Beaumont Be aware there will be some rounding (up) ... for example getting someone to come and put in 1 sheet of drywall will probably be a similar cost to putting in 2 sheets of drywall; the contractor will have to allocate a half day for either job; thus the cost for labor will be similar.
I also agree that the items in the OP need to be fleshed out more. How much drywall or painting needs to be done? Use wall SqFt for better estimation. Dimensions are important. For painting walls, assuming 8ft ceilings, for a 750 sqft apartment your wall sqft could be:
- 1216 sqft: 75ft x 1ft room - Yes an exaggeration - [(2@ 75ft L x 8ft H) + (2@ 1ft L x 8ft H)]
- 864 sqft: 27ft x 27ft room: (4 @ 27ft L x 8ft H)
That is a ~50% difference! This also assumes a single grand room; likely there are interior walls which need to be accounted for. Any molding that needs a different shade of paint? That is added expense. Doors? Window frames? You get the idea; these are just the basics.
Joe
Post: Renovation for one bedroom

- Westchester, NY
- Posts 114
- Votes 49
@Jonathan Beaumont, it depends on if you want to do the project management or just throw it over to a GC? The former will be more affordable. Just some spitball numbers for labor if you have the contacts and aren't going through some mega corp (e.g. CertaPro)
1) Paint: $1000 - $1500
2) Molding $200
3) SheetRock $800 - $1400
4) Tiling $2000+ What exactly is being re-tiled? Just the shower? Whole bathroom?
5) How many lighting fixtures? Assume $150 for 1st and $75 for each additional.
Sent you a connection request; I also invest in New Rochelle; we should meet up and compare notes.
Joe