All Forum Posts by: Bob Milen

Hey all,

I currently own a 6 family in Astoria, NY. Currently, the apartments are setup in a 2br/1bth railroad style (think 5 really long rooms one after another). I have notice some owners across the street converting to 12 family. Most are split into a studio/1br combination. I asked a gentlman across the street who has 2 converted 12 family building on the block. He says, "DONT DO IT!" I'm not sure if he means well or just hiding something.

The upside: rent increase. value goes up based on rent multiple.
The downside: fixed cost to convert (fire stairs in the front), +1kitchen/+1bath, moving water pipes, gas lines,
time - can't kick people out and say "hey, im going to cut your apt in half" - need to be done when people mov out gradually, variable expense (heating oil/water bill/repairs), insurance, etc.

I need to obviously run the numbers but what are your thoughts? Does someone have an idea of tax implications of converting? Do i need a permit to move water/sewer/gas lines in the apt? is there a resource out there that would help in terms NYC legal/code?

Lynn,

Thanks for your advice. I guess I forgot to clarify, the building pays for the mortgage with has plenty left over after expenses from both assets. This is why the idea of putting the additional money from the building toward to mortgage makes sense. However, as any landlord knows, there are always unexpected expenses that come up.

I assume that the no show income refi would be under very onerous terms. Can you confirm they are relatively competitive to market rate? Do know any providers that provide this service in NY?

Finally, I have thought about the selling process however, I would never tell my mother she should sell the house because interest rates are low. It might make sense from a finance standpoint but there is a lot of sentimental value attached to the house.

Thanks!

Hello all - I have enjoyed the wealth of knowledge associated with this website. I'm in an interesting situation and in need of a creative solution. My father owns a rental unit and a residential property. The rental property was transferred to my brother and I when my father passed away earlier this year. This income property has no debt, generates ~$110k revenue/yr.

The residential property which is in my mother's name has $380k debt with an LTV ~ 45-50%. The interest is very high - 6.8% for 23 years left on a 30 yr. I need to refinance however, the only way I can think of would be having my brother and I co-sign. We each have very stable, well paying day jobs. My mother has never worked, she is a housewife.

I have no problem co-signing however, this limits my future purchases. I currently live at home and would like to buy something in the next 2-3 yrs. With the $380k debt, it would be difficult to find someone that would lend to me correct?

What would you do in my case? refi? or stay with the current mortgage structure but increase payment/faster?

Your advice is appreciated.