All Forum Posts by: Carini Rochester

Get the bank financed property first, while you have the DTI. Buy the owner financed property second. Owner shouldn't care about your DTI. The owner should look at it more like a DSCR, and should be pricing the property and offering terms such that the income from the property is adequate to pay back the loan.

Great work! This is very encouraging!

Perhaps you mean, what would it be wise to know about the property. If you are getting financing, the mortgage company will need to walk the property for an appraisal. Your insurance company might want to look at the property. 

It would be wise for a buyer to feel confident that the building is in good structural condition, that it has a certificate of occupancy. That no additions or remodeling was completed without a permit. How are the utilities billed? Are there separate gas, electric and water meters for each apartment? Are there separate furnaces, AC, water heaters for each apartment. What's the life expectancy of the roof, paint, furnaces, water heaters, etc.? I do that inspection myself because I know a lot about small residential buildings. Many people hire an inspector.

Call the town/city hall. Ask for the zoning department.

Get on 390 and exit in the Rochester area.

In my area there are a few small regional banks that have competitive DSCR products. I have three DSCR loans and that is what I would use for the type of real estate you are describing. The bank I have used, Lyons National Bank, lends to me through my LLC. Your question 3, I don't know. As I recall I paid some fees, but no points.

"three percent again this year according to state law."

This doesn't sound right to me. Are you sure there is a state law that says this? There certainly is not a state law like that in NY. Market rents have been going up a lot faster than 3%. You'll never catch up to market rents at 3% per year.

I typically structure these transfers of money as loans. I (or one LLC) loans money to the LLC that is short of funds. If the amount is significant I draw up a document stating the interest rate and the payment plan. For smaller amounts I just pay it back as quickly as I can.

Without looking at an analysis, I would say that most single family houses on the MLS in the Rochester area will not cash flow. My gut feeling is that your analysis is pretty good. On single family rentals, make the tenant responsible for snow removal and lawn care. After buying three single family houses (one in Rochester, two in adjacent suburbs) about seven years ago, I switched my emphasis to small multi-family because the cash flow is better. Even though there is more maintenance and more turn overs, three and four family houses in C neighborhoods work better financially.

This is a typical roof drain. The roofing company should not have left large, unprotected drainage openings in your roof. They should have installed roof drains (as in the picture.) The roofing company is at fault for not installing these and your PM should not have accepted their work without them.