All Forum Posts by: Eric A.

Thanks. So is it reasonable for me to take all the tax benefits for me, as well as all the cash flow from the rental unit? Does my partner merit 33% equity ownership, or should that number take a haircut for the fact that I'm servicing the debt and managing the tenants? What about the fact that I'm paying a large closing cost (~35K) due to the fact this is NYC? Properties here generally don't cash flow, so I'd probably be paying above market for my unit when compared to rents for a similar unit. My instinct is that my partner should take a haircut on his equity but not sure how much. Perhaps 25% ownership is a good starting point for negotiations. Anybody else done this type of partnership?

Pretty sure 10% down is the best you're going to do outside of FHA. Trust me I've been looking for a while. You shouldn't be afraid to do an FHA though. Yes the fees are expensive but most of them can be rolled into the loan and besides that's the cost you pay for putting so little down. HTH.

Thanks Adam K. That's is very helpful. Yes I realize you have to calculate expenses accurately for each individual property that you analyze, but I'm just looking for a way to ballpark it so I can filter through the huge volume of properties out there and only do a full analysis on a handful. Interesting point about most seasoned investors here only buy off market. I've been wanting to do that. I guess I need to subscribe to propertyshark for the lis pendens alerts and then start mailing. Does anybody else have any rough estimates in their experience? 25-30% sounds more reasonable but I suspect buying listed properties here are still going to be hard to cash flow regardless.

What do the numbers look like? Income, expenses, NOI, cap rate, cash on cash, etc? What neighborhood in queens?

Question for all the seasoned NYC / Brooklyn / Queens multi-family buy and hold investors out there. When analyzing multi family properties in our high-cost area, what rule of thumb or percentages do you use for estimating operating expenses?

I know the 50% rule is a favorite of many BP members across the country, but I find it hard to believe that in high cost areas like NYC or San Francisco, where a 3-family property can easily gross 100k in rental income per year, that 50k of operating expenses per year is a normal or reasonable estimate.

Property taxes on NYC multi-families is actually pretty low (like $300 per month), and insurance is also pretty manageable (conservatively $200 per month).Additionally, vacancy is generally very low here, at roughly 3% or less.Am I to believe that water/sewer/heat/maintenance/vacancy will account for over $3,500 per month / or $44,000 per year over the long term?I find this impossible to believe.

I’d like to hear a discussion from NYC or SF multi-family operators and what your experience has been and what a realistic expense estimate is.I’ve been using 35% in my own back-of-the-envelope projects, and to be honest, even with this lower expense estimate, I have yet to see a listing that cash flows positively with 80% financing. Thoughts?

Thanks for sharing Constance Kang . Pretty much confirms my suspicions. I went to one of their free seminars a year ago where we were led to believe Robert would be speaking. Instead we got some smooth sales dude who had hit rock bottom and is now "rich" because he took on debt to do a RIch Dad program years ago. There was also a guy who pitched their stock option trading program. I must admit their sales pitch is effective. I was on the verge of spending the $300 on the 3 day program but due to a hunch decided against it. Something about how pushy they were being made me suspicious. I also noticed what you noticed that most of the people rushing to spend money on the 3-day program didn't seem college educated or very financially savvy at all. What a shame, because Kiyosaki's original book was full of such great wisdom to live by. It just seems like the guy tasted a little bit of fame and success and decided he could make more money with these get rich quick programs and ripping people off, than investing in real estate itself. It's basically Trump university. Too bad.

Hey guys I actually have the same question. I was recently approached by a friend who is interested in partnering with me on a multi family purchase in NYC Brooklyn to the tune of 50k towards the down payment. I'd put down let's say 100k and also pay closing costs as well as qualify for the loan personally and make all mortgage payments. For simplicity let's say the property costs 1mm and I will be owner occupying one unit while renting out the other(s). Can you seasoned investors let me know the fairest way to structure such an arrangement? My friend's main motivation is the appreciation upside, not so much cash flow.

I'd like to follow this thread as well.

I'd like to attend. Is there a sign-up somewhere?

Chris May am I missing something? Why not do an FHA loan? You can get an FHA loan for up to $1.2mm in high cost areas for a 4-fam and only put down 3.5% as long as you owner occupy. The only catch is the pesky PMI/MIP but your paying for the benefit of so little out of pocket.