All Forum Posts by: Julia Green

@Lee Bell Teaching and unraveling is 99% of what these forums are all about. It’s mind blowing to me when folks fail to realize that. Enlighten us and spread some Christmas cheer instead of stuffing coal in our stockings.

@Mark Gonzalez I'm curious why you didn't opt for a 203k loan? Not only would it have allowed for the reno costs but it would have given you a clear sense of what the ARV and comp rents should be.

@William Kwong

Thanks for posting. Can you please clarify for me why/how your renovation could take so long. It was my understanding that construction for 203k loans had to be completed within 6 months and since this doesn't seem like a streamline 203k you would have had a HUD consultant serving as project manager ensuring the timely completion of the work and the proper permitting.

Also, the contractor doesn't have to specifically be a 203k contractor, they just have to be properly licensed and aware of the draw process. Sounds like your HUD consultant was the failure in this whole process.

Noah, so far the new AirBNB regs have not been instituted and our place is outside of the city limits anyway. However, we have a long term tenant moving in soon so AirBNB is not the current long term strategy.

@Aaron K. exactly my point.  If the comps show that everything else is selling but we cannot because of restricted financing options then we cannot take advantage of the very real appreciation that's happening all around us.  Do we forego that and just live with the cashflow?

@Craig Curelop the hope is that we can continue to invest in more properties.  We bought this place as a forever home with no thought of investing.  Luckily it can cashflow but the exit strategy is where we are failing.  We could take the proceeds from the sale and invest in 2-3 multifamilies an hour away.

@Aaron K. so you would ignore the uncertainty of the sale and just focus on cashflow?  We are assuming that the more it appreciates the harder it will be to sell at market rate.  

Hi Everyone, I know this is a frequently asked question but our situation is a big unique.  

We bought a cool condo in the Boston area almost 3 years ago.  We just moved out of it and are trying to figure out whether to hold it as a rental or sell it.  It's a cool space with lots of character which means it may not be for everyone.  1 bedroom /1 bath loft space.  

The issue is that it is non-conforming so the only financing option is an ARM with 20% down from one local lender.

Currently it generates $2500/month cashflow via AirBNB and will generate $1000/month cashflow with new longterm tenant.  

If we sell within 3 years we get to avoid capital gains taxes and walk away with modest appreciation. If we hold, we get good appreciation and interim cashflow but the property becomes more challenging to sell because of rising downpayment  and interest rates.

It's a very unique property so we think it will take a while to find an interested and qualified buyer. Our other fear is all the trapped equity. If we keep this and pay it off it is unlikely we could do a cashout refi or a HELOC (yes we have researched this and the answer is no), but it would cashflow $2000-$3000/month.

What would you do?

Hi folks,

I was wondering if there is a standard approach to determining the prepaid property tax at closing.  In the past I have paid taxes based on the Tax assessor's evaluation of the property.  However, I recently did a closing where the tax was based on the sale price of the property thus making the payments almost $500/month more.  This was in Massachusetts.  

Hi folks, sorry for the delayed reply. Yes, it is a Coop. His dept is mostly back income tax. He is current on his coop fees which are just over $3K. So those fees along with his mortgage payments put his at well over 60% DTI. I think that is why a cash out refi has been difficult to find. But thanks for the recommendations. I will have him reach out to those local lenders. My advice to him was to sell, pay off all debts and invest some and live comfortably. But he doesn’t not want to disrupt his kids schooling. Thanks for the PMs. I will have him reach out. This is a perfect lesson on why paying off mortgages doesn’t always bring smooth sailing.

Hi all, Hoping someone could help me find a solution for a friend of mine. I have been spreading the good word of real estate investing and recently got into a conversation with an old friend of mine. He is self employed, 2 kids and wife and makes about $75K a year. He is now in a vicious cycle of working like a madman to pay back taxes and coop fees. Well here’s the crazy part: 15 years ago when he moved to NYC he bought his West Village condo cash. It’s probably worth close to 3 million now! He paid $1.2m. He does have a $100K mortgage at 7.5% but has been having a tough time getting a lender to do a refi. He’s paying $3000/month in fees and another $1050 for mortgage. I think that’s nuts and there must be a small bank willing to do a cash out refi on a property like that even with this dept to income ratio in the 60s. Thoughts?