All Forum Posts by: Andy Perez

Hey,

My father and I started looking at several properties in the Bronx in order to get our feet wet and learn as much as possible about our area before investing. Having my Real Estate licence has allowed me look at and analyzed many different homes, but now we have found a deal too good to pass up. Because we where not expecting to get in so soon, we are not financially prepared or meet bank requirements for a loan due to job history or cash income. I am hoping that some one can give me some advice to how to buy a $370,000 multi family home that rents for $4950 per month and potential for more.

Here are some additional details... In addition to my real estate income I work at Sleepys (mattress store) which brings me to about $75,000 per year, but because my job is commission based I need to show 2 years of consistent employment in order for the banks to consider my income which leaves me in a tough spot for a loan. My father in the other hand, has over 15 years in his position and makes about $52,000 per year, but his tax returns reflect too many expenses in his business which leaves him with an income too low to qualify for the necessary amount. So, we have been thinking about trying to get private money or hard money to buy this home until we can refinance it later with a bank. By the way both of our credits are well above 700 and we will be getting some cash in the next couple of month with will allow us to pay up to 50% of the property value. I know that if we put down 50% it will be much easier to get the refinance later, but there is so much competition in the Bronx for multi family that I am worried we may loose the opportunity. Can anyone offer any advice? 

Hello Alex, I too am from NY and I am hoping to get started investing in the Bronx which I know is a super competitive market. I started by getting my real estate licence so now I am an agent, but I really want to be a buy and hold investor. 

You said that you have "been employed as an acquisitions analyst", and I would love if you would give me some incite or advice on how to obtain a property owners name and phone number. 

I guess the best thing to do is give you some details about what I am trying to achieve first... I started by driving for dollars which you may already know is driving around looking for homes with long grass, boarded up windows or any other signs of distress. I have my eye on a property with boarded up windows, but cannot figure out how to get in touch with the person who owns it. I have tried talking to the neighbors, looked for history of sales in the MLS, and even left a business card at the door, but no luck. Is there another way to obtain this information?

Thank you guys for the feedback. Here are some facts and additions I may have forgotten... 

1. My dad is willing to partner up with me in this property by Puting down 20% of his money. Instead of paying PMI to the bank I'll just pay him. Then, within a five year spans eventually pay him back his 20 down payment.

2. The property does not need any work and is currently filled with paying tenants. Actually, I want to make some minor improvements and raise the rents especially the tenets who is only paying $940. The average market rent for a 1br in the area is about $1200 per month so The plan is to increase the rents in order to increase the cashflow. 

3. The property was converted from an oil based heating to a gas based heating system. According to electric bills the heating and eclectic combined is an average of $500 in the winter months. The tenants will pay their individual electric/gas, but I would be responsible for heating the home. 

4. There is a basement that I plan to use for myself, but I am not sure if it's allowed by the city being that it's not a legal basement. It's a very nice finished basement. In fact even looks nicer than some of the other units. I am also not sure how I would receive Mail there being that it's not a registered unit. 

Hello guys, I am looking to purchase my first home in New York. Its a short sale for $420,000 with 4 familys. The following is the monthly rent role... 

1br = $1200

1br = $940

1br = $1100

2br = 1433

The total rental income less the basement is $4673.00. The taxes on the property are $7754.00 and its a gas boiler which will consume approximately $400 to $580 per month in the winter with approximately $180 to $250 in the summer months. I have been searching high and low for a good deal and I found this property. It will be financed with an FHA loan with 3.5 down for first time home buyer. I have the cash to go do a conventional loan too but why use up all my cash when I can go FHA? I made an offer for $400,000 today and put everything in place to get this property. The bank will need a deposit from me of $5000. This is my first home so I don't know if a deposit is really needed so advice with that will also be helpfully. Finally, I would simply like feedback to see if I am getting into something I should not or should I go for it. Thank you guys in advance.

I am also in the market to purchase a 3 family in the Bronx, but most only want cash. I have been fighting with this too. I wish to purchase my first home using FAH and putting only 5% down. I am not sure how to get around this. 

Brandon, it's also important to note if 120k is market value or its a number the seller just came up with. If you find other properties that have sold for less then you have a better chance at getting both for a better price. Also to piggyback on Ryan you should feel embarrassed about your offer at lease a little. By putting myself in the sellers shoes, I think I'll take the deal so that I won't have to worry about wasting more time and money on the remaining duplex. Maybe give the seller something to think about and if he wants to sell then he will counter. 

Hello James, I work as a real estates person in the Bronx primarily working with rental properties. I am not an expect, but based on the  experience, if you buy a 3 family home odds are you will cash flow. 

Thank you for the advice Nuhan. I had not thought of that. 

Hello guys, I have been looking at a couple of 3 family homes for sale in my area (Bronx NY). I have based my search primarily on the price, but a list of most important to least important is really want I feel Is needed to simplify my search. I have the following list that needs sorting...

1. 1%-2% rule for rental income to cash flow. 

2. Location, primarily if close to subways 

3. Renovations, amount of work/money to make it rentable. 

Hey guys if there is a difference approch then please feel free to share it with me. I really want a property to cash flow which is why I want the rent role to be as close to 1.5% of the total investment as its a rule used by many investors which should ensure cash flow. Sometimes I even see myself forgetting everything else and only using the 1.5% as the rule for selecting the right property. Thank you guys in advance for your feedback. 

Any advice for finding a whole seller or agent with the experience necessary for this transaction?