All Forum Posts by: Megan S.

Newbie question!

If I buy a MF home as an owner occupant with an FHA loan, then plan to turn around and rent all units out (after a given period of time), will I be unable to secure an FHA loan for my next property? Is this why people refinance in the BRRR strategy? Thanks!

Thanks for the feedback, everyone!

@Alan Brown - no worries about ignoring me! (I didn't even notice.) :) I just started working with Kelli in Kingston, too. Re: the family vibe in Saugerties - I agree that it seems great for families, but I'm doubtful that many families would move here and RENT (as opposed to buying).

@Justin Colletti- Yep, I think you're spot on. I do think it's possible to get a property cash flowing here, but just barely, and there's no appreciation guarantee, AND there are some extra costs that I don't have at my Portland, OR rental (snow shoveling/plowing and lawn maintenance are both *required* by the village council here, I've come to learn, and if you don't stay on top of them the village will fine you). 

I could see Saugerties becoming more like Rhinebeck in the future (a place for people with money to retire after living in the city), but that would be the gamble...who knows how long that will take, if it ever happens (and I'm not saying I'd necessarily WANT that to happen to the Saugerties community - it's great right now in part because it hasn't become a "village disneyland").

One thing I'm noticing is that a lot of places currently on the market in Saugerties were bought in the early or mid 2000's, before the crash, at pretty inflated prices. Owners are trying to sell them now for a similar price (or slightly higher) to get their money back, but the numbers really don't work, as you said.

There are a few multi-family properties here I've become aware of that are not yet listed, but none of them are particularly enticing to me (I'm not very interested in C or D properties - I prefer turning things into A properties!), but I'd be happy to share info with anyone else who may be looking here.

@Tom Ham - My fiancé and I just moved to Saugerties. We'll be here for a few months, or longer if I find a house to BRRR. Want to grab coffee sometime?

Wow, thanks for your (strong) opinions, everyone! For some reason this thread got posted twice and I missed your comments until now. Ok, let’s pretend for a minute that, rather than partnering with existing tenants, I know someone who wants to own a house/apartment but doesn’t have a big enough down payment. This is a person I know and trust and would love to partner with. What do you think about the following: I buy a 3-family place for $235k with a traditional loan, put 25% down ($58,750), loan amount = $176,250. My monthly mortgage + taxes + insurance payments would be $1641. Let's say I then offer my new partner the following: You pay me 1/3 of the down payment I just paid the bank (so, about $20k), split all future costs with me (maintenance, repairs, cap ex, mortgage/taxes/insurance, etc.) 50/50, and agree to manage the property. In return, you get 1/3 of the equity in the property and inhabit one of the units. Maybe we create an LLC for the purchase and write up a detailed operating agreement wherein it’s clear that if my partner fails to perform his/her duties, I recoup 100% equity in the house. Result for my partner: He/she gets to stay in a great apartment for $820/month (1/2 mortgage/taxes/insurance payment) which is at least $355/mo less than market rates (probably more). And they get 1/3 of the equity in an appreciating property. Result for me: I get $20k to invest elsewhere, a manager for my OOS property, a 50% reduction in expenses for ongoing maintenance/cap ex, etc.  Thoughts?

What do folks think of the Village of Saugerties? I'm totally charmed by it and don't understand why it's not "hot" (aside from no major employers, and its small size, perhaps). Seems like real estate has been stagnant in Saugerties since 2004-ish. Anyone have thoughts? 

Ok, I'll throw out an idea and see if anyone else has thoughts. :)

I buy the place for $235k with a traditional loan, put 25% down ($58,750), loan amount = $176,250.

My monthly mortgage + taxes + insurance payments would be $1641.

Let's say I then offer the upstairs tenants the following:

You pay me 1/3 of the down payment I just paid the bank (so, about $20k), split all future costs with me (maintenance, repairs, cap ex, mortgage/taxes/interest, etc.) 50/50, and agree to manage the property. In return, you get 1/3 of the equity in the property.

Result for tenants:

The tenants get to stay in a great apartment for $820/month, which is $255/mo less than what they're paying now, and at least $355/mo less than market rates (probably more). And they get 1/3 of the equity in an appreciating property.

Result for me:

I get $20k to invest elsewhere, a manager for my OOS property, a 50% reduction in expenses for ongoing maintenance/cap ex, etc. 

Thoughts?

WHAT?! This sounds amazing! I want to know more (just out of curiosity)!

I do have the cash for the "hefty" down payment, but I'd love to keep half of it to invest elsewhere if there's a way to structure this advantageously for both parties...

Hi BP!

I've been chatting with the owner of a 3-family property interested in selling off-market. He has a set of "wonderful" tenants in one of the units who want to buy the place, too. I just found out today that they were approved for a loan, but they feel the down payment is too hefty for them so they're not planning to move forward.

Now I'm wondering if there might be a way to partner with them on the deal and have it work to the benefit of both of us. Assuming they are upstanding folks whom I'd WANT to partner with (to be determined), does anyone have ideas or suggestions for structuring a partnership with them wherein we co-own the property and both reap the benefits for less money down each (because we'd be splitting the down payment)?

A little more info: I'm interested in this place as an investment (not as a residence for me), and I would be managing it remotely, likely from the opposite coast. So having partners with "feet on the ground" might be helpful?

Thank you for your thoughts!!

Hi BP! I've been chatting with the owner of a 3-family property interested in selling off-market. He has a set of "wonderful" tenants in one of the units who want to buy the place, too. I just found out today that they were approved for a loan, but they feel the down payment is too hefty for them so they're not planning to move forward. Now I'm wondering if there might be a way to partner with them on the deal and have it work to the benefit of both of us. Assuming they are upstanding folks whom I'd WANT to partner with (to be determined), does anyone have ideas or suggestions for structuring a partnership with them wherein we co-own the property and both reap the benefits for less money down each (because we'd be splitting the down payment)? A little more info: I'm interested in this place as an investment (not as a residence for me), and I would be managing it remotely, likely from the opposite coast. So having partners with "feet on the ground" might be helpful? Thoughts? Thank you!!

For what it's worth, my broker is telling me I can get a rate of 4.875% - 5% on a 3-family, with 25% down. For a SF, he quoted me 4.125% some months ago (may have gone up since then) with 20% down.