All Forum Posts by: Scott Wolf

@Dario Miles, @Anthony Wick is 100% right.  If you went to sell the condo, you couldn't even 1031 into anything, since you're using it for personal use, and not as a rental.

If you do choose to sell, if you're single, the IRS has an exemption of $250k or if you're married $500k.  So that money will go into your account, without the IRS taxing that amount.  Anything above those amounts would be taxed.

Welcome @Jeremy Levine!  You should post what you're looking for in the Philadelphia forums, you'll find more people that are following there.  

https://www.biggerpockets.com/forums/742-philadelphia-real-estate-forum

I'm always happy to talk shop as well.  Good luck!

@Conor Duffin have you looked at the numbers?  A hard money lender with private money on top will be 100% financing at best case scenario 8% interest.  Can the property sustain itself with that kind of debt burden?  And once you refi, will you be using your cash reserves to get rid of the private lender as well?

So if we take my numbers above, if the $500K is 100% financing at 8%, that's 40k per year for interest only. Your rent roll ($3,700 per month) would Gross $44,400. Leaving $4,400 to cover taxes, insurance, reserves, maintenance etc. And we can assume the taxes are well above that $4,400 being in Westchester, so not sure how this property is a cash cow with a HML involved. If I'm missing something, please let me know.

@Amy Zemser credit card companies also may do personal loans.  I get a notification from Amex about that every time I try to look at my monthly statement.

 Yes, but you'll pay a premium for that.  @jason lee makes great points about the differences.

@J Usmonov, while @Calvin Thomas is not wrong in any way shape or form, let me elaborate for him.  Most co-ops do not allow any significant subletting arrangement.  Those that do, are price accordingly, and profits can be slim, with no upside like condos may have with appreciation in New York.

You'll need to 1) find out if they can be rented out, and then 2) run the numbers and see if they make sense. Your best bet is probably finding another avenue to get into investment real estate, or if you can find an apartment where you can rent a room or two to tenants, then it may make more sense if you need to be there for a 9-5 job, but probably will not cash-flow.

@Elena Livins depending on what the closing costs are, many banks will let you roll in points etc.  But because you're using a mortgage broker in better.com, I'm not sure they will allow any points rolled into the loan.  I'd also check the banks you got quotes from, because if you don't have any local banks on the list, they may be better options with lower fees.

Happy to chat further if you'd like to send me a PM.

Hi Elena,

With FHA financing, this sounds like it can be doable, even with a MF, where you can rent out the other units. Do you think your job will continue to be remote, or will you need to commute into Manhattan going forward?

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