All Forum Posts by: Alex Poh

@Tom Sylvester that spreadsheet does look cool!  Would I be able to get a copy as well?

Wow, this is an amazing fix up.  Love house looks infinitely more welcoming afterwards.  Really can see the value you put into this house.

Given how brick and mortar retail has been trending the past few years I'm a bit hesitant to take on a commercial retail space.  Our current space is zone for light manufacturing and given my father's business model we need the space.  However, the route I am taking with the business a brick and mortar location isn't a necessity it's more of a passion project.  i.e. cafe, lounge area, art gallery space, co-working creative space.

I would first like to:

1) Build up a larger client base for my brand online and see the the need for a brick and mortar location

2) Evaluate the trend of brick and mortar retail / coworking space going forward

3) Store up enough cash reserve to accommodate the increase operating expense tied with a commercial retail lease

4) Gain commercial residential experience which in my opinion has less risk of vacancy.  Of course this is a market to market issue as well

Happy to hear your suggestions if I am missing an unseen opportunity or loophole in my thought process.

@Odie Ayaga I share a studio with my father in Manhattan. In case you were wondering, commercial rent is a killer in Manhattan. One of my longer term goals is to own a residential property with ground level commercial space.

Thanks @Craig Wilcox

Yeah, this is one of those types of questions where really I just need to put the work in the figure it out.  I was able to speak to a realtor from the area and told him that I was looking to house hack for investment purposes in NYC.

He advised me to hold off on investing in NYC.  According to him, there has been a lot of downward pressure on rent in NYC and that he's seen 10% decreases in his own rental properties.  On top of that, in his opinion the renters in the neighborhoods I am looking to invest in aren't always timely with their payments.  

I'm leaning towards moving somewhere cheaper and investing long distance so that I'll be in a better cash position once NY Real Estate does correct.

I guess I'll be listening to a lot more bigger pockets money podcasts and reading up on Mr. Mustache!

Hi Everyone!

I want to begin investing in real estate and have two scenarios in mind. I would love for the BP Community to chime in and give me their 2 cents.

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--GOAL--

1) Transform my monthly housing expense to $0 or into an income

2) Begin investing in property

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--BACKGROUND--

I am a 31 year old living in NYC. I have a jewelry company based in Midtown Manhattan by the diamond district. Many of my clients and vendors are located here so I need to live in the area until I create an online retail focused business. 

I currently have a studio that is a 10min bike ride from work. (It's great!)

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--Question--

To reduce my housing costs to $0 or cashflow positive I have come up with two potential scenarios...

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Scenario 1:

Move into a two bedroom apartment in Manhattan and rent the extra bedroom to break even on my monthly living costs.  Invest in real estate by investing Long Distance in a 50k multifamily in Kansas that will be about $200 cash flow positive/month.

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Pros

- Be able to keep a short commute to work

- Live in the heart of Manhattan while paying no rent

- Low cash deposit to begin investing in property

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Cons

- Run the risk of my land lord not allowing AirBnBs (which could be mitigated by upfront communication)

- Investing long distance for my first deal is terrifying

- I won't be able to use an FHA loan on my first property

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Concerns:

Am I opening myself up to too much risk by signing an apartment lease and a mortgage?  

How do I navigate my NY Landlord and an AirBnB rental?

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Scenario 2:

Buy a multifamily in an outer borough of NYC probably in the Bronx, Pelham or Queens.

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Pros

- Be able to use an FHA loan to invest

- Live on the property that I am refurbishing and investing in

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Cons

- Quintiple my commute time (45min to an hour on the train or subway depending on where I invest)

- Most likely partner with someone on the investment rather than own it myself

- Perhaps be buying into a saturated market

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Concerns:

Should I increase my commute by an hour just to get into Real Estate Investing?  The first episode of BP Money Podcast makes this sound like a loud no.

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What other questions or concerns should I be thinking about?  What would you all do in my situation?  I know it comes down to the numbers and valuations, but what price would you put on commuting and peace of mind?

Looking forward to what the think tank that is BP comes up with!

@Pierre A. Thanks!  Would love to hear how you've been able to leverage the resources here on BP to help you with your goals!

@Dmitriy Fomichenko Thanks for the tips!

I've been working my way through the biggerpockets Beginner's Guide.  It's been a great resource for me to navigate my start in this topic.  I got a Bachelor's in Finance so the valuation stuff has been a lot of fun to review.

I also checked out the meet up function on biggerpockets and have already signed up to a cashflow seminar in September and a REIA meeting later this month! Can't wait to meet more like minded people in the area to learn from. Just this post has introduced me to a few already!

@John McSherry Thanks for the warm welcome John!

Flipping is definitely something on my mind.  I would like to build up my chops with a live in rehab first before moving onto house flipping.  

I will definitely get in touch with you once I have a bit more experience and have experience closing a few deals.

Do you specialize in a particular neighborhood in NYC?