All Forum Posts by: Michael M.

I am currently looking at a multifamily property in the Bronx 3/3/1.

The house is in good structural shape, but was built in the early 1900s.  Though it is in good shape, it has an old pre-war "feel" and has not had the usual flip-style renovations that you find on Zillow.

My questions:

1 - Should the house be priced significantly less than renovated houses of a similar size?

2 - For a non-flipper with no connections or bulk jobs, how much should I look to pay to renovate a 1000 square foot 3 BR apartment in that "flip" style that is all over Zillow (floors, bathrooms, paint, etc)?

Thanks!

I spoke to several tank removal companies.  Almost all of them said that they legally have to do soil testing.  I found one company that said "wellll really.... its up to you if we test.... but if there is a big leak we have to report it.... but we won't report any holes in the tank....."  Seemed like they were willing to look the other way, but even this company said to try do do everything before closing.  Spoke with lawyers, oil companies, and more.  Pretty much everyone said it's not worth the risk.

So what happens with properties like this in NYC?  Do they stay on the market forever?  Do they get bought by people who don't realize what they may be getting into?  Or do they get snatched up cheap by investors who "know a guy"?

Thanks for your replies...  It looks like these things vary a lot state by state with some states demanding testing and other that don't really care.  Looks like NJ is particularly tough.

Does anyone in NYC have any experience with this?  Seller is refusing to allow tank test (apparently 99% of sellers refuse tank test)... 

I went to department of buildings and tank was installed in 1934 with no proof of any updates.  

When I spoke with inspector, he said a lot of people just abandon the tanks and convert to gas, and whatever is underground stays underground and that's it.  However, I called one company about abandonment or removal, and they stated that they legally had to alert DEC if they found evidence of a leak.  Is spoke to the receptionist at another company, and she had no idea what I was talking about.  Is this a law, or is this a company policy?

Found an investment property where everything looks great and seller accepted offer.  Inspector noted that the heating oil tank is underground in the backyard with concrete over it.  He suggested that I get it tested for leaks as the house is old (1915) and we have no way of telling how old the tank is.   The internet makes it seem like underground oil tanks are the end of the world and immediate deal breakers.  Does anyone here have any experience with this?  

I am looking at using a HELOC for the down payment an investment property. I have already identified the perfect property and don't want to lose it... I wish I would have done the HELOC sooner and had it waiting. I have 770+ credit, no late payments ever.

A few questions:

1) How fast can a HELOC go through? Any recommendations for a super quick HELOC?

2) Can/Should I put in an offer on the house before HELOC goes through to let seller know I want the house? I will start my HELOC applications tomorrow.

Thanks

I own a 2 family in the Bronx.  The house 2 doors down from me is for sale.  It is basically the exact same house as mine and would be the ideal second property for many reasons (proximity, size, ability to rent).  

I spoke to a lender and he told me that I could not purchase that house with a conventional 10% down loan even if I plan to move into it (I do plan to move into it) because there is no reason to move into a mirror image of my own home that would satisfy an underwriter.

1) Is that true?  Are there any reasons that would satisfy an underwriter?  My reason is that I am house hacking in  current 2 family and I have 4 roommates in the 1st floor/basement unit (I have the whole finished basement to myself).  I would like to move to an apartment by myself without kicking out paying tenants, but not sure if it should even be mentioned since the basement is not technically a living space, and assuming an underwriter would suggest that I just kick out the roommates if I want my own apartment.

2) Can I legally switch my current apartment into an investment property by having my current roommates sign a formal lease for the apartment (right now we are all informally living together - they are friends of mine)?  This would leave me without a legal apartment in my house.  Could this free me up for a conventional loan even though it's 2 doors down?

Basically, I have enough for a 10% down payment but not 25%, and trying to make it work.  Open to other ways of making it happen also.

Where in the Bronx are you located?  This may play a factor.  I have always had luck with Craigslist and Facebook (Gypsy Housing etc.) and have never used a broker.  I like to be 100% hands on - a broker may be more interested in sealing the deal and collecting his commission than finding you the best tenants.  This is very important - especially when you live in the building with them.  

I bought a nice 3/4/finished basement in the Belmont section of the Bronx back in 2013 for 385K.  To get a similar house in today's market in the Bronx it would cost about 650-700K.  I have been looking at Mt. Vernon and Yonkers on Zillow etc., and it looks like you can get still a good sized 2 fam in decent shape for under 400K, and a nice renovated 2 fam for under 500K...  3 fams under 600K.  Taxes are a bit higher (9K a year vs 3 K a year), but rents for 1, 2, and 3 BRs seem to be the same as in the Bronx.

Do any investors on BP have rental properties in Mt. Vernon or Yonkers?  Are units as easy to fill as in the Bronx, or do you deal with more vacancy?   Any insight on buying second home in Mt. Vernon or Yonkers vs. staying in BX and paying more?

Thanks!

@Bin Chen @Chris Rosenberg Some more details: Turns out the guy who contacted me is actually the seller's agent for the guy next door who is selling his house, and to sell mine would charge a 4% commission.  He says he has multiple offers on that house to demo and build, and says that he can get me 300K over market value so that they can expand their project.  

Upon further research on my end, it seems like the price he suggested is really about 200K over market value, not 300K over (still a great deal).  However, these investors have already had contact with this agent before he spoke with me.  He didn't reveal who the buyers would be.  Should I trust that he has my best interest in mind, or should I be asking for more money or asking more questions since he already has connections with the developer?  He has not been pushy at all, essentially presented me the idea/price I could get and left it at that.

@Bin Chen Yes they are offering more as a demo/ develop.  The house next door is a double lot, and they are already buying that lot, and want mine too.

What you said is generally what I was thinking, just wanted some reassurance before going through the pain of selling, moving, displacing tenants, etc.