All Forum Posts by: John Bucci

@Mike A. Hey Mike, 

As a local realtor/investor, it's important to remember we are not in a "cash flow" market around here. This is an appreciating market, so unlike what some of the others have said, any property that generates some profit beyond expenses can be a good deal. Tough to get great cash flow around here. If you want 10% returns you might have to look in another market, but if you want to park some money in a solid property, as long as it generates enough to break even after all expenses, taxes, etc. to allow you to hold on to it for 5-10 years I'd bet it will do better in the long run than a 10% cash flow property in a lower end market. 

Only thing I see missing is utilities, common for these properties to only have 1 boiler, especially if on oil. But assuming the electric, gas, and heat are all separate, I expect you'd still have a water bill? 

Seems like a bad deal to me. They take a percentage of the overall sales price of the home, not just the appreciation gained. So if your house goes from 600k-900k in 5 years you'd have to pay them 180k (20%) on the sale. Not to mention if your house doesn't appreciate, you still pay 20% of the sales price which will eat up a chunk of the equity you've paid down. So you could pay out 120k on a 50k loan if your house stays at 600k in 5 years.

Also, if you pay it off in less than 2 years, they make 20% interest on the money loaned. I'd rather get a HELOC or refinance... unless I'm missing something.
 

Hi Annie, 

Is continuing to live in the house yourself an option, or are you only looking to rent or sell? If living there is still on the table it sounds like a good option to stay and enjoy the position you're in, with a lower interest rate (depending how/when it will adjust), rather than entering this tough market with higher prices and rates, where buying a similar house will have a much higher monthly payment. In that case, use the the HELOC and savings to start investing.

The problem I see with selling, especially with the intent to invest, is that there are not a lot of great deals between current prices, rates, and low inventory. So what do you do with that equity once you've cashed out? May be tough to beat what you already have. At least that's my current personal opinion/strategy. - John

Hi Sukanya, 

How much are you pre-approved for? 

Northern Westchester will have many more condos than southern Westchester, which is mostly co-ops, and more expensive. Tough to cash flow with the current prices and competition, but the key will be finding a rental/investor-friendly complex, and an area with low taxes. CT could be a consideration as well. 

How much are you looking to spend? 

If you are not too picky on location, demographics, activities, etc, I would probably use prices/taxes to help narrow down the search, then pick your favorite out of those markets.

Deal Machine app or Propstream probably most commonly used. Or public records to get the owner name, then google or skip trace for the number.

Hi @Jillian S Young, 

There's no simple answer to this but maybe I can help you clarify things a bit - 

If you are pre-approved for 900k, in theory you should be able to purchase multiple homes, (3) 300k homes, for example. It will depend on the market/price point that you are searching in, and your goals, whether you decide to buy 1 more expensive/bigger/better property or multiple smaller properties. 

The pre-approval is mostly based on your monthly income-to-debt ratio. So after buying the first one, the lender will essentially go thru a similar underwriting process to see how much you can spend on the next one. If the property loses money for example, or rates increase, or your credit score decreases you may not be able to spend as much on the next one (OR the opposite effect). 

Not sure if that helps... but I would propose these questions to the lender, and focus on getting the first property to start...

@Thomas Cane

A few tips for you - Talking/meeting with more people. Open houses/showings for other agents in your office. Floor time in the office for leads/walk-ins. Social media to let your sphere of influence know what you are doing. Consider joining a RE team as you learn the ropes.

It takes a while to get going, just the nature of the business.

Any questions feel free to reach out.

Hey @Christopher Williams

I agree with previous posters, I would hone in on where you want to live first, and then hunt for deals in those particular markets. If you are in Bedford Hills now, that is a good potential area to look, and I think you could find a multi within your budget around there, Mt Kisco, etc. 

Find a local agent to help guide you and give you the last bit of confidence to pull the trigger. Look up Sarah Hooff, she's the best up there and helped me find properties. I'd suggest staying away from a big rehab on your first property. Buy something move in ready or that just needs minor work so it is not too overwhelming and removes some variables from the equation.

House-hacking and buying a pure rental require two different approaches in my opinion. Decide where you want to live and which strategy you want to use first, then find the property that fits.