All Forum Posts by: Eric Hajdu

@Henry Ko

Congratulations on planning your third purchase, you should be ok to do a traditional 30yr fixed on an approx. $2mil 2 fam in Brooklyn. I would strongly consider a duplex or triplex over a rental unit. The lender will like that you’ll have rental income from the new purchase even if you don’t plan on renting it out.

I just purchased a multi family in BK last week and the lenders don’t care too much about how much equity you have in other properties, it really comes down to tax returns and showing robust income.

I haven't used Express Capital on a deal yet, but I've had conversations with them over the past year in regards to a few purchases.  I have been very happy with their communication very transparent, low pressure, and they seem to put the client's interest first.  I was looking at a deal that wouldn't cash flow great, other lenders we're on board with doing the loan, but Express wouldn't do it, as they thought it wasn't smart for my goals.  I am talking to them now about getting a construction loan for an upcoming townhouse project, very competitive terms.

@Nicole Sharpe

Congratulations on your decision to move to BK, we’re raising our children here and wouldn’t live anywhere else. In regards to your post, if you house hacked in any of those areas, you might be able to cover your mortgage, but cash flow would be tough.

There is a large difference of availability and price amongst the various areas you mentioned. For instance a property in Williamsburg is as at least double a similar one in PLG. Beyond that, there is large price differences within the areas themselves depending on location.

Also, I’m not sure if your doing public or private school, but all the areas you mentioned are not very strong school districts.

Lastly, I think with your financial profile you’d be fine to purchase a the type of property your looking for with 20% down. You and your family would take 2 floors and rent out 2 units. You are very smart to do this, we went the luxury condo route, and in hindsight it would have made so much more sense to house hack.

I’m in the process of buying a multi family home in Cobble Hill Brooklyn as an investment, feel free to message me with any specific questions.

@Amit Gera

Okay got it, I’m in contract on a town house in cobble hill brooklyn. We are going to do a full gut, extension up and back. The construction cost are coming out to about $350 a sf, not including demo. That number can obviously fluctuate wildly with material choices. Best of luck, keep us posted!

Amit,

Congrats on you purchase, when you say "ground up" do you plan on demoing the current structure, expanding, or just converting?  I have a few friends who have done condo conversions in Brooklyn, and it's an extremely complicated process  that has several stipulations.  If you clarify whether your are building or converting, I could help you put some loose numbers to your plans.

@Jonathan Cevallos

I’m working with a Manhattan based attorney to close on a seller financed townhouse in Brooklyn. I’ve worked with her before, and have been very happy with the service/communication. Good luck!

Rosalind Kwast

www.kwastlaw.com

I would suggest putting a large effort into finding a great off market deal.  This is really the most significant contribution you could make to an accomplished investor, and would essentially cost you nothing.  Best of luck in your journey!

Will, unfortunately 50k won't be enough for even 10% down on a studio apartment in any of the Brooklyn neighborhoods you listed, you can't even find a parking spot in these areas for under 100k.

I agree with the other posters that you will have to look outside of NYC, most likely more than a hour away.  I don't know anything about your finances/work life, but something to keep in mind with financing is that people we hear about getting huge loans at 2.5% interest rates show tremendous income from their job.  My suggestion would be to look in a market where your 50k would be a meaningful downpayment, build your equity and come come back to NYC when you have more options.

In regards to your question on class B Brooklyn neighborhoods, you should look for areas that provide transportation options to Manhattan.  If you purchase in an isolated area with no trains, your upside will be limited.  Best of luck in your search!

Hey Steven, NYC is a huge city made up of 5 boroughs, and you can certainly do it in several areas.  I can't speak to Long Island, as I only invest within the city.  There are many opportunities in Brooklyn, Queens, and the Bronx to buy a three family and live for free in one of the units, especially if your okay taking the top floor one bed while renting out larger units with outdoor space.

In Manhattan, I would say it's nearly impossible to house hack in any traditional sense, and Staten Island has some options, but in my opinion you would much better appreciation/rental demand in the other boroughs.  

All that said, the cost of entry is obviously going to be higher here, with the baseline even in the outlier areas being close to a million.  What you really gain by investing here is capital appreciation in your property that could lead to some great refinancing down the road.  Best of luck in your search!

I am in the process of buying a townhouse in Cobble Hill Brooklyn, and have been putting together a budget for a gut/addition of square footage, and I'm at right about $350 psf.  As Alexander noted in his post, so much if it depends on the property your renovating and the logistics.  For example, you can park a dumpster in front of a townhouse on a residential street, while gutting a co-op could literally take months of planning/approvals.

Best of luck in your future project!