All Forum Posts by: Account Closed

@Account Closed 

I believe rehab costs really boil down to location of your property. In order to get the best estimates, you really should get bids from 3 different general contractors. Ask for references from investors in your property's area (REIA?), neighbors, agents, even Angie's list!

I would not try to estimate based on a formula, unless you've done it hundreds of times already. Better safe than sorry.

I can tell you this. Our apartment is a 2/1, 1100 sq ft in a very nice part of Queens. We gutted the kitchen & bathroom. Total cost was $40k. That same 40k could do very different things in different regions of the country. Get bids!

Best of luck!

@Hamlet J. 

Don't do coops - they are not really investment vehicles at all - UNLESS you get into the sought after coops in the higher end range or a building that is historical. In the city, it's not much of an issue. But in general, coops have too many rules and regulations, interviews, some boards & management companies can be very difficult to deal with. A lot of times, you will have to give back 3% or so at sale. Monthly maintenance is expensive and can increase. Getting into a coop is often times much harder than regular condos/SFRs/multis due to board's requirements. They can turn you down for any reason whatsoever and they don't even have to tell you why. I've known people that were questioned about what they recycled, down to their contact lens cases. They want to know your hobbies, they want to see whether they "click" with you. 

My board is comprised of actually good people, but requirements were not easy...needed to show we had at least 12 months of mortgage & maintenance AFTER closing during the interview, etc. We had to wait months for the interview. Took just about 6 months to close. But the outcome of stringent financial requirements is that the coop remains financially stable, rarely any increase in our monthly maintenance, etc. BTW, our monthly maintenance is 72.5% of our mortgage, almost like another mortgage!

Condos are better, but I like the multi idea. Are you planning to house hack? If you have 25% down (plus closing costs and some reserves) and can show a decent rent roll for the multi, that might be the way to go.

Best of luck!

Agree with @Carl C. 

I believe the ultra high-end properties operate on a different plane. A lot of times, it's just to get into the project/building, then they forget about it. Also international folks who feel US property is a safe place to "bank" their money. Also could be so that their kids have an address here so they can go to school here. These same people are probably buying in London, as well.

Here is an interesting from the Times - not as high end as the numbers @Max Galka is quoting, but a good read for those who might be interested in really niche building/selling.

http://tinyurl.com/prohjqc

@Tony Gonzalez 

Just curious, are you looking for multis in Jersey City or vicinity?

I really encourage you and your fiancee to buckle down and save $ first. I know no one wants to hear (read) that and could be somewhat unpopular with folks that do no or low money deals. 

Assuming that you already have 3-6 months of emergency savings already (in case of job loss, medical stuff, whatever...stuff happens), you might want to save some more $ to act as reserves for your future investment. Even if you do no or low money down deals, you will need some sort of $ in reserves in case of repairs, etc. Especially, if you're going to have tenants. You might be able to live with a drippy faucet in your unit, but maybe your tenant might not. That's just a simple example.

Even if you buy turn-key or new construction - who knows...repairs might be needed due to accidents, not necessarily age of property. Accidents can happen the day after you close, or 3 months down the road. 

I've heard of kids flushing toys down the toilet. 

My upstairs neighbor was filling her bathroom sink up to wash a sweater one night (fancy sweater, I guess) - she turned on the faucet, sat down in front of the TV to wait until the water filled up, forgot about it and guess who found water streaming out of the medicine cabinet? Yep, yours truly.

@Jay Hinrichs 

@Joshua Dorkin 

or Dunkin Donuts...I swear they've taken over the East Coast and they are now gunning for the West Coast.

@Ron Averill 

We have bamboo in our kitchen...it scratches/dings more easily (and shows it) than hardwoods (we have oak in other rooms) because it's softer. I would not really recommend it nowadays.

@Karen Margrave 

for higher-end, what about reclaimed or antique woods? 

http://www.elmwoodreclaimedtimber.com/products/flo...

http://www.remodelista.com/posts/reclaimed-wood-fl...

http://www.remodelista.com/posts/acid-washed-recla...

@Terry N. 

Re: Raleigh - your decision will really depend on a mix of factors:

- do you need or want to cash out now?

- if yes, what do you plan to do with the cash? Use it to make more $ (exchange into other properties or totally different investment vehicles) or will it sit in the bank & earn paltry interest?

- do you still want to be a landlord or don't want to deal with it at all? Do you have a PM? Since it's an early 70s build, do you really break even over the years?

If you need or want the cash now for one reason or another (medical bills, you're ready to go on that trip around the world that you've always dreamed of, etc.) - then yes, sell. Investments exist now so that we are more able to fund future needs and future dreams. If you have a need or dream a-knocking now, go for it!

If you're still not sure what you would do with the cash or if it will go stale in a savings account or low rate CD, etc. - then hold off. In selling, you might trigger some tax situation (I'm definitely not a CPA). Unless you sell and exchange into another property(ies) - then that goes back to landlording...

Think you need to dig deeper and seek some answers in terms of motivation and what you are really looking to trade these properties for? Freedom? Ease of mind? Cash (due to need)?

Best of luck!

@Mark Esposito 

@Brad Ransome 

Thank you both for the recommendations & sharing your resources. Much appreciated!

@Chris Martin 

Thank you so much - you are a wealth of knowledge re: NC - appreciate your sharing!

I'm going to read through the links & bookmark them so I can refer back repeatedly. 

I am not a trustee sale buyer because I feel that is an advanced acquisition method for experts who know the market and sub-markets inside out, who can estimate what work needs to be done and the associated costs, who has a team ready for levels of rehab (if needed), etc. 

That's a lot of ducks in a row and I feel I am more in the process of herding the ducks along in a generally correct direction instead. Until then, I look forward to continuously learning from everyone here!