All Forum Posts by: Dmitriy Yeshin

I put down 20% on my first investment condo. I used Wells Fargo and didn't have to get ``creative``. Shop around before you commit to any lender.  Good luck. 

Hi all. I am curious if some experienced people here can share some tips for increasing appraisal value? Given that square footage and location are fixed what can an investor improve that will raise the appraisal the most? For example would adding an extra bathroom vs updating kitchen provide highest ROI? Is there a difference between appraising a rented property (brrrr strategy) vs when selling a flip for example? Thank you all in advance.

Better question is how are you calculating cash flow :) 

@ Ahsan Khan

Hi Ahsan,
You are probably better off posting this question as a separate thread. I am sure there are a lot more qualified people here on BP that would be able to give you accurate information.  As far as my experience,  I already held a ''residential'' mortgage under my name so this one had to be an 'investment' loan. I did put 20% down but as far as I know that could be lower if other factors are OK with underwritter (income,  credit score etc.) . You will face higher payments though because of Principal Insurance and because investment loans have higher interest than residential. Banks got really tough and want to see a loooot of paperwork before they issue a loan so be prepared before you even apply. Make sure you have your bank statements,  tax returns,  business income statement all ready to go or your application process will take forever.

Hi. Very interested to hear some replies. I am personally not aware of any resource like that. If you find the answer, please share. 

Whatever you pick, keep your debts to a minimum and build up that credit score. A lot of my peers (late 20s, early 30s) can't get a credit card let alone apply for a mortgage because they screwed up their credit score while in college.

@AhsanKhan

Hi Ahsan,

I also live in Brooklyn, NY and i see the same picture you are seeing. NYC is just way too hot to find a cash flow positive property. For my 1st investment i bought a condo in NJ about 40 mins drive from Brooklyn. I got a pretty good deal with purchase price of $125,000 and a solid 12% cash on cash return. If you buy 3-4 such properties that income will cover your personal housing expenses and give you more flexibility on where you choose to live. The only thing to consider is multiple closings = more fees. But it might be worth it for a higher return. good luck!