All Forum Posts by: Charlie F.

Hey BP- I'm a new prospective RE investor, have done my research and have capital to deploy, yet to do my first deal, but looking in Rochester NY, as Jake&Gino referred to it as the "cash flow capital of the world". 

There are some very clear benefits to multifamily RE investing. But what about the risks? In particular, I'm wondering if I buy a property, lets say it cash flows at $2K per year. What happens if there's a major problem like needing to replace the sewer tank, or a new water heater or something? What does insurance cover? It seems that cash flow could get wiped out very easily, does anyone run into these issues? Any other big risk factors with a multifamily cash flow strategy?

@DavidShapiro Thanks! Appreciate your input. I actually have used the rental property calculator its GREAT and a good way to learn too. I was more thinking along the lines of a quick guideline to sort through a lot of deals efficiently, or a guideline I can give to a real estate agent to look out for me. On a $400K investment, do I need to be making $24K in order for that investment to be worth it? Seems high to me, but again a very seasoned vet gave me that number. Here's a question for you David that I like to ask a lot of people- what's your favorite way to identify investments? Do you just look on sites like Zillow? Or are you getting more creative? Thanks again!

Hey Guys- I'm looking to invest in my first property, a multifamily in the NYC area. I spoke with a seasoned investor who told me that for a property to cash flow I need rent at about 6% of purchase price. I've also heard that 2% generally will work. Don't want to start losing money every month on my first deal! How can I ensure that I will see a positive cash flow? Thanks! Charlie

@alexfranks thanks for the note- the numbers actually do make sense, I was more wondering if you had experience investing in areas where on paper, it looks like it will cash flow, but in practice you ran into issues with lower income neighborhoods. I was thinking theoretically that in a lower income neighborhood on paper the investment may look good, but in practice you might run into more issues like rent being paid late, or longer vacancy periods, or property damage? @Gino thanks for the offer, I'll message you offline! What is your podcast called?

Thanks everybody for the input!

All- thank you very much for your responses, the insight is incredibly helpful! The discussion on whether to invest locally in the NYC metro area versus in other more affordabe areas brings up a great point. Elio, you mentioned Bridgeport and New Haven, which are rougher areas, with tough school systems. Does anybody have expierience investing in lower income neighborhoods with a higher crime rate? What sorts of issues does that pose for an investor? Do you find that there is a higher vacancy rate in these areas or that your property is more likely to see significant damage?

Thanks again for all the help and support!

JJ- Thanks for the input! I could be interested in that if I found the right partners to syndicate, however I do have enough capital to deploy that I'm willing to take on my own project. 

I live in NYC new york city, and would like to invest in small multifamily, under 5 units, within about an hours driving radius of the city ideally. Do you know where I might find good investments in this area? 

Hi All- I've been interested in investing in Real Estate for a while now, and I've done a lot of reading, and have capital ready to deploy, but haven't yet had an opportunity to discuss investment strategy with anybody who has been there and done it. I want to get involved in Multifamily investing for cash flow purposes, but my local market (manhattan) is too expensive, I would be putting too high a percentage of my capital at risk. Does anybody have advice on investing outside of their region, and how to know a good deal when I see one? Thank you!