All Forum Posts by: Anthony Caleca

I sure will!! and thank you for your time and help. one more question as far as acquisition of the property it self. would you recommend hard money, or just trying to apply for a conventional mortgage? I have very good credit score and enough for a 20-30% DP if needed. But if I am looking to buy property, build it and just try to sell what would be best way for financing the property cost?

As far as the construction cost my dad said he will foot the complete bill for the materials and sub contractors. in which I will pay him back in full upon exiting the property whether sell or refinance and rent, that was made very clear. he has liquidated his brokerage account  so has surplus of cash on hand that he will use.

as far as real estate agents go, I do have a few friends who are agents in Staten island, who I can ask and get their take on the AVR, worth a shot to see what they have to say.

so relator cost I forgot about lets say 4-6% for that, construction cost will be footed by my pops no interest just need to pay him back, either after completion by selling the property and using profits, or refinancing at new value and paying him that way. acquisition I was looking at a few hard money lenders or conventional mortgage, which I should be approved for.

Now with interviewing real estate agents in the area, would they even entertain a meeting/interview and going through trouble of  estimating the AVR of what I intend to build if, I don't even own the property yet? any other ways to find out what the value of it would be, like an appreiser or something along those lines?

Hello everyone so I live in Staten Island, NY who's market seems very over valued and sometimes crazy when it comes to home prices. To make a long story short and simple, I have come across a single family property right around the block from my current residence and at first glance I think it could be a great opportunity.

Like I stated the house in around the block from my current residences on a beautiful block and great neighborhood, I am very familiar with this area since I live there. Great schools close by, low crime, residential tree lined block with easy access to transportation as well.

The house that is currently there is a complete gut job, it is disgusting which is okay and what I think makes it a goo opportunity. The property is 40X 153 and the lot is 6,100 sq ft total. A lot of opportunity to renovate existing property expend and go up a level, to build a 3,100 sq ft home.

I would estimate construction cost to be around $125,000-$150,000 and the property is being listed as $490,000 (which is somewhat negotiable). I am having a hard time  seeing if the current property is over priced or if this could work out to become a good deal.

Directly next door they just built a 2,464 new construction home on a 4,566 lot and it was just sold for $787,000, and similar listings in the area are suggesting  anywhere from $300-360 a sqft. so even though on paper the numbers work, I just am skeptical on the purchase price being 490k for this dump of a house.

At a quick glance, 490k for property acquisition 20k closing cost, 150k construction cost equals around 660k total investment. (PLEASE LET ME KNOW WHAT I AM MISSING). If comps are trading at 300-360 lets just say a $300 to use the more conservative number, 3,100 sq ft home and $300 per square foot is 930k, which leads a margin of profit somewhere in the upper 200k.

Please let me know your thoughts, PS my farther is a builder so if price for construction sounds cheap that could be why, it will not be outsourced to a contractor,

Hey Sharef,

I live in Staten Island as well, and I also agree that Staten Island is a great market to buy and develop property over the next few years. My father is also in the development business in NYC, I would love to connect so we can discuss a little bit further.

I had a friend who just picked up a duplex in the great kills area. its a CF monster, he lucked out with the fund and buy

@Derrick Wilson do you know roughly how much DHS pays? is it similar to HASA as far as per bedroom instead of per unit, and is it as high as $1,500 per person?

I know with HASA it works same way as DHS as far as it covers 100% of rent so you don't have to worry about people not paying, and if somebody moves out they just go and fill up that spot with the next person on the list so there is never any long outstanding vacancy. And supposingly there is a very long waiting list in the Tri state area which would make good for a landlord to be involved in

Sounds like a great opportunity, I definitely agree with sending out a letter to the tenants in a professional manager introducing your self. if you stay business focused and professional rental income is a great way to generate current income and build long term wealth! best of luck

 Thank you for the response I really appreciate it. I figured it sounded way to good to be true, and even though I was skeptical I still had some thoughts of it being true because my father in law has been in real estate for close to 25 years and is pretty successful. He stated he already has property rented out under that exact system getting $1,500 per bedroom by HASA where tenants use the bedrooms as private living spaces and share the common living space like kitchen bathroom and living room area.

The reason I am looking into because I was going to purchase a property very similar to the one displayed above and rent it through this system, and try to snow ball profits into another one and another one, to generate current cash flow and build long term wealth by having HASA pay off mortgage over long term.

Do you have any advice on where I could go to do more research or due diligence to see if there is a system out there like this, or to educate my self on the actual HASA program 

Hello BP,

I have a few questions about the HASA program in NYC. My father in law has been investing in multifamily homes in the Bronx, NY and finds his tenant's through HASA. I spoke with him for hours this past weekend, and he was explaining that the city or government pays him $1,500 per bedroom (not apartment). So in one of his multi family homes he has 11 bedrooms, that HASA fills up for him and pays him $1,500 per bedroom each month ($16,500).

This sounds like an amazing program, but my questions is this true. I am asking if anyone else heard of or dealt with HASA before and can validate that they pay $1,500 per bedroom. Or is this false and could be an exaggeration.

I helped him put together a very quick word document to map out the numbers (nothing professional) just something to get organized and layout all the numbers. I will paste it below, please look it over and tell me if this seems to good to be true, or is it possible. I am definitely a little skeptical so please if you have any advice or experience with this please share your input.

Property Details:

• Fully Renovated 3 Family Home For Sale, 5 Over 4 Over 2 Bedroom, 1 Over 1 Over 1 Bathrooms, All New Kitchen With New Cabinets, Granite Counter Tops & All New Stainless Steel Appliances (Fridge, Stove, Dishwasher, Microwave). Hardwood Floors Throughout, Great Live In and/or Investment Property

• 11 Bedrooms
• 3 full Bathrooms

Finances:

$599,000 (purchase price of House)

20% (Down payment to purchase house)

$12,000 (Closing cost)

$599,000 X 20%= $119,900 (Total down payment)

$119,000 + $12,000= $131,900 (Total out of pocket including closing cost)

Monthly Income:

11 Bedrooms rented for $1,500 per bedroom

11 X $1,500= $16,500 (Gross monthly income)

11 X $700** (per bedroom property management and utilities) = $7,700 (total amount to manage the apartment building and place tenants in each bedroom, with utilities per month)

$16,500 - $7,700= $8,800 (scheduled rental income after property management)

Monthly Expenses:

$2,200 (monthly mortgage payment, 3.48% 30 year fixed)

$2,000 (contingencies monthly expenses)

$450 (property taxes)

$150 (homeowners insurance)

$4,800 (Total monthly expenses)

Monthly cash flow:

$8,800 (scheduled rental income after property management)

$4,800 (Total monthly expenses)

$4,000 (Scheduled net rental income) or $48,000 (Annual net cash flow) or 36.5% ROI

** $700 out of the $1,500 per bedroom will be paid to a property management company that will assign the tenants into the apartment, but will handle all the maintenance and day to day activities. This cost will also cover the Gas and electric bill on a monthly basis, so the $800 that is left over from each bedroom is after property management and utilities**