All Forum Posts by: Christian Valencia

@Dmitriy Fomichenko Thank you!

@Account Closed Thank you! I hired a property manager and they have been doing a great job.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Endicott.

Purchase price: $65,000
Cash invested: $16,500

The property appraised for $75,000 and tenants were already paying rent. I felt like this was a good deal and squeezed the trigger.

What made you interested in investing in this type of deal?

I wanted to buy something that was in my price range and manageable so I can get started with real estate.

How did you find this deal and how did you negotiate it?

I found it through my friend's property manager (PM). The PM owns real estate and wanted to sell one of his units because he wanted the cash to pay off stacking bills. He wanted $65K and I asked him to fix a small foundation issue for me to agree to the deal. He agreed, fixed the issue and we finalized the deal.

How did you finance this deal?

I put 10% down so $6,500 and financed the rest.

What was the outcome?

The property would be worth a lot more if I make some improvements to both exterior and interior but I will do that with time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No real estate agent involved in the deal. The lenders were great and took me through the whole process.

@William Amiteye Thanks for the details. I bought in Endicott, NY and got a pretty good deal. Are you renting to college students hence why you're purchasing near there?

Getting a great deal is definitely the key. I'm sure the areas I looked into are the pricier ones, would you recommend any other areas that are in your opinion a good investment? You mentioned that you will stay in Schenectady, does that mean that is your go to market? Sorry for all the questions, just very interested. Ince again thank you.

Chris

I recently began my investment journey and purchased a duplex as my first investment property. I read an article and began to familiarize myself with Schenectady, New York. It is growing on me and I would like to begin to seek my next investment property in this County. So far I have read the best towns are Northside, Union Street, East Glenville, Scotia, Eastern Ave, Stockade and there are a few others. I'm open to any discussion especially if it will lead me to my next deal. I appreciate your time, knowledge and experiences.

Thank you,

Chris

Hi @Long Wong,

It has taken longer than anticipated because a lien was found in the title. However, we finally came to a resolution and that delayed the closing date. The property appraised for $75k and the accepted offer was $65k which I am happy with. The current rental income is $1,750 per month which leaves me a descent positive cash flow. 

Right now my only worry is finding a property manager because I live 3+ hours away from Endicott. This will be my first investment property in the area and I would like to continue to look for future deals. I don't live in the area but definitely trying to expand my network.

Message me if you have any questions or want to follow up ~ Chris

@Stephanie Jacobson, thank you for replying to my post. I'm not too familiar with the area but I will be spending some time there this weekend. The duplex I am going to see is in the Village Center and from what I found online it might not be the best of neighborhoods. I would not know this 100% because I'm not from the area. What are your thought?

Thanks

Hi David,

All great points and thanks for sharing. I will be checking the property out his weekend, it's located in the Village Center. I have only gone to Endicott one time for a couple of hours and it was during the day time. It looked like a descent neighborhood to me, then again I'm from the City. As per the seller the tenants are paying the rent and he takes care of his properties. He will also be assisting with property management whenever I cannot get to Endicott. However, I think having options for a recommended property manager would be great. 

Thanks David

@Paul McCue Thank you for all the details. Both units combined bring in $1750 where the rents are just about market price. You are right and I will be very cautious when inspecting the property in a couple of days. As of now I do not think I need an agent but in the case I do I will reach out to @Stephanie Jacobson, thanks for the recommendation. 

I think it will be wise to get the home inspected, a connection with Rick Kie would be greatly appreciated. Thanks for sharing the thread, I read it and picked up good nuggets.

Thank you Paul

Chris

Hello BP community! 

First time post and I'm sure not the last. I'm a NYC resident and have been seeking to invest in an affordable market where it makes sense. I came across what I think is a great deal in Endicott, NY. A duplex (asking $65k, putting 20% down and financing the rest). Cash on cash ROI of 25% (mortgage+interest, 10% property mgmt fee, 5% Vacancy, 5% Capital Expenditures, Insurance, Property taxes, Water & Sewer).

Property is in great shape, just needs some elbow grease in the kitchens ($2.5k) and we're good to go. I found the property off market so I am the first to this hopeful gem.

I did some research on the town such as medium income, employment and population growth. All are not the best indicators I would like to see, specially being my first investment property. 

Is this a good investment or should I pass? Any advise & guidance from the BP network would be greatly appreciated.

Thank you - Semper Fi - Chris