Avengers Assemble...? (FHA 203k Bronx Multifamily Gut Rehab)

[Brian Wong]

INTRO/BACKGROUND:

Hi! My name is Brian and I'm a real estate newbie. Or well, I've been lurking Bigger Pockets as a way to educate myself for a while now and am only starting to dip my toes into the waters of real estate investing. Like others, I'm interested in using low-down-payment loans (i.e FHA) in order to break into the NYC market. And as I've been--and still am--scouring NYC listings every day (brokers/agents, contact me!), I've come to the realization that the use of the 203(k) section is probably the best bet to help someone like me take a big first step forward.

I've been doing a bit of due diligence and have been making a lot of phone calls.
Currently, one listing has caught my attention and it involves the gut rehab of a multifamily townhouse. This is probably the ultimate high-end portion of what the 203(k) was meant for, but it'd be an understatement to say that I'm excited to dive into the process headfirst. 

But first things first--I need to estimate rehab costs for the entire project undertaking before I can even move forward with this daydream of mine. This is not exactly a great time to network in person, so I'm hoping that at least some of you out there will respond to this post. (unless someone can recommend some online meet-ups?)

So right now, I am (hoping this is not solicitation)

LOOKING FOR A TEAM WITH TOWNHOUSE GUT REHAB EXPERIENCE IN NYC (Bronx, 203k, historic experience--added plus):

1. GENERAL CONTRACTOR $$$

2. 203(k) Consultant

3. Architect/Engineer

4. Third-Party Inspection Agency

5. Lawyer

Optional:

6. Surveyor 

7. Energy/Environmental Consultant

8. Historic Preservation Consultant

9. Geotechnical Engineer

10. ADA Consultant

11. Accountant

12. Property Manager/Building Super

13. 203(k) Lender

Feel free to message me (or just respond to the thread and let everyone else know what you have to offer?)

**I'm visiting the place this Sunday (08/02/2020) so please message me ASAP if you're interested so we can walk the building together. I know I should've asked earlier, and it's literally the Thursday before, but let me know if you're available!

TO CLARIFY:

For anyone out there that doesn't have particular 203(k) experience MESSAGE ME ANYWAYS. If the total renovation budget ends up bumping the deal outside of FHA loan limits, I'm considering re-examining this project from a development standpoint, which would obviously require the same group of people (with some private equity and without the 203(k) consultant). And I'd love to make everyone's acquaintance, anyways!

On a slightly related note...

Is there any general consensus on the benefits of electing to use a 421-a tax abatement for newly constructed long-term-holds? In my head, this is really more beneficial to use in outer areas of NYC since market rate rentals in those outer areas might experience higher general vacancy and the property itself probably won't appreciate as much over the next XX years. Or is it generally more applicable as a strategic shorter-term hold since the abatement rate tapers off towards the end of the abatement period...?

THANKS IN ADVANCE!!!

[Paul Welden]

Regarding the 203k Consultant - your selected lender is responsible for selecting the 203k Consultant for the project, according to HUD guidelines (HUD SFH 4000.1). The 203k Consultant sets the scope of work and pricing for the project ... not the contractor.

Regarding the contractor - recommend one with verified 203k experience or one that has been educated/prepared for the 203k, such as a Certified 203k Contractor - 203kContractors.com is the directory for them. After the 203k Consultant completes his/her scope of work with pricing and a Certified 203k Contractor can do it for less, you and the contractor will have to convince the 203k Consultant to lower their pricing. Otherwise, the 203k Consultant's price is prevailing.