All Forum Posts by: Amanda McAvena

Hi Harris, I’m actually going through a similar process with a 2 family I purchased in Brooklyn. I’ve talked to several architects and contractors and am renovating in phases and happy to share more info. Feel free to send me a DM. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

House hacking primary residence in Park Slope Brooklyn

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

I am an agent so I found this deal on the open market.

How did you finance this deal?

Yes, I financed with a trusted lender and was able to negotiate a great rate.

How did you add value to the deal?

I'm in the process of continually renovating and adding value.

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

I am a real estate agent so I represented myself.

I'm a real estate agent in NYC and in the last few weeks I've seen a handful of people decide to move back home to be closer to family. I've also seen people exiting New York for other reasons but they were also already thinking about it, and current events precipitated a change. 

Personally, I'm very interested to see what happens in cities like Austin, Atlanta, and Nashville that provide more space and a lower cost of living vs. NYC. I think Austin in particular will continue to see growth since it's becoming more of a technology hub and is a city I plan on investing in. 

Hi @Miguel Oliviera. Since so few transactions are happening and there really isn't any data we really won't know the outcome of this pandemic until the city starts to re-open and we can see how people are responding. Based on my client conversations and what I'm seeing in the market I do think certain neighborhoods will be less impacted. My landlords that have rentals where their tenants are in the service sectors are definitely impacted. However, the higher-priced rentals in neighborhoods like Brooklyn Heights and Cobble Hill are receiving multiple applications and renting quickly at $5,200 a month. Even in this current environment, people that have the money are still moving. 

There are also many high paying jobs in NYC so I don't think we'll see a huge migration out of the city. I do think people that have been impacted will move to other neighborhoods and will try to find less expensive housing. As far as the eviction bill, it is very challenging at this time to be a landlord, but there are steps everyone can take to decrease risk. Properly screening upfront and ensuring the tenants have a guarantor or sufficient saving is critical. 

I also think there are going to be deals for investors in the next month or two as landlords that have held properties for many years may be ready to exit the market and cash out on their gains. I'll keep you updated once I have more info on how the market is responding. 

@Andrew T. I do love Bed Stuy and just helped a client purchase a property on Jefferson that was close to a 6% Cap. It's a great neighborhood, but I've found it's much more challenging to find good deals since prices are often inflated. However, just this week I've been notified of multiple deals falling through so I do think sellers are going become increasingly motivated.

Hi Mark, it's a good question and I think really depends on your market. I would take a look at the comps to see what sold, and rented, for the highest price and what those layouts looked like. 

If it's still possible to see properties right now in your market I would also connect with a Real Estate agent and go see premium developments and the best properties on the market to get inspiration from those layouts. Even if you don't decide on the full renovation at this time, it could at least provide a plan and blueprint for your long term vision.

This 10 year trend report was just released which I thought would be interesting to buy and hold investors. 

I know Brooklyn is often overlooked as too expensive but I am seeing an opportunity in the market right now. Developers are offering incredible incentives, and landlords that are now dealing with tenant payment issues will likely be more motivated to cash out and sell. 

The average growth rate over the last ten years was 7.5% across Brooklyn. For investors, I think the neighborhoods that have the most potential are--Crown Heights, Windsor Terrace, Gowanus and Greenwood. Overall, are there markets that offer better returns? Yes, and I don't recommend Brooklyn if you want to sell after only holding a short time. However, for those looking for consistency and to diversify their portfolios I think Brooklyn is a great option.

Welcome to Bigger Pockets. I'm also in the NYC area and am analyzing deals both in Brooklyn--smaller condos in the $400-$500K range that could use some updates, and also deals out of state in Austin Texas and Atlanta Georgia. 

The out of state properties definitely have higher cap rates, but the challenge is making the time to go see these and learn the market. 

I'm an agent and investor and I"d be happy to share the excel template I use when analyzing properties. It has both short and long term projections. 

I agree with @Abel Curiel and I think this is a pessimistic view. The data also appears to be national? Real Estate is local and varies widely by zip code and neighborhood. I service the Manhattan and Brooklyn market and if New Yorkers can start to return to work in May then I don't expect much of a decrease in values. There's definitely more negotiability on some new developments right now, but those incentives are likely to go away once the city reopens. 

There's also not enough data yet to accurately show the market response. Only a handful of apartments entered contract these last couple of weeks, so it's too early to guess how and if the market will adjust. Mortgage rates are also still very low and most sellers are going to wait and see what the demand is these next couple of months. I'll keep Bigger Pockets updated once I get more data. 

There are so many courses and learning opportunities available online. Here's a list below of Ivy league Universities offering courses for free. There's even a few that are real estate related.

https://www.classcentral.com/collection/ivy-league-moocs

Also, many local libraries have online systems so you can check out books digitally.