All Forum Posts by: Adam K.

@James Post

NYC (Manhattan, especially) is definitely a different animal than the markets than most BP articles/advice focus on. You're not going to find many single family homes at all, let alone any that would cash flow or that you can pick up for less than a few hundred K, unless you go way deep in the outer boroughs or Staten Island. BUT that being said, there are opportunities to house-hack here (which I am currently doing) and there are some interesting multi-families out there in not-terrible areas of Brooklyn (we just bought one and it looks like it will cash flow decently) and Queens and I've recently been scoping out the Bronx, as well. And if you live there, you probably know more than I do.

And as @Matt R. has pointed out, cash flow is just a (small, in my opinion) portion of the calculus in a market like NYC. If you pick the right neighborhoods, the appreciation could skyrocket the value of your property. So many people who bought 15, 20, 30 years ago in the emerging neighborhoods of Manhattan and Brooklyn have become incredibly wealthy just based on that.

And as many others have pointed out, there are always deals. They may not be on the MLS, but depending on the amount of capital you have to work with, they are out there. Good luck!

@Jennifer C.

 Welcome to BP! Congrats on the appreciation. I don't know what the interest rate on your mortgage is, but with rates still around 4% and an interest rate hike probably in our near future, I'd look into a cash-out refinance if your original interest rate is higher than 4%. As far as what to do with that equity, well, I was and still am kind of in the same boat as you! We recently tapped the equity on our first investment property to act as a down payment on a multi-family in Brooklyn, and we are planning to tap the equity on another property soon. Deciding between another multi-family (all the eggs in one basket) or several smaller turnkey properties. Probably a mix of both.

Good luck! Will be curious what you decided to do.

@Kimberly Jones Thanks for the responses --- I'm actually in NOLA now, I spend a fair amount of time here, and my friend does as well. But I do not know it near as well as I'm sure you do and I'll be sure to contact you with any further questions.

And it's technically Hollygrove I guess, but it's really on the border of mid-city and dixon, right across from the Costco just next to I-10. According to all the crime stats, it's actually quite low in that part of the neighborhood, but it's not really important --- I'm pretty sure all the certificates will be redeemed.

@Kimberly Jones Wondering if you could help me with a few questions. A friend and I jumped into this and bought 5 tax certificates (NOT the adjudicated sales deeds), all at 100% ownership interest, 1 vacant lot in Hollygrove that is on a nice block, and 4 houses, all of which from the outside look to be in good condition. They are all worth considerably more than the few hundred we spent on the tax certificates.

So we are assuming that they will all be redeemed and we'll just get the interest as a return. But I guess there's a tiny chance 3 years can pass and then we'd have the opportunity to file an action to get the title (though from reading up on it, that could be a long, difficult process).

1) Civicsource says we don't need to contact the current owners, but should we write them letters anyway?

2) Is there anything else we need to do right now? It seems like 2015 taxes are currently owed on these properties. Do we have to pay that now? It doesn't seem like those were included in the tax sale. If we pay those, then the current owner needs to 'redeem' that amount, as well, correct?

3) The public records were unclear on whether there are mortgages on the properties, but if there are, I have heard that the banks will eventually redeem the property. Is that generally the case?

4) What if the owner sells the property? Couldn't investors just contact the owners and offer to buy the property at a huge discount and then redeem it themselves?

Thanks.

@John Hickey I'd hang onto it, Bed Stuy still has a lot of appreciation in it, I think. I'd just try to pull out the equity through a HELOC or a cash out refinance instead of selling.

@Angel Rosado Welcome! I like to see that you are committed and have strong goals. My best advice is that real estate is a slow and steady way to build wealth - stay patient and keep learning. Don't get discouraged if you can't jump in tomorrow.

I am just starting to research the Bronx, I do think there are some good opportunities there and would love to hear your thoughts on the up-and-coming areas.

@Jillian Johnson If you start typing the @ sign and the person's name, they should pop up under the text box and you can click them and it will tag them automatically. To answer your question, it was in Prospect Lefferts Gardens, and it was a 4-family so we were able to get a traditional residential mortgage. We're just starting out as well, this was our first multi-unit building. Eventually would love to get into bigger and better things but not there yet.

@Anna Hamann If you want to reply to people and have them be alerted, you need to put an "@" sign in front of their name.

@Jillian Johnson It is difficult because it's more expensive, but if you invest in the right places of the city, the appreciation can be incredibly valuable. Yes, it's much more of a risk/a lot of people don't like even considering appreciation in their calculations, but it is a real factor in NYC. A lot of the advice you will see here on the forums and in the blogs is terrific in general but doesn't necessarily apply well to NYC. If you are a cash flow investor, the deals are tougher to come by but still exist, you just have to look further out in Brooklyn, Queens, the Bronx, etc. The multifamily we just acquired in Brooklyn projects conservatively to a 10-12% cash on cash in year 1 with potentially huge appreciation gains.

Good luck!

Welcome @Anna Hamann and @Jillian Johnson - I also recently joined BP and have found it quite helpful. Brooklyn is tougher than a lot of markets but there are deals out here. Good luck!

@Carl C. @Charmaine M. Thanks!