All Forum Posts by: Sean Senatore

Thanks. So Hummel...Pretty good idea, moving out, then moving back in the next-door home. Wow...lol. My wife would get a freakin'  kick out of that though...a little stressful but doable, but not 100% guaranteed. The neighboring house DOES in fact have a bigger backyard and side yard. Approx 200-250 sq ft bigger. Their house also has 2 bay windows (upgrade) and a legit fireplace (builder upgrade) Does that make a difference now? Would I have a case since I want more room for my kids to play. lol. 

Ranola, My own mortgage broker is telling me its not possible...but other opinions I'm open too. Maybe you can give him a little teaser of my situation and see if he bites?

Both of these homes can produce nearly $9000 per month in gross rents within 5-9 years. And these homes will hit 875k eventually, since they are 3000sq ft attached monsters. They avail equity I can pull from these in 10 years will be very nice with prices rising. I'm sure I can setup early retirement by pulling the equity and getting a 15 unit out of state. So many options when you have 2 connected homes with a future value of 1.8 million 

Thanks guys

@Joseph Hummel

@Joseph Hummel & @Joseph Ranola

I’m always concerned about writing a long post, I’ll try my best to keep this to the point and quick.

Staten Island, New York purchased home January 2017 for $614,000 with a 3.5% FHA loan and a sellers concession of 15,000. 

The developers built about 75 of these multi level attached 2 family homes.

My neighbor who I’m very friendly with will be selling their house after 28 years of ownership, within a year or two. Their house is a mirror image of mine, exact same set up with a concrete party wall in between both houses.

I’m thinking of creative ways to purchase their house without using a home equity loan or 20-25% down payment for investment property. I understand there’s guidelines. 

I need your help people I have at least one year to work on my finances and my goal.

Am I able to refinance out of my FHA loan, rent out my current property that I'm in, and then get a new 3.5% FHA loan for the adjacent house? If you're wondering the future cost of the home sale will be about $700,000. I'm currently able to rent out my house for 4100 if I wanted to.

I always dreamed of owning two houses right next to each other and in this instance I can take 30% of their basement to make my basement larger and 30% of their backyard to make my backyard larger.

What would the smartest investors in the world do without using their own wads of cash and very little of it. 

@Eric Schultz now this is great advice Drew. You hear this....?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Staten Island.

Purchase price: $599,000
Cash invested: $60,000

FHA 3.5% down with a refinance....Personal residence which where I will rent out the entire house when I scale up eventually. Currently the 1 bedroom rental in the house will bring in gross, about $550,000 over 30 years.

What made you interested in investing in this type of deal?

Mortgage paydown with 1 bedroom rental. Purchased about $22,000 under FMV.

How did you find this deal and how did you negotiate it?

Agent helped me. I used a sellers concession to help with the closing cost. About $14,000 extra we got at the closing table.

How did you finance this deal?

FHA 3.5% down plus sellers concession.

How did you add value to the deal?

Upgraded the rental unit and added a parking space. Raised the rent by 30% immediately. Also made upgrades in the main part of the house where we live. No new kitchen yet, but floors, paint, hardware, appliances, etc.

What was the outcome?

Ongoing. So far the value of the home is about $680,000 without any exterior upgrades.

@Daniel Dietz this is extremely smart and well thought out. Excellent advice. Going commercial aka 5+ units is the way to go and scale quickly imo. Camille’s model is different in the sense that it’s single to 2 family homes only (so it sounds)

Private money is right under our nose, it’s just a matter of asking great questions, going with the flow, while not sounding desperate. And sometimes you’re going to need 3 PML on a deal. If it’s maybe a 25 unit going for 1.9m. $627,000 you’ll need for dp, closing, Renos, and $27k in contingency. Haha.

I think MF repositioning is going to expand and grow as the market flattens out or declines from a home building prospective (US housing starts).

That is what I’m into.

Good luck Camille on finding that money. I wish I had some for you.

-Sean

Any update here @Andrew Frishman? Thanks

 I'm going to check it out my friend. I'll see you on the forums of course. Take care

 Ugh, yes the requirements to get funded are over exaggerated. 2 bids is more then enough. Contractors are super busy nowadays. It does sound very easy to get people suckered into this stuff. But it sounds also so intriguing, that getting 3 people to cough up 5k JUST to try it sounds reasonable. I mean after 20 deals being declined I would run to their office and bulldoze it down. 

Also I see money being added up by numerous declined deals. Earnest Money $1000, Home inspection $300, Appraisal $300, Gas and tolls and mileage on car to for due diligence $150. So it's about $1700 wasted on every deal that is declined. After 7 times, I would for hell give up. Knowing if a deal falls through, you do get your EMD back, if that is stated in contract, YOU are still spending $700 on the other stuff. $700 times 7 times, $5000 wasted.

I have like 2-3 guys that I can do this with. What's $5,000 divided by 3 anyway??....My only worry like everyone else is presenting them with 10 deals, and all 10 being declined, over and over again.  I want to speak with REAL people who HAVE done numerous deals with them and can provide PROOF of those said deals. I cant stand scam companies.