Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago, 06/30/2019

User Stats

24
Posts
27
Votes
Greg Miller
  • Rental Property Investor
  • Syracuse, NY
27
Votes |
24
Posts

Package of 4 SFR in Syracuse, NY

Greg Miller
  • Rental Property Investor
  • Syracuse, NY
Posted

Investment Info:

Single-family residence buy & hold investment in Syracuse.

Purchase price: $238,000
Cash invested: $60,000

Just closed a few weeks ago on a package of 4 SFRs in Syracuse, NY. Properties off-market portfolio from an out of state investor. $238,000, all occupied with rents $1050, 1050, 1095, and 1185. Commercial loan 20 year amortization, 10 year fixed rate at 5.36% with a local credit union. Should cash flow immediately, and expecting around $300 per door positive cash flow after some initial repairs and projects. Very excited about this deal! Feel from to PM me for more details about this deal.

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

Great off market opportunity consistent with my investing approach.

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

Off market from agent connection - negotiated through mutual buyer/seller agent brokerage.

How did you finance this deal?

Commercial loan - 20 year amortization, 15 year loan, 10 year fixed 5.36%

How did you add value to the deal?

Immediate repairs, improved local management, review and renew 12 month leases

What was the outcome?

Closed 6/11/19 - still working on the transition plan

Lessons learned? Challenges?

Stay patient - lots of unforeseen roadblocks will present themselves.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Robert Zaccaria, Acropolis Realty - Agent

User Stats

54
Posts
58
Votes
Robin Casper
  • Contractor
  • Syracuse, NY
58
Votes |
54
Posts
Robin Casper
  • Contractor
  • Syracuse, NY
Replied

What is the credit union you used if you don’t mind me asking

User Stats

32
Posts
4
Votes
Jay Dang
  • Contractor
  • 92843, CA - California
4
Votes |
32
Posts
Jay Dang
  • Contractor
  • 92843, CA - California
Replied

sounds like a great deal. Congrads.  Can you elaborate more on the commercial loan.  In new and not clear on what the 20yr, 15yr, and 10yr terms mean.  Thanks

PropStream logo
PropStream
|
Sponsored
Nationwide property data Use our robust, multi-sourced data to find off-market properties and close your next deal.

User Stats

321
Posts
522
Votes
Spencer Cornelia
  • Investor
  • Las Vegas, NV
522
Votes |
321
Posts
Spencer Cornelia
  • Investor
  • Las Vegas, NV
Replied

@Jay Dang "Commercial loan - 20 year amortization, 15 year loan, 10 year fixed 5.36%"

Commercial loan vs residential loan. Commercial is typically used with 5+ unit purchases or when an LLC is used to purchase. In this case, it appears commercial was better as he could wrap 4 different properties into one note.

Amortization is the length of time it takes to completely pay off a loan.  So his monthly payments are based on the loan being completely paid off in 20 years.

15 year loan signifies that there will be a balloon payment at year 15, which means the remaining balance will be due on that day.  This typically means that the investor will have secured another mortgage and will refi into the new mortgage which would pay this current one off.

10 year fixed indicates that the interest rate will be 5.36% for 10 years.  At the end of 10 years, the interest rate will likely change.  I believe at this point it will be based on the current lending situation in the market.

@Greg Miller Looks like a solid buy and hold deal.  Congrats.  Feel free to fill in anywhere above if it wasn't correct.

User Stats

24
Posts
27
Votes
Greg Miller
  • Rental Property Investor
  • Syracuse, NY
27
Votes |
24
Posts
Greg Miller
  • Rental Property Investor
  • Syracuse, NY
Replied

@Spencer Cornelia - you nailed it. After year 10 the rate may adjust to the market (years 11-15 would be fixed at that one time rate adjustment) with a balloon payment after year 15. There is also no prepayment penalty at any time over the course of the loan.

@Robin Casper - the lender is Empower FCU