All Forum Posts by: Alexander George

What are some of the pointers from a tax and expenses perspective to consider for a married couple that is going to buy a 2 family, with the intention to owner occupy one unit, and build a portfolio over time?

Say you have 20 million to play with... How would you find great deals in NYC? (Think critically about it for a second. Don't just make a joke about having or not having $20M!)

My wife and I are looking to purchase our first duplex / house hack in Patchogue, NY. 

I found a local lender who offered a pretty interesting product (at least from the standard stuff I've seen)

First Time Home Owners

Only 5% Down

NO PMI

3.75% Interest

Income Limits Waived for the Area we are Looking

Property we are looking at is asking $399k but we believe $350 is much more fair. We are willing to meet somewhere in between. The lender told me for about a sal price of $360k, expect closing costs to be around $17k.

Does anyone know about typical closing costs in the Suffolk Long Island area? I feel like that is a little high for a small duplex, at $360k. Am I totally mistaken?

I agree to what Brian is saying. To add, I have been witnessing prices turn a bit. It is very simple really. Many of these new rents in central MA are unprecedented. I've had large NYC investors express their interest in the area, but also would rather wait until they can better grasp metrics such as rental absorption rates, etc. There is still a lacking of jobs in the area. When you run the numbers on a 3 family, it is hard to simply approach it with commonly discussed strategies, such as BRRRR, when everyone seems to think that they're building is worth over 120k per unit. Of course, it all depends on where you are too. In general though, from a sheer high-level observation, I have been noticing all the real estate apps on my phone notify me of "Price Drops" more often than in the past.

 Hey Andrew, I appreciate the input. I would like to meet other on the island that have tried or are doing it. Everyone I've met outside of NY thinks it is insane here, but then folks here think "Oh your taxes are only 17k, not bad!" So it is all perspective. I am also going to start attending some of the BP events here on the island to get a feel for what others are successfully accomplishing on the island. So far, I cannot get the numbers to make sense in various areas I look.

@Brian J Allen should be able to help you.

We feel the same way. We are near Port Jefferson. I work in NYC. I dont see anything attracting the right jobs to the area. Perhaps besides the city. And even then, like you mentioned... 25000 jobs... poof. I tool come from Italian and Greek. The bond to the area is strong and personal. Sometimes we find ourselves reminding each other that "there is life outside of NY" as impossible as that sounds to many I know here. What to do? 🤔

I was listening to the Bigger Pocket Money podcast #60 with @Mindy Jensen @Scott Trench featuring @Gino Barbaro. 

One thing that immediately resonated with me, and as usual shocks the rest of the world, is the mentioning of Gino's property taxes in NY being $27,000. This is how it is on many parts of Long Island too. My parents, who no longer have any kids in school and probably should downsize to be honest, continue to pay 18k for their taxes. My wife and I as newly weds, rent a portion of a family owned home, as we continue to explore our house hacking options. There are obviously many who have been leaving areas like NY for places with a lower cost of living. 

So I ask BP, do you think we are wasting our time looking for BRRRR type deals on Long Island? Are we approaching something that might lack scalability due to the extra NY cost of living burdens?

I have been doing some research for financing options of a duplex on Long Island. NY has the SONYMA program: http://www.nyshcr.org/Topics/Home/Buyers/SONYMA/Lo...  

Is anyone able to lend some insight on these products, such as; what are the terms of occupancy for the borrower? 

The site only says that the borrower must "Occupy the SONYMA-financed home as their permanent residence." However, it does not provide any greater detail.

Did you ever figure this out @Joel Cedano ?