All Forum Posts by: Patrick Nolan

I’m from Long Island with similar price points and rental laws to NJ. I’ve got some multifam going on Long Island and I’m working on fix n flips in the Hudson valley, as well as new construction spec building. 

My two cents of thought is this: if finding properties is so difficult, you have to get on the other side of the problem and profit from being part of the solution. For me that means creating inventory and become a seller instead of a buyer chasing deals. I’m confident long term holds will present themselves along the way, I just need to focus on what can work in the next 12-24 months. 

Quote from @Jeffrey Smith:

I have a full time job currently that I feel like ive been at too long to quit. I work 12 hour shifts 3 days a week with an early retirement, so i want something to do on the side that will turn into my new job at 40. Would it benefit me to work under someone else now or should i just start slow and keep investing while taking on a few properties. 

LEO? I am in a similar situation without the super early retirement of 20yrs service, done by 40. I’ve got 23 years done at age 42 and I’ve struggled with how to leave the “golden handcuffs” behind. I had a beer with my brother recently and after I laid out my path forward with all the numbers involved, he said “you can’t afford to stay” … pension won’t be worth enough to justify staying in a job that has a pretty hard cap on earnings for a pension that won’t be worth enough to make a difference in my life, let alone the lives of my children. It’s time to fly and create the prosperity I seek or crash and at least know I took my shot. 

@Nancy Bachety

Love what you said about buying property around places you want to be. I’ve just begun doing that with a land buy and development in the Hudson Valley.

Ok if I DM you to pick your brain a little?

@Zachary Bush

I buy all-cash but then take debt out on most property. What are your questions?

I have some rentals of my own and each is in an LLC with its own bank account. I'm about to begin being prop mgmt of a SFH for an investor with a separate company I have established.

How do people handle funds? Do I pay the mortgage for the property owner? How about setting funds aside for vacancy, maintenance and capital expenditures? Do I hold those monies?

Is the lease between my mgmt company and the tenant? Property owner is going to put the property into an LLC but has not yet done so.

I have 8 units on Long Island and I'm taking on management of a SFH rental for someone else. What is the right platform for me?

1st time attendee … Looking forward to seeing you all.

@Noah Bacon

Asking prices on Long Island have not yet been affecting by rising borrowing cost and that’s made nearly everything in multifamily a monthly break-even, at best. I am traditionally a MF buy-and-hold investor but I find myself increasingly interested in fix-n-flips and property management to both amass capital and limit exposure to rising borrowing costs. If I can fix n’ flip a couple houses per year in a HCOL, I’ll be able to put those profits to work on the other side of this challenging time.

I'm at a crossroads in a HCOL (Long Island) and need some feedback. I started by house-hacking my first home that's a two family located in a prime downtown. We owe about $350k with under 20 years left to go at 4.25 and still paying pmi of $355/mo and a current value of about $750k. I moved out of this property with my family to a single fam that we thought would be our forever home but now we are considering one more move. Mortgage balance on that is about $440k with a value of about $800k and nearly 30 years to go on that mortgage with a rate of 3.125. Lastly, I bought a 3 fam in January of this year for $400k in cash and put another $100k into it, intending on this being my first BRRR. (Appraised value will hopefully come in at $650k and the rate I can expect is in the high 4's)

I’ve been talking with two different mortgage bankers and one has advised me to refi out the two fam back to 30 years in order to drop the pmi and increase cash flow and make my application stronger for the 3 fam and for applications for financing on more properties to come. My goal is to run these assets in retirement for income and I don’t plan on selling anything, ever. It goes against my instincts to push the debt out that far when I’ve already got ten years done.

Separately, my wife and I both have w-2 jobs that combine to about $200k/year and we have no problem signing for mortgages with personal recourse.

SCENARIO: I've got a 2 Fam on Long Island that I bought in 2012 with a 203k FHA loan. Purchase price was 315k, 140k improvements ... roughly 460k starting balance down to about 360k now with a rate of 4.25 30 yr fixed. Rent roll is 5200/mo with carry cost of about $3850/mo. (Blind spot on this is I'm STILL paying PMI of about $300/mo)

Local credit union will refi only back to 30 years max LTV of 75 with no cash back and 70 if I want to take cash out. Current value is about 600-700k.

I’m a buy & hold investor looking for long term income and I’d like to try and brrrr property beginning this year. I have plenty of cash available for that. Primary residence is worth about $650k with a mortgage of $425k and monthly carry cost of $4k with 28 years remaining on 30 year loan at 5.25%. I’m in the process of refi for this back to 30 and down to about 3%.

QUESTION: What should I do with the loan on the 2fam? I’d like to refi and I know I can pay down balance with extra money, but should I? I’m 38 years old with a public sector job and can retire and collect my pension at age 55. (Same status for my wife on job/retirement) Adding 8 years back on to the payoff date doesn’t feel right when my ultimate goal is income.