All Forum Posts by: Connor Smith

@Shaun Carl Yeah looks like my math was bad, should be 28,000

I figured that with 915/month cash flow even accounting for 25% of rents going to maintenance that would still leave a cash flow of about 565/month for the whole house. 

My mortgage officer lead me to believe that due to me using the first time home buyers club grant, the minimum down would be 20%. I will have to get a hold of him and see if they can take a lower down payment. Thanks!

Yeah this house is located on the edge of a really trendy neighborhood. And I live about a mile down the street, so I am really confident that it is on a good location. 

The one thing that concerns me is how much cash equity I am going to be putting into the house because of the rehab costs. Due to the first time home buyers program I am in the bank will not allow for a 203K loan to cover rehab costs. I am a little worried about emptying my saving out this much and was wondering if anyone has any creative ideas for covering rehab costs? I know typically the bank requires a couple years of cash flow before they are willing to re-finance?

I think that I have found a good deal on a property, but as this would be my first deal I wanted to run the numbers by some more experienced investors.

House is a 2 unit - 3bed/1bath per unit. Interior of house is ready to be rented but it does need a new roof and the second floor porch may need some boards replaced. I would live in one of the units with my current roommate. Rents are approx. 700-800/month for each unit.

70,000 purchase price

14,000 down payment (20%)

56,000 loan (30 years at 4.5%) - 280/month

10,000 repairs (I am estimating this as the max I would spend on repairs for the roof)

4,000 closing costs

1,450 yearly taxes

1,000 yearly insurance

24,000 total cash investment

1,400/month rental income (700- per apartment)

485/month (mortage, insurance, taxes)

915/month cash flow

12% COC Return

Ideally I would like to live in one unit with my roommate and rent the other unit out. From what I have calculated with 1,050/month coming in for rent, this should not be a problem. And appears to provide a pretty decent return on my money if I were to rent it out.

Hey @Ramon Fyffe looking to invest in the Elmwood/West Side downtown area. Just waiting till October for my first time home buyers credit so I can buy my first house!

Thanks everyone for the kind welcome!
@Paul Timmins

@Paul Timmins Here is some more information about the First Home Buyers Club. Looks like this program is just for New York state.

http://www.fhlbny.com/members/faqs/first-home-club.aspx

@Michael Sherwood Thanks, I have signed up for the mailing list. Looking forward to it!

Just wanted to introduce myself as a new member to the forum and get more involved in the discussions on here.

A little about myself... I'm 23 years old, working full time in Buffalo. I have started paying towards the first time home buyers club (not sure if this is a strictly New York state program). Just to give you an overview of what it is if you have not heard of it. It's a program where you pay $187.50/month for a total of 10 months, I'll complete my 10 months in October. Then in October, the government matches my funds 4 to 1, so they give me $7,500 to put towards a down payment. In the meantime I have just been reading as much as possible so as to make the best investment possible when October comes.

My current goal is to have a multi-unit house purchased by December and live in one of the units by the time 2015 is here.