All Forum Posts by: Bob Stevens

Hi everyone, 

I am located in NYC and am looking to purchase my first property for long term rental investment here. I am still new to this and there is a lot to learn! Would appreciate any tips, insights, or areas of suggested research. I am looking at multifamilies in NYC versus single family homes in Jacksonville, FL (yes there is a significant price difference), and I cannot decide between the two.

Factors I am considering.. 

NYC:

- NYC will probably appreciate at a higher rate and shorter amount of time compared to Jacksonville homes.

- I will be able to find tenants sooner in NYC compared to Jacksonville. Depending on the area in Jacksonville, I see many listings that are 60+ days old.

- Lower down because I can do FHA loan

- Probably don't need a property manager because I live here

- With the potential rent income vs monthly mortgage price, I am probably breaking even if lucky

- Pro tenant

Jacksonville:

- Total cost of home is lower, even though I will have a higher down payment because I am buying it as an investment property

- With the potential rent income vs monthly mortgage price, I might make a couple hundred a month... which can eventually be used as a down for another property?

- Need to consider cost of property manager

- Home insurance I heard is higher in FL

- More landlord friendly I heard

Any and all thoughts, critiques, suggestions, or whatever factors I haven't considered would be much appreciated. I've never bought a home before and am new to this!

What cities are still great to invest in ?

I'm interested in the Ohio area. But also I need a reliable contractor for flip properties 

Quote from @Bob Stevens:

Quote from @Andrew Foster:

Hey guys,

So I have an offer accepted, I'm looking to close in 30 days on a multi-family in the Cleveland area. I'm curious on how to go about paying the down payment so that I will not potentially trigger a "due on sale clause", when I transfer the Deed to my LLC. I still plan on personally guaranteeing the loan to secure it. Should I have the funds come out of my LLCs account for payment or is it fine paying the down payment out of my personal account then once the property is paid for, transfer the Deed to the LLC. The LLC would collect rental payments in a business account and make the monthly payments on the mortgage operating like it should. (but mortgage would be under my name still). I've been told to "Wait a few months before transferring the Deed". In advance I'm sure people will ask why I would have it under an LLC for my first property, of course liability protection but the main reason is Taxes, I'm not trying to have the added income from the property be on my personal tax returns. I appreciate any and all input!

 Who walked this property for you and gave you the reno budget? PLEASE do not tell me your realtor. Do you know how much the reno should be? Does it have the led cirt, and rental reg, and do you know how much they will cost you? Is it rented aer they current? Any tenants SEC 8 , and if so do you know if they are actually still on the program and current on their portion ? 

 Hey Bob thank you for the reply! So the first property fell through after I got the inspector in there. He flew a drone and saw that there was more roof work than I felt comfortable taking on, ontop of some code violations in one of the units and exposed knob and tube wiring in the attic space.  

I do currently have another property under contract.  I am waiting to have my PM and Agent do a walk through (he does pretty thorough videos for me as I am an out of state investor). Here is what I do know so far.

Property is a Triplex with 2 units currently rented ou CMHA. 3rd Unit Vacant, renovated and rent ready. Rent rolls show rents are up to date. 1 unit had lapse in payment for one month. This was evidently due to a refrigerator that needed to be replaced to stay in compliance for CHMA. The tenant wasnt allowing delivery and replacement for some reason. Which caused a lapse in compliance. It ended up getting sorted out and the rent got issued through the CHMA, but there WAS a delay. The leases look to expire, one at the end of this month, and one the end of next month. So I am currently looking to see if they are getting renewed, and if the CHMA will be renewed as well.  I do have copies of the leases, Rent rolls and the P&L Sheets. When my Agent and PM do the walkthrough, I plan on having my Agent give the tenants an Estoppel Agreement to fill out so I can attempt to have full transparency of the leasing situation. As far as Lead Cert, I don't have that answered yet, I would assume doubtful from just my little experience of a majority of the properties in Cleveland that ive seen on the market.

I appreciate any and all feedback!

Quote from @Bob Stevens:

Quote from @Kyle Peters:

Hey everyone, 

I recently finished reading J. Scott’s Book on estimating rehab costs. I know the book was published 5 years ago and the associated materials may be a bit outdated with the inflation that has taken place in the last 5 years. Does anyone have a template with basic Scope of Work Pricing Estimates? I’m closing on a property in a few days and I’m curious to add up our budget for rehab costs.

Thanks!

Kyle

 IMPOSSIBLE to get the reno cost from a book. Every city is different, PLEASE get yourself to a RE meeting, and do NOT try and do all this from books and sitting online, it will not end well.  YOU and ONLY YOU, need to know what it will cost. 

Bob,

I understand it is impossible to get rehab costs from a book. That’s why it’s called the book on ESTIMATING rehab costs. I 1,000% agree that prices vary by city/location. Some jobs in New York City are obviously going to be much pricier than jobs in Cleveland. I’m just curious to see if anyone has a general pricing list. I should’ve been more clear that I’m not using a list to put together a budget, just to get a general idea of how much certain things cost.

Hey everyone, 

I recently finished reading J. Scott’s Book on estimating rehab costs. I know the book was published 5 years ago and the associated materials may be a bit outdated with the inflation that has taken place in the last 5 years. Does anyone have a template with basic Scope of Work Pricing Estimates? I’m closing on a property in a few days and I’m curious to add up our budget for rehab costs.

Thanks!

Kyle