All Forum Posts by: Michael Ansley

Everybody thanks for the advice. Hey Ceasar!!!! Thanks for  commenting. I am leaning towards a 2bdrm condo. Here is my thinking on this and please if I have missed something or my thinking is skewed please share your thoughts. First I want to live in a condo. I have never wanted to live in a house. It's too much aggravation to me. Second based on the conversation that has taken place on this forum I don't have the funds to afford a vacancy in a duplex. I have the funds for 3.5% down on a duplex in the Bronx but, again no room for error after the purchase if their is a vacancy.  Third I HATE CO-OPS!!!! While the neighborhoods and the buildings may be great to live in, the total lack of control does not fit me. The time it takes to get in and out of a co-op due to the co-op board and their interview processes can make exit strategies very tricky in my opinion.  I would also have to run potential tenants and buyers through the board and they can veto any deal that I like and would not have to explain why.  My research showed that even if I  got a non board sponsored unit that I would only be able to keep that unit non owner occupied for a limited time ( 2 years) before having to make it owner occupied again. I am aggravated right now just writing about a co-op as a potential investment.  On top of that I could not see myself putting 20% down and NOT owning real property.  

A condo in Parkchester  does not bother me. I won't name all the reasons why here but, here are a few. I want to live in Parkchester. The high maintenance fees do not bother me as long as those high maintenance fees keep special assessments away(Ceasar you knowing that area I am betting you would know more about that then I would).  I don't have to worry about heavy condo board involvement when it comes to buying, selling, or getting tenants. I can afford a 2bdrm condo right now in that area at 3.5% down OR 20% down. Everything right now is about building reserves and saving for closing costs. The OPTION to condo hack is the most affordable plan right now. I could live there for a few years on my own or with a tenant/roommate and pay down the principal, move out and then start renting out the entire unit as a rental with yearly tenants on a lease or on Airbnb (If the condo board allows it. (Again Ceasar I would deffer to your expertise on that). What would the condo closing cost be? I was taught to figure 3% of the purchase price. Again all insight, advice, comments, and ideas are much appreciated. I love BiggerPockets!!!!

Hey Joshua, Thanks a lot for the input. It was very helpful.  The bottom line is that at the moment if it was vacant for a month it would not be affordable.  Thanks for making this decision a a lot easier. 

Hello BiggerPockets Community, I am looking to buy my first property and wanted some help addressing some issues I am having or I am not seeing. First I can get an FHA loan but, I hate LIVING in houses and would prefer to live in a condo and rent out a multifamily or condo. The mortgage on a duplex where I would be comfortable living in for a short time in my market (Bronx, NY) I would only be able to cover if my tenants pay me rent. If either myself or my tenant take a financial hit/job loss that mortgage payment would not be able to be paid on time until my tenant AND I are both working. My question is If I am only able to make the mortgage payment if my tenant pays me rent does that mean that I am unable to afford this property now?

The second issue I am having is that I would prefer to live in a condo preferably a 2bdrm by myself where I can rent out the other bedroom if I want to or need to on AirBNB( If the condo board and NYS still allow it) or to a roommate. I can afford to make the mortgage payments with or without a tenant/roommate. If I put down 20% on the condo I would be able to ride out any financial storms that comes my way but, in putting 20% down I would eat up a lot my investment capital and have to start saving money again for my next purchase. I would also be able to ride out a financial storm if I put 3.5% down on an affordable condo but, I have had great difficulty finding FHA Condos in my area that are affordable. Interests rates are set to rise by the end of the month which means home prices should drop some and if I have put down 20% on my condo I may not be able to take advantage of buying a small multifamily at an affordable price to invest in.

To add some more context to this I am 100% free of bad debt. The right buy can get me out of the rat race. If I buy a condo that is not cash flowing to live in I will have immediately brought a liability that I want and will have the comfort that I seek but, it won't taking me to financial freedom as quickly as a cashflowing duplex. If I buy a duplex via FHA loan that cashflows I will be on the road to financial freedom but, in a living situation I would not want to be in temporarily. Does anyone have any strategies, insight, or advice for someone with my dilemma or any suggestions for someone who would like to start investing as an owner occupant of a condo?

If the inventory is low in the area where you want to invest in what is the best thing to while looking/waiting for the deal that makes sense?