All Forum Posts by: Cristiano Bell

I am looking for a HELOC on my primary residence in NYC (not listed as such in the W2). I have a salary and a good amount of real estate income.

So far I encountered issues as my real estate NET income looks like $0 because of depreciation, and so the DTI looks inflated since I have the corresponding real estate debt.

I am looking for 300k HELOC on $1.2M property with $660k mortgage at 3%. Anyone has any suggestion? I need a lender with experienced and flexible underwriters.

Thank you,

Cristiano

0 Votes

New York City, New York

Hi everyone,

My company has only done internal renovations so far. We are thinking about expanding into development. We have been offered some plots in Brooklyn and we are unsure what would be the cost to develop them.

The one we are most interested in has a house on it. We would need to demolish it, and there is approval for 7 stories, 12 apartments. The total area would be 9000 sqft. What would be the cost to demolish and build?

We are also interested in the Harlem area, I assume the cost per sqft would be similar?

Thank you,

Cristiano (www.integerinvestments.com)

1 Vote

New York City, New York

Originally posted by @Efraim L.:

Hey Cristiano,

Local NYer here and I kinda agree with @Joshua Heller. But, as a local attorney, I want to warn you about the downsides of the anti-LL laws in NY especially in rent-stabilized properties.

Thank you Efraim. I have looked at the legal side and I agree that is risky. I would be happy to take some risks if the upside was worth it, but at the moment cap rates are still compressed, so maybe not worth it.

0 Votes

New York City, New York

Originally posted by @Joshua Heller:

@Efraim L. that is a really good point. Essentially everything is in favor of renters right now from a legal perspective with the new legislations.

You are right, the political situation doesn't seem to favour landlords. Increase in taxes and regulation is the biggest risk. Cap rates have increased but they are still around 5% or less, so not a lot of margin for safety...

0 Votes

New York City, New York

Originally posted by @Taylor L.:

At this point it seems like it's still catching a falling knife in many (if not all) of the high cost primary markets. We're still in the midst of covid and additional lockdowns are probably on the way. I'm not an expert on NYC investing, but I bet the smart money is waiting and watching for the real deals to start coming up.

Hi Taylor, thank you for your thoughts. That's what some property managers told me. However, it is always hard to know when a market reverses. And when it does, deals are gone. But I have researched the market for a while now. Although prices are negotiable, they are far from motivated sales.

1 Vote

New York City, New York

Originally posted by @Alexander Szikla:

@Cristiano Bell as you may know cap rates came all the way down to 3% (or below!) during the "boom" times but COVID has loosened everything up and now 5% can be had in Manhattan, 6%-7% in Brooklyn and even 8% in the Bronx.

6% in Manhattan is an incredible deal! Although rental increases are tough (the destabilization game has been played out and beat to death) never has there been a time in recent memory when you can actually cover debt and cash flow in Manhattan.

Today nationwide rates hit a low of 2.7% - so there has really never been a better time "spread" wise.

Long term, I think NYC will come back as it always has time and time again. I am also a great believer in investing when there is distress and deploying capital when you can.

If you are looking for yield in the short run, Manhattan may not be for you. However, it is certainly the most attractive it has been in years from a cash flow perspective. If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made.

Thank you for your comment Alexander. That is exactly my thinking. So you think that 6% is good for rent stabilized or for free market (I haven't found anything above 4.5% free market in decent areas)?

And anything else to worry about rent stabilized apart from the limited upside?

0 Votes

Hi everyone,

I am looking at rent stabilized investments in Manhattan. Does anyone have any insights? Maybe someone who owns an investment property?

I have heard that the new rules are problematic. I am aware of the limited rental increases (1-2% lately), but I was wondering whether there is anything else to consider? A property manager also mentioned that the new 2019 requirements are taxing from a management point of view. Any thoughts?

I am looking at 6% cap rates, is the added return worth the trouble?

Thank you,

Cristiano

0 Votes

Hi everyone,

I was wondering whether you think it is a good time to invest in multi-families in Manhattan (ranging from 3 to 20 units) or neighbouring areas. I am looking at Harlem, Astoria, Brooklyn. Upper West Side also has some opportunities but a little out of price range for us.

Also, any thoughts on rent stabilised?

Thanks,

Cristiano

2 Votes

New York City, New York

Originally posted by @Martin Grizzanti:

i invest in Rochester ny - if you come this way let me know

Thanks Martin! How is Rochester as a market?

0 Votes

All Forum Posts by: Cristiano Bell

Cristiano Bell has started 5 posts and replied 12 times.

Post: HELOC - NYC - 2nd lien - high DTI due to real estate income/debt deflated

Post: HELOC - NYC - 2nd lien - high DTI due to real estate income/debt deflated

Post: Development cost NYC (Brooklyn)

Post: Multifamily investments in NYC/Manhattan

Post: Multifamily investments in NYC/Manhattan

Post: Multifamily investments in NYC/Manhattan

Post: NYC rent stabilized buildings (New York City)

Post: NYC rent stabilized buildings (New York City)

Post: Multifamily investments in NYC/Manhattan

Post: Moving to New York, looking for contacts, properties, accountant