All Forum Posts by: Travis Hutchinson

BP -  Hope all is well! 

I'm a new investor and I'm tackling my first deal - albeit a big one. I've purchased a 4 family house hack in Bedford Stuyvesant Brooklyn! 

The property needs a pretty thorough renovation. I'm currently out bidding for work to be done. However, I'm receiving such a wide variance in prices (from $500,000 - $1,500,000) and it's hard to know where to spend money to unlock the true value of this property. I have the comps, but when it comes to evaluating the construction process, I'm a fish out of water. However, I'm fairly certain that developers are NOT paying 300/sq ft for high-rental grade renovations. 

It would be great to also speak to someone who either routinely develops in this area, or has gone though this process before.  I'm grateful for any advice that members might have! 

Sincerely,
Travis

@Victor Steffen I was wondering if you purchased that property, and if so, how did your numbers end up in reality relative to your original estimates? 

@Taylor Matthews would love an update on what your experience was like and what the outcome of this was :)

@Eric James  - Thanks for that

@Scott Wolf - I'll PM you -thank you.

@Greg Horowitz - did you ever find a solution for this. I'm facing a similar issue now and I was hoping you could provide insight. 

Hi all,

I was wondering if anyone knew of any lenders that will lend in New York based on the appraised value of a property rather than the purchase price.

It's an off market deal where CoVid forced the seller to move the property at a pretty significant discount. It's a 4 family and I was able to get the seller down to about 400,000. The true value of the property is about 500,000 (based on cap rate and local comps).

I would love to find a lender that would loan at 75% LTV using the appraised value of 500,000, rather than the 400,000. At the 500,000, I would only have to put down roughly 25,000. The DSCR is above 1.75.

Most lenders I've spoken to only operate on the lower of the sales price and appraised price, but I would love to find on that operates on the appraised price regardless of the purchase price.

Any help would be appreciated.

Travis 

Very helpful - I'm going to reach out to the building inspector and planning department. 

Hope all is well and everyone is safe and healthy.

I'm looking at an off-market multifamily property in the City of Poughkeepsie. 

The real value add in the property is that there is a large basement and attic, however, I don't know what the permitting laws are around adding apartments (without changing the external structure). I've done some search and figured out that its R-4, but I don't know how to determine what the city will and won't let me add - the basement (with windows) and attic spaces are quite large (over 2000 sq ft each) - could I get it to a 7 or 8 unit building? 

Is there anyone who has had experience with this or knows how I can find out more information? 

Thank you in advance