All Forum Posts by: Gal Alberman

I know everyone is talking numbers - revenues, expenses, cap rate etc. But this is a 4-plex correct? Do you not check on recently sold comparable properties first?

Cheers... Immanuel

Hi Immanuel, yes it's a fourplex.

To your question - first, I tried but didn't find any relevant comparables for this property.. Second I'm not looking to live there or flip it, so only the numbers will determine if it's a good deal

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Originally posted by @Ryan H.:

@Gal Alberman Your post lists the total annual income as being $42,800, but I think perhaps you meant that the total is $52,800. If so, you may want to edit your original post to correct this.

You have a $2,000 expense listed for a "super." Can you elaborate on what this is for?

With NOI of $25,940 an 8% cap rate would suggest an offer of $324,250 (without taking into account the deferred maintenance of $15,000 you mentioned.)

I think the question is whether the market in Irvington supports an 8% cap rate.

Hi Ryan,

yes I had a typo.. It is $52,800.

Anyway I'm from NYC and over here we use a superintendent to take care of garbage, cleaning and snow removal. It's usually around $2,000 yearly.

You got my question right. So 8% sounds about right.

Thanks!

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Originally posted by @Noel Challenger:

Hey Gal, I see that you are very conservative on your numbers and that can lead to some hiccups later when you buy the property and you're paying more than what you accounted for initially. Irvington has some of the highest tax rates in North Jersey, I would account for more money just to set aside for property taxes. How much are the current owners paying in taxes now? Same with water and sewer, you pay water by unit which is around 50/month per unit so you'd be paying 2400/year.

Also I noticed you didn't mention any debt servicing so I'm assuming you are paying cash for this property?

Hey Noel, all of the numbers I've put up are estimates by owner on the initial phone call. Of course there will be an in-depth check of all documents and bank statements or tax returns for the property. When numbers will take an accurate form I'll update the NOI and my offer accordingly. What I'm trying to figure out is an appropriate cap rate to multiply the accurate NOI with. I want to see if me and the owner are even at the same ballpark

About debt servicing - I will try to get financing but will figure this part out after determining the appropriate price

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Originally posted by @Russell Brazil:

Originally posted by @Gal Alberman:

One question for people in NYC who KNOW (rather than assume) - can a landlord demand a minimum credit / income to qualify tenants? I don't mean choosing the most qualified tenant, but making a specific minimum requirement - let's say a 650+ credit or income x40 rent?

Not only can you do that......you absolutely should do that, and everywhere. The easiest way to protect your self from a fair housing claim is to have a set of WRITTEN criteria, credit score, income, etc....and stick to that criteria 100%.

But also, your criteria should be realistic. You want to make sure the average renter you want passes your criteria.

Yes, this is what I know. Thing is that a friend of mine has gotten a few phone calls in the past few days from section 8 renters saying that it's not legal to ask for the credit since the rent is 100% covered by the voucher. now I think it's BS but he says he got few calls like these this week saying *exactly* the same thing, like they have been told otherwise.. maybe NYC specific fair housing or something

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Hi all, would like to hear your opinion on this deal:

- Irvington NJ, at the southeast part

- 4 family, didn't see the place yet, owner says it's in "ok" condition meaning no fixing required yet. all units are month to month

INCOME: 3br ($1250) + 3*2br ($1050 each) = $42,800

EXPENSES (rounded):

Tax - $10,000

insurance - $3,000

water / sewer - $800

common electric - $500

heating and electric are seperated

my additions:

super - $2,000

maintenance 5% - 2640

vacancies 5% - 2640

management 10% - 5280

TOTAL - $26,860

NOI = $25,940

How much CAP would you assume for this deal to determine the offer (let's say it needs 15K in update)?

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Attention NYC rehabbers!

Opportunity to make over 140K on this big 2 family:

2 family frame, detached
4 BR over 3 BR
full unfinished basement with windows and street entrance can be converted into a full unit or be attached to 1st floor
every floor is 20*50 ft, totalling over 2,000 sqft (not including the basement)
two minutes walking to the 2 and 5 train
AS-IS value is 500K+
house is in relatively good condition! needs minimal work (link 1 - 1st floor), (link 2 - 2nd floor) - all amenities work properly, some of the floors where replaced recently. most work is cosmetics - painting, sidings, kitchen update etc. total rehab estimated at 50K max .
total cost for the project is around 525K-535K
ARV is 680K-740K (actual recent sales - link)

NYC solid investment.

1 Vote

Small house, big lot (10,000 sqft) needs TLC

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Small house on a big double lot (13,000 sqft)

house needs TLC, can be suitable for multifamily development

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Renovated four family in Soundview neighborhood in the Bronx.

Brick building with total 3,200 sqft, semi-detached with a shared driveway.

comes fully renovated and vacant, except for 1 occupied unit.

New gas boiler

***

Monthly Income:

Unit 1R: Occupied 1BR. Tenant pays $1,650.
Unit 2R: Vacant 1 BR. average rent $1,600-$1,700. city programs pay up to $1,636.
Unit 1F: Vacant 2BR. average rent $1,700-$1,900. city programs pay up to $1,878.
Unit 2F: Vacant 3BR. average rent $2,200-$2,400. city programs pay up to $2,394.

Link to city payments:

1. https://www1.nyc.gov/site/nycha/section-8/voucher-...

2. https://www1.nyc.gov/assets/nycha/downloads/pdf/Se...

***

Yearly Expenses:

Tax - $9,306
Insurance - $1,856
Water & Sewer - $1,235
Common Electric: $562
Heating - New gas boiler installed Jan 2018. bill for Jan 18 - May 18 - $844 (total 4 months of winter)
Super - $2,400 - does garbage and recycling, snow removal, cleaning of hallways once a month.

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All Forum Posts by: Gal Alberman

Gal Alberman has started 8 posts and replied 17 times.

Post: 4 family in Irvington NJ

Post: 4 family in Irvington NJ

Post: 4 family in Irvington NJ

Post: Discrimination against section 8

Post: 4 family in Irvington NJ

Post: Discrimination against section 8

Post: 140K Profit - off market duplex in the Bronx, NY (ARV 700K)

Post: Small SFR on a big lot, $ 170,000

Post: Small SFR on a double lot

Post: Renovated 4 family in the Bronx, NY