All Forum Posts by: Ahmed Saad

I hired Sonny from Dawn Restoration for several jobs and am happy with the service and the quality of work.

Here's how I look at it...

1. Speak to a landlord tenant attorney. Everything is going to depend on the law in your area. In NY courts are closed and you can't really evict anyone. How long will it take you to evict them legally? It can't be less than 2 months; Trump ordered no evictions till at least 1/1/21 How much longer till a court can grant your eviction and order the sheriff to remove the tenant? 

2. Now do a cost-benefit analysis. How much do you have in security?  If your tenant owes you $1800 a month in rent but they stop paying and can't be forced to move, you will be out Nov rent, Dec rent, Jan rent at the minimum which is $5400. Plus the cost of an attorney, PLUS the cost of whatever damage they will inflict. I'd wager something to the tune of $10,000 is what you would lose. That's just the money side. Now to make it worse...

It's fair to assume a housing court judge will not want to evict anyone in winter. However, you as the owner have an obligation to make sure heat/hot water is working but all the while they can break things and making formal complaints about the condition of the home that will be documented against you.

Unfortunately you will likely have to eat some sh*t pie and let them leave. Play it nice but make sure that you tell them to leave the property in good condition for them to get their security back. To be honest, they sound like tenants you wouldn't want to keep anyway. With some minor refreshing you can get it re-rented and you'd lose less and have less headache than fighting the current tenant. Welcome to the REAL experience of being a landlord!

P.S. Don't let the pipes freeze!

Hi @Ali Ebrahimi, did you ever get any traction with the foreclosure/auction thing?

I'm struggling to understand the connection between government aid and house hacking. However, if you have the capital to invest in Brooklyn; it will be likely a better return long term than most anywhere else. If you also have the ability to establish residency in Florida, that too is something you should try to get. 

Hi Randy,

The short answer to your post is: Don't do it / Can't do it. Your choice.

Long answer: First you need to see if you have the zoning. Second, you would need the building vacant. I'm sure there's a clause somewhere in your loan that will negatively affect you should you try to do this. Third, it will be cost prohibitive bc you would need to upgrade the building to current codes including but not limited to: ADA compliance (think elevator), fire escape front and rear of building, and sprinkler system.

You can however, investigate 2 other options. If you have unused FAR you can build above the roof or back in the backyard. Instead of changing the C of O, you would have larger units. The other option is can you re-arrange the space of the apartments to include more beds/baths. I am in the midst of altering a large floor-thru 1 bedroom apartment into a 3 bed/1ba apartment.

You very much need an architect on your side to assist you with possibilities and sobering realities (just like mine did!) Where is your 4 family located?

You have a lot of undisclosed information that must factor into your decision. Do you NEED or want to make this purchase? Is it strictly an investment or is it a personal residence? If you want to remain in BK, and this is for yourself I would recommend buying a 2 bedroom condo that has a tax abatement. A 1 bedroom condo is a waste of $ IMO.  Mortgage rates are low and there are a ton of condos on the market. You can rent out the 2nd bedroom that will help you with the loan payment/maintenance while you build equity. 

If you're looking strictly for investment and you are not looking to live in the unit, look outside NYC and do NOT buy a condo.

She has to take it out bc she’s the only owner. You can do the leg work though.

@Walmsley Gedeon, yes you can tap into the equity in order to renovate. Again, be careful with the numbers. You do not want to over leverage. You also don't want to over-renovate to the point you reduce the ROI due to extensive renovation costs. In short, get the most bang for your buck.

How many units in the investment property? What neighbourhood?

Everything in this situation depends on the numbers. Does the separate investment property already have a loan? If so, that complicates the matter. If not, she can easily get a loan on the property to finance the renovations.

You want to avoid the situation where she is over leveraged. Given her situation, it might be in her best interest to consult a fee-only financial planner to help plan out this situation and run thru the numbers. A misstep would be very costly considering she is retired.

NYC Dept of Finance

Title Company and/or Real Estate Attorney