All Forum Posts by: Patrice Penda

 No, you are not.

Cool @Lance Yang. 
Hoboken is such hot market that you'll have no problem to find renters, should you go ahead with that plan.

@Account Closed
Retail: You have a bigger buyer pool.
They'll pay more if they like your property and can afford it.
For them, numbers are far removed from the decision making process.

Hey @Lance Yang
Properties tax are not a function of the usage of the property.
They vary from one town to another and they can vary significantly. My impression  is that relative to house prices, property tax in Hoboken are not too high compared to other towns. But it is just an impression, I never really looked at the data for property tax for Hoboken in detail.

Are the properties you are looking at for rental in Hoboken? Properties don't cash flow in Hoboken. So it doesn't surprise me that you have rented apartments rented for 2k when it doesn't seem to be enough to cover all the expenses.
People have been investing in Hoboken for price appreciation which in the past years have, by far, exceeded cash-flows returns investors made in other places. 

In my opinion, if you are into the buy and hold game, it is best to go for option 2 straight away.

Option 1 takes considering more effort than option 2. It is similar to flipping properties except it is not.
You have more constraints. You have to be able to find repeatedly properties which you will rehab and get all of your cash back and the property will have to cash flow when it is rented. That cycle is a longer cycle than for flip. It is more difficult to find properties whose value you can increased significantly while keeping as a rental, especially in the NY area where properties hardly cashflow. If the property doesn't cash flow, you expose yourself to being in negative equity and losing your asset if the market goes south.

yeah! that is freaking brilliant title but very very deceptive!

In my opinion, given the choice between New construction and Existing property, you usually get better returns with existing properties.

With new constructions, you get the privilege of owning something new, less headache, minimal maintenance expenses in the first years, better energy efficiency. etc.

For all, there is the premium you have to pay for those new constructions over existing houses

Personally when it comes to new constructions, as an investor, I'd rather be on the selling side than the buying side

Hey @Jonathan Bolano
You also forgot Property taxes and Insurance.
If you account for those missing expenses, does it still cashflow?

hey @Kapil Patel
Yes, you can repeat the process every time you buy a primary residence and live in that property for 2 years.
When you move on, you are not subject to capital gain tax up to 250K of gain if you are single and 500k if you are a couple.

hey @Michael Puzzo
In case you are not aware already, Biggerpockets has a podcast, check it out.
Also Check out the following one.
http://www.themichaelblank.com/podcasts/

It is awesome for multifamily investing