All Forum Posts by: Gil Pang

@karoline kaon , this is upstate.  no way in queens will i get anything for that price.  if i set up a cardboard box on the sidewalk i can probably sell for 80K haha.

@Adam Daneff , i may just go w/ a CU at this point and start building a relationship w/ them so it may make my future deals smoother.  All the big banks i know , BOA, CITI, etc , do not want to deal w/ small loans like this.

@Steve Kontos  Thanks for the input
@Adam Daneff can you elaborate on what a bank of CU is?  do you mean Credit union?  What does a credit unions program look like? 30 year financing?

Hello BP Community,

I'm currently in the process to purchasing a 2 family home for 37K.  (probably will be appraised in the low 40s)

I'm currently putting 25% down and looking to finance the rest on a 30 year loan. ( roughly 4.5%)

My friend who is a LO told me why not try to pay all cash for it and try to save on closing cost?

If i were to gather funds to purchase all cash, this would leave me tight and not much money for savings or making the necessary rehabs.  

What is my best route to take?  

I was thinking, buying all cash. Then put a HELOC on the house to do repairs and make a move on a second house.

Or just stick w/ my 30 year financing.

im open to any other ideas.  Thanks in advance!

Just to give you an update, seller accepted by 37k offer! Guess the waiting game paid off!

@Patti Robertson  Yes.  Thank you very much.

is there a way to incentivize sec 8 tenants not to mess the place up?  

@Peter Mckernan  Thanks for the input.  i agree, def make your money going in.  as much as i want to get started, i don't want to rush into my first purchase where i can't refi and cash out a year later.  the area is illliquid as it is already.

Hi all,  

i'm putting in my first offer on a 2 family home.  My goal is to buy and hold for cashflow.  (possible go section 8 route).

seller list price is 45k , i put in offer at 35k.  sell said to meet in middle at 40k.  I countered at 37k and i was told 40k is sellers bottom line.  im going to wait a few days and see if they get desperate and counter below 40k.  

Assessed value on home is 40K but there is some repairs/rehabs that need to be done from the initial visit.

- unit 1 ( 2 bed , 1 bath) currently rented for $625
 - unit 2 (3 bed , 1 bath) vacant (aproxx 750) (but section 8 , possible 1,071?)

one of the furnaces should be replaced as its quite old (assuming 1.5k for furnace & labor)
paint job needs to be done throughout the whole unit of unit 2 (assuming 800/1k)
outside of the house will need a new paint job (assuming 1k)
front porch area is pretty old (500 - 1k) - may leave it as is if i can just patch it up

**not to mention probably little things i will need to do to get it section 8 ready**

so my questions are:
1.  Since i'm a buy and hold investor (how much weight do i put on entry/purchase price)?
2.  how much weight to i put on future equity appreciation ( this area has not appreciated much in the past 5+ years)
3. COC ROI is pretty good even at 40k purchase price
4.  if fair market rent for a 3 bed is 1,071 on the website, will section 8 definitely that much?

im a newbie so excuse some of the stupid questions.  thanks in advance!

hi, can you elaborate on the the below from your blog?  im curious how that works.  also can you advise on other added benefits for section 8?  i've only heard negative/nightmare stories. im looking to buy a home soon and make it section 8, so i would like to learn as much as possible.

thanks.

"Have you had any luck in finding an insurance company that will provide you insurance that will kick in in the event your tenants lose their jobs? Me either, but that’s just one of the benefit that SEC 8 offers landlords who participate in the program."

@Matt Riggi where im looking , i don't think the underwriter is going to approve me for a FHA loan. haha. i work in midtown. i might have to go conventional for now if its too far and will possibly move into hard money.