All Forum Posts by: Dan M.

Hello Justin,

What questions did you have? I could try to answer and I'm certain the community would answer if you posted them. 

@Pete Wolven there is a group that meets in Poughkeepsie. I thought it was an odd place for a meetup for Orange County. There was for a time a meetup in Middletown NY as well. I tried to start one during covid on zoom but didn't have too much interest /consistency. I have since moved away , but there were some facebook groups that might post a meetup, if I see one I'll throw it on this thread.   

Hello Isaac,

I think your about 5 years too late property values and taxes have skyrocketed. There may be an opportunity but it will be rather expensive as a point of entry. However it depends what lens you use. If Newburgh sees valuation like Beacon did there still could be opportunity, however like I mentioned the people betting on this already did it years ago. 

I think the cons are high crime rate and I imagine high turnover / non paying tenants. I hear the city is a nightmare to deal with. Just my 2 cents though, I haven't a nickle invested in Newburgh myself.  If you move forward on a property feel free to update this post I'm curious to see how it turns out.  

Thats a great price, good luck on the rehab! 

Bumping this in hopes of a reply. 

Id do more research on an LLC and decide, I highly recommend in a JV to create an LLC.

Maybe I don't full understand, but do you have the money or does he? Why do you/he have to use gift money? 

I highly recommend beyond the trust thing to spell out in black and white EXACTLY what each person is responsible for. Think of everything. Think about everything again and put that in too. Make sure the verbiage does not leave grey area. There will be a time in the future if you do move forward with this, 1 month, 1 year, 10 years from now, where one person is going to be upset because they are doing something that's "not their job". You can always get a new partner, you can't get more family. 

Hey Marshall,

In my opinion that 8+ is way too high, I would speak to another bank or a DSCR lender. How is your credit score? You may want to start working on your credit score to save big long term dollars on better rates in the future. Noone has a crystal ball but rates supposedly are coming down in 2025 that should be enough time for you to do whatever you have to do if your credit is below 750.

Some ideas besides that:

Depending on how much equity you have you could do a cash out refinance to get money that way. 

Do you have a 401k you could take a loan from?

Save relentlessly. On everything. From groceries to your electric bill - on ANYTHING you can. Small sacrifices lead to long term gains. This includes the expenses on your current properties. Doing this for a few years with honest effort will put alot of extra money in your pocket. 

Could you rent your primary and move into a new multifamily to save expenses that way, then move out in a few years? Could you rent out part of your primary to generate extra income?

This is a question only you can answer, look inside for the answer. I'm being serious this isn't some campy quote. At the end of the day your looking for the answer that you already decided on you just need validation. Sometimes the emotional peace is worth more than the money. My thoughts from the little I know about the raw numbers however:

1) You have no reason to not raise the rent at least a small amount to compensate for the extra cost of ownership the past few years. If that's 25 dollars or 300 that's entirely up to you provided you comply with the law.

2) You could pull the equity out in a cash out refinance, and use the proceeds to purchase another property and keep both. Run the numbers and make sure the extra work would be worth the money. ( Now you have 2 or 3 tenants instead of one)

3) Remember to add a risk premium to your new venture, whatever it is or how that looks like. You could get a non paying tenant or a bad well. The grass is not always necessarily greener, though it may appear to be on the surface. 

Everything is negotiable.  I whole heartedly do not agree with placement fees because its better for the management company to allow for turnover. Why make 5-10% when you can make 100%? Its a serious conflict of interest.  

Hello BP folks in the UPNY area. Is anyone aware of a real estate investing club or meetup happening near Oneonta? If not does anyone want to start a monthly or bi monthly meeting with me?

Anyone in the area feel free to drop a message below if your interested and where your located and we can work on a spot. Id also be up for one on one meetups as I am new to the area. 

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