All Forum Posts by: Boaz Golani

Matt hi,

Thanks so much for your reply.  It appear that they bought the tax lien from the City.  I found out this information on Acris.  And you are also correct that they have a real estate asset management department.  Though the contact number may be under my nose so far I was only able to reach a phone number that has an electronic message to all callers including an email address to which I have not received and reply as of yet...I googled of course but so far fishing nothing but dead ends. 

Hi all,

I have been putting an eye on this property for a number of years. I have tried to contact the owner but did not get any response.  I recently found out that the City (NYC) got involved and sold the tax lien to the Bank of New York also known as BNY Mellon.  BNY Mellon is the trustee whatever that means.  I thought, oh good, now it should be really easy to get through to the entity in control of the property...apparently it is just as difficult as it was trying to contact the obscured owner before. I am running to a dead end here and need some help.  I have to get to the bottom of it.  I would hate to see somebody else taking over.  Making several assumptions, true, I believe this could be an amazing deal!!! I want to buy it and I cannot locate the person or entity in control of it.  Any ideas anyone?  Many thanks in advance.

Hi all. I live in a very expensive area where I look to invest in a multifamily. I have been crunching numbers now for several days on hypothetical properties based on prices in my neighborhood and came to interesting conclusions regarding the 2% rule which I would love to share and see what BP pros think. As I see it the 2% rule is a necessity for low-priced properties, and very unlikely to be found for high-priced properties. When BP pros discuss the 2% rule, really they discuss the 1%-2% rule. If you can only get 1% of the property price in rent per month on a low-priced type of property you are probably running into trouble. But when you look for a high-priced property of a similar type where getting 2% of the purchase price in rent per month is very unlikely the 1% may still look quite good. The reason for it is that expenses don't grow is a linear ratio to the cost of the property. Rather they grow significantly more slowly. For that reason the more expensive the property is the higher the NOI is where the 1% is a constant, meaning that the rent is always 1% of the purchase price per month. So if the monthly rent is always 1% of the property price then the relationship between the property cost to the monthly rent is linear. But if the property expenses grow at a much slower rate relative to the increase of the property price then the relationship between the two is a declining curve. That means that the more expensive the property is the higher the NOI is.

Ali,

I read nice articles you wrote.  Thank you for your reply.  Perhaps out of state may work.  

Edward, Matt, Justin, I thank you for clarifying this issue.  Your comments seem to come from true experience and understanding.  I like Matt's approach.  Seems like that would be a great way to go, rent where buying does not make sense and buy elsewhere where it does make sense.  Edward, thank you for mentioning the 2% rule. It clears the picture.

Justin, I totally see what you are saying, I was not thinking about it but it makes perfect sense. This forum is indeed a great source for education.   

Bob hi,

I entered the expenses as recommended by the calculator: utilities, 10% maintenance, 10% big repairs, 10% management company, 3% inflation, etc.  Thanks for asking.

Thank you all for your comments!  I will catch up in the morning.

I though I would invest in a two family and live in one unit.  What I found out from using the calculator is that investing only 3.5%, even if I am able to find a 2 family for $500K  (in a neighborhood where 2 family go for $800K and rent is $2,500 per unit) I will have a negative cash flow to cover beyond my part of the rent.  I still fee something here does not click. 

Brett, I think you are right.  The numbers around where I live may be super inflated which makes the calculator appear to make no sense...

Mark hi,

Thank you so much for replying. I believe I have a basic understanding of ARV. That is my point though. There seem to me no correlation between the cost of these houses and related expenses to the potential income. I am looking to use a 3.5% FHA loan. I needed to bring my numbers down to $300,000 basically to avoid a negative cash flow.