All Forum Posts by: Peter Nikic

Be careful, it's not allowed in most of these westchester towns. It could cause you a lot more problems than the money you expect to make. Let me know if you want to discuss any properties specifically or message me if you'd like some recommendations? I'm a broker and investor in mid-westchester.

It's easier to pass on the heating expenses to the tenants if they're seperate.

Another thing to think about, is the increase in the value of the property wth the increase in rental income. As a rule of thumb, I look at it as a $1 rent increase = $120 increase in the value of your property (10 times the annual income - this can vary from place to place of course). 

Having said this, a $250 increase in monthly rent = $30,000 increase in the value of your property. Ask yourself, is the potential turnover worth $30,000?

I like to think that 10% is the threshold for motivation of moving, so if you increase more than 10% then tenant has incentive to move. So the question is: if you increase the rent by 25% and the tenant moves out, are you prepared to handle the turnover? Will the apartment need work? If it's a simple turnover, if yes, then it's ok that they move out. But if turnover means a lot of work/expense/time/loss of income - are you prepared to handle it?

For me, if I'm ready and able to handle the extra expense and work, I would always raise it to max. 

I'd keep it, but the $1500 monthly net income des seem low for that many units.

I like to think about having 1/3rd of purchase price in cash. Having said that, you should be able to buy a smaller multi family property of up to $600k.

Knowing this, you can start narrowing down the type and location. If it's multi family, one thing to think about is the number of units your $600k will buy. 

Do you buy a 6 family @ $100k per unit? a 4 family @ $150k per unit? an 8 family @$75k per unit? or some variation of this? My advice is to try to stick between 4-6 units. Less than 4 puts you in a riskier position should one of your tenants decide not to pay their rent and more than 6 means that it may not be a good area which could mean more vacancies. 

Good luck, don't hesitate to reach out with any specific questions. 

I wouldn't say zero, my first investment was a 1BR condo. Over 30 years ago, as a newlywed, my inlaws gave me and my wife $6000 to buy a car. It was 1987, I was 25, my wife was 20, we lived in the Bronx. I put $1000 down on a new Mazda 323 and the other $5000 as a down payment on the condo in Poughkeepsie NY. 

7 years later, I wound up buying a 21 family 5 story walk-up bldg in the Bronx. In these 7 years, I worked a full time job with RR and started a security systems company on my days off and evenings. I started with alarm installations which led to apt bldg intercom systems which allowed me to learn a lot about bldgs and tenanst in general.

It was especially helpful in getting to know the landlords and how they operated. I realized that there was NO reason that I couldn't also become a landlord. So being around the industry, I learned of a 21 unit bldg that was a possibility for me to buy. I had saved $50,000 in these past 7 years and borrowed another $25,000 from family members in order to close. 

I was very busy with the full time job and the intercom business, so there was also the time issue to consider. One night shortly before we closed, my wife said to "honey, you can teach me to manage the bldg so you can keep working your job and the business". I leaned over to her and whispered "that's a great idea, but who's going to teach me to manage it?" I really had no experience other than the 1BR condo that I owned and rented out, but I was confident that I could do it, and I did. One of the hardest things was having to learn and deal with the NYC rent regulations. 

Since I've retired from the RR (4 years ago), my focus has been solely multi family investments. Today I own and manage a total of 65 units in NY and TN and looking to grow over the next few years. I really just want enough properties to support a small staff, so I don't have to work.

any luck finding a lender? 

where in NY? 

Insurance seems a little low (I think someone may have already mentioned that. Otherwise, I think you're good to go. 

At the very least, write down partnership plan (even with family) and ensure that each person does not reneg on their responsiblities. 

It will take work, it will take time, you will have problems (most of them will be in the first year and some may even be big), but don't let it shake you and if you continue with the same enthusiasm that you have now, you will never regret it.

Good luck! feel free to message me with any specific questions.