All Forum Posts by: Gaspar J. Cruz

Hey BP,

I have about $90-100k saved up to buy a place of my own (possibly more, I’m closing on selling my father’s building in Sleepy Hollow, but I have to pay back the bank and my other siblings). I wanted to buy a multifamily in my hometown but the prices are ridiculous, the only ones I can afford are the ones that need gut renovations and aren’t move in ready and even those are going for 250-350k. Should I look at the town next door and get something that’s move in ready but just needs cosmetic work? 

One appealing aspect of staying in my hometown is that there is a new development of the downtown area which is super exciting and I don’t want to miss out on that opportunity. 

P.S. - The person buying my building wants me out by closing, but my gf’s family said they’d take me in as long as I need to. 

Hey Thomas,

Since I’m completely new to this, I have a some questions.

What should the rent to value be if I were to keep the property? 

Is the rent to value calculated through net operating income? Or gross?

Thanks for your assistance!

Thanks Abel, I appreciate the kind words, and the advice. If you can suggest me a lender that would be great.  

 So I can contact the bank directly and let them know that we can assume the debt? Because the house certainly produces, it would be a shame to just sell it. 

Hey I hope some of you guys can help me,

I recently graduated college and have limited work and credit experience. My parents both passed away in December and January and they left behind a commercial property in Sleepy Hollow, New York. The property is 6 units and the rents are substantially below market for 2 bedrooms in this area. An issue that has plagued this whole situation is that when my parents got sick they were behind on their mortgage and the bank wanted to foreclose the home. Last time my lawyer checked the balance it was about $400,000 with lawyer fees included. My younger sibling and I want to keep the property and possibly buy out my other two siblings from another marriage since they have no interest in keeping the property. I calculated that their share each would be around $87,500 each. The total amount of the loan would be about $575,000, which is less than the median average of single and smaller multi-families in this town. The building is worth 750k to 800k. I have no problem with the tenants in place right now and everyone is month to month. The net operating income right now is about $4,300 a month with the current rent. If I increase the rent by $200 it would increase to about $5,200 a month. I live in one of the units and make about $3000 a month from work. I have about $60,000 saved up for repairs. 

I’m clearly emotionally attached to this property but I feel like it’s gonna be a gold mine when the new development up the street is finished. 

Where and how can I find any resources that can help me? 

Thanks,

GJC