All Forum Posts by: Raphael Abreu

A lot of great suggestions in this post. I actually recommend crafting at least 2-3 offers in one. This all depends on how hot a market is. If you ran a CMA and most properties that fit your subject one, there's a good chance it'll sit in the market for a while. I think finding Properties with high days on the market are a gold mine. I'd do what a couple of the members suggested. Send over your CMA and your first offer with Inspection contingencies, Appraisal contingencies & etc. Then send over an even lower offer in cash or with less contingencies & then maybe send over a 3rd offer with a suggestion of owner financing, lease optioning it or something to that regard with a lower down payment, but with terms that'd benefit you.

Congrats Nate!! I would definitely go with hiring my own attorney in this situation because of the Dual Agency.  In most transactions, buyers tend to have a Real Estate Agent represent them.  In this scenario, the Agent is representing the seller and you at the same time which means he does not have a fiduciary duty to either of you.  I'll be sending you a dm!

I'm 1000% with Abel! My advice would be to not be so fixated on the price point.  In my honest opinion the purpose of House Hacking is not exactly to make you money, but to save you money.  It's great when you're able to break even or cash flow a little in a House Hack, but there are plenty of times & depending on the market in NY where it is not feasible to expect to cash flow.  I like to think of the implication of significantly reducing housing expense when you compare it to renting.  I also like to consider building equity, the Tax benefits and Appreciation.  The Cash flow aren't as relevant as these in my personal opinion!

Condos have a negative connotation and justifiably so.  Buying the wrong condo, in the wrong location with a poor managed Condo association could be an investor's nightmare, but here are some ways you can avoid that & some of the pros of getting into a Condo!

- More affordable! Condos tend to be way less expensive than Single Family and Small Multi-Family.  Your mortgage payment being low is a huge factor in Real Estate investing.

- Market rents are typically pretty high for low priced 1 bd 1 ba Condos.  This makes it very easy to acquire a Condo that generates some cash flow! The price to rent ratios can often times beat those of a Single Family home!

- Less work! When you buy a Condo you are essentially just responsible for the interior part of your apartment. The outside is considered Common space which is covered by all of the owner's HOA fees. There is no fixing gutters, roofs, structural damage, plumbing and etc.

-Buying a Condo in the right Location where there is a high demand and a lack of inventory can mean that your Condo can appreciate an immense amount.  Single Family homes often times beat Condos when it comes to appreciating, but the right Condo in the right area can outpace many single family homes because of its location!

-(Risk Factor) You're going to make mistakes and often times come at a loss when starting as a Real Estate investor.  This could be a great way to mitigate those risks and then progress to a Single Family, then small multi-family & then commercial.

Ultimately, starting out with a condo as an investment can be a great way to start your journey as a Real Estate investor.  There will not be many unforeseen surprises as long as you buy a Condo in the right location and that has a well managed Association with a significant amount in reserves.  Buying a Condo could be the inception of your Real Estate Portfolio!

Hey Richard! I think you ultimately need to embrace that fear & just make your move anyway.  Fear usually comes up when we're getting out of our comfort zones and taking action on events that will change our lives.  I think it's great that you currently own two properties.  There are always going to be risks no matter what. I like to just be very cautious and be as risk averse as possible when going into something! I hope the words of encouragement helped.  I'll be shooting you a dm.

Hey Zachary! There are plenty of virtual Real Estate investing zoom meetups on the meetup app! I'll be sending you a message!

That's awesome Jane!!

I think if you'd be splitting the $500 between you and your girlfriend in the payments every month you'd still end up way better off than you would be if you continued paying rent. You can always live in the property for a year or maybe even 2 making sure you get rid of the PMI so you could go through a different house hack. If you lived in the property for 2 of the last 5 years you'd be exempt from capital gains if you decide to sell, Talk to your CPA to confirm Real Estate tax law before making this sort of financial decision! You could also just hold on to it and rent it out while house hacking another home. You can keep repeating the process over and over. 1031 exchanges can be tough, you have to be committed to reaching all the deadlines, it can be done, but you have to plan everything out and be very quick. Looking at the historical data for appreciation in a neighborhood could give you a really good idea on what the appreciation rate will be.

Hey Paul! I've noticed that certain areas in Long Island have crazy high taxes.  Better price to rent ratios, but very high taxes. I recently made a post where I talked about house hacking in an expensive market which you should totally check out!  I'll be sending you a dm!

Hey Gianni! I think it's quite normal to have buying your first property feel very daunting.  You have to be able to embrace that fear, think logically and be risk averse.  There are a number of ways you can mitigate risk when first starting off.  I recently wrote a post about House Hacking in an expensive market, I think there's a lot of value in it! I'll be shooting you a dm.