All Forum Posts by: Andrew Jennings Freerks

Seem like a silly question but I'm renting out my first rental in the Bronx. For applicants with multiple adult occupants, do you take the combined income for everyone into your income criteria? For example if rent is $2,500, you would expect total gross income of 7,500/month if my criteria is 3x income?- This approach should be fine.  For my units, I usually look for someone with annual income 40x the monthly rent so I know they are financially secure.  Also credit score 680 with no missed payments over the last 2 years and also check their criminal report just to make sure you know who these tenants are, as the eviction process in New York city is very long and expensive.  Better to be safe than sorry.

Additionally, do you all generally use a smaller income criteria if the rent is inclusive of utilities? I own a multi-family house that was converted from a single family, therefore, there is only one gas meter. It may be easier to include utilities in the rent. - yes this is a good approach. You'll just have to figure out how much utilities normally are for your calculations.  Also control the thermostats so the tenants don't jack up the heat in the winter giving you a massive bill.

Welcome @Abby Blumenfeld.  That was a great introduction.  Where did you purchase your rental?  

@Ariel Rivas I have renovated several places and know the Bronx rental market well.  I'll DM you.

Hi Alex, can you DM me the details?  I have a few investors I can put this in front of.

@Omar Pena I did start paying for the annual membership for PS.  That brings the price down to about $55/ month if that helps

Investment Info:

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

Purchase price: $285,000
Cash invested: $135,000

Side by side 2-family properties (4 units in total), which needed either updating or a full build out. We completed the updating of two of the units so far, and rented both. Currently, we are framing out the shell of the other 2 family, and just started electrical. Purcahse price: $285K (off market), $225K estimated reno. Project cost: $510K, with an ARV of $750K. Once complete, I expect this 4 family to gross $7K monthly, with a net cash flow of $3K and have $250K in equity built in.

What made you interested in investing in this type of deal?

I wanted to prove to myself that I could complete a project on my own. The pricing, seller's vibes, location all made it seem like a sweet deal.

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

Off market, through connections I made in the city

How did you finance this deal?

hard money, renovation loan

How did you add value to the deal?

updated 2 units, added bedrooms and completely built out a shell of a 2 family adding two more units.

What was the outcome?

We'll see but so far so good

Lessons learned? Challenges?

Deal with contractor timelines, and bankers funding strategies

Hola @Leo Szac, mucho gusto.  Let me know if you want to jump on a call or grab coffee next week.  I am from the midwest, and invested there before turning my attention to the Northeast (for many reasons).  I'd be happy to tell you about my investing adventure with all of its ups and downs.  DM if you want to connect.

@Chris Terborg sounds like an interesting deal.  Is the lot currently vacant and can you send me the plans so I can see the unit sizes and layouts?

Unfortunately no.  Still on Propertyshark :(

@Ashley Payne great post.  Coops can be difficult and I understand what you mean when you talk about the appreciation, as I bought a condo in Mott Haven and appreciation has been slower than I hoped (thanks Covid).  Could you claim a hardship to get the coop board to allow you to rent for longer than the 2 years?  Otherwise, I assume you are seeing about 5-7% appreciation annually, so if you can sell and beat that return elsewhere, then it makes sense IMO.

How much do you anticipate your rental would go for?  Knowing the area, I think you should be north of $2,200.