All Forum Posts by: Mike Becher

New laws in NY just went into effect which massively shifts the eviction process. I get that some landlords are dirt bags, but man... this article makes it look like landlords are these mob sharks that sit around rolling in cash while making the lives of their tenants miserable in horrible conditions. 

Check it out ... be interested in your thoughts.

This section is just nuts... "Landlords are prohibited from blacklisting tenants or from using a person’s past eviction history in deciding whether to rent to them. Tenants advocates are praising the changes; landlords say it’s turning them into social service agencies." I guess I gotta change my application forms & procedure sheets.

I'm looking to put blinds in every window in the 2 units of my recent purchase. I usually just order from JC Penny's, but I have a couple that are 19" wide, which they don't seem to carry. I prefer the wandless/cordless 1" mini blind style. I've been looking online, but nothing that small, so I'm batting zero finding some that size from an online source. Where have you gone for smaller/larger custom vinyl blinds?

@Jason Parker lol

Sorry for the confusion. The $32k is downpayment plus closing. 

Investment Info:

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

Purchase price: $89,900

347-49 Grant Blvd, Syracuse, NY is a multi family home that contains 1,571sq ft and was built in 1955. It contains 2 units, 2 floors, 4 bedrooms and 2 bathrooms, off-street parking for 5+ cars, and a 2 car garage. It's located close to bus routes and qualifies for local transitional living organizations.

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

Purchase price, cash flow & proximity to other property owned

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

Skinny Realty. Negotiated full asking price with the contingency that the 1st floor tenant moved out due to illegal use of basement as extra bedrooms over the span of 10+ years and neglect by owner to deal with it effectively. The entire apartment needs about $7000 worth of work, along with about $1000 in the basement. Having them out enables me to get in and do the rehab.

How did you finance this deal?

$40,000, 30yr private loan w/ 5yr term to cover closing & rehab costs
$57,400, 15yr Balloon Note & Mortgage with owner w/ 5yr term to cover remaining mortgage

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

Steve Skinner with Skinny Realty. Highly recommended. I will likely never work any other agent as long as it's up to me. This guy is super personable, works his butt off and has integrity to match that is so rare. I don't think anyone would earn my trust like Steve has. This is the second property I've purchased, and both have been with Steve. If you live in the Syracuse, NY area, and are looking for a real estate agent... you can't go wrong with Steve.

https://www.skinnercnyrealty.com/

Basic Purchase Info

• Purchase Price: $89,900
• Closing Costs: $32,101.80 (covered by Private Loan - see below)
• Est. Rehab Costs: $8000 (covered by Private Loan - see below)
• Remaining Mortgage: $57,400 (covered by Owner Balloon Note & Mortgage - see below)

I am purchasing a buy and hold duplex, as well as covering rehab costs, through the following:

1. Private Loan | covers closing & estimated rehab costs

• Loan Amount: $40,000
• Amortization Period: 30 years
• Loan Term: 5 years
• Interest Rate: 6% 

2. Owner Holding Papers | covers remaining mortgage

• Loan Amount: $57,400
• Amortization Period: 15 years
• Loan Term: 5 years
• Interest Rate: 5% 

My main question is seeing that the entire cost of the mortgage, closing and rehab costs are not coming from any out-of-pocket expenses from me personally, will that effect how I fill out the calculator information?

This is only my second property and really the first time using the calculator with true detailed information.

Thanks in advance.

Perfect timing... bought my copy. Thanks!

That's why I'm asking the question. I'm investigating options from people who've been doing this longer than me so I can create a solid plan I'm comfortable with and understand. And yes... she would still loan me the $50k. We're investigating this together in order to make the most on the next move. If I went with what I know, I'd be very comfortable purchasing another duplex and would know how to do that. The objective of the question is to expand my reach and get the most out of the money that I could that I may not realize or have experience in.

I bought my first duplex in August of last year (2018), which I currently have an $85,000 loan on through a local bank. I have a family member who is interested in loaning me $50,000 for a second property @ 8% interest for a 30yr loan with a 3-5 year balloon. First, what steps do I take to guarantee this is seen by the government as a loan and not a gift so we avoid taxes involved at the original transaction. Second... I'm interested in hearing about various ways to go about using that $50,000 the best way I can. 

Would love to hear your thoughts/opinions.

 Hmmmm... never thought about that. Makes a lot of sense and keeps personal costs low.