All Forum Posts by: Account Closed

@Nate Monson everything you said isn't incorrect - but when I"m running numbers I make sure I have everything incorporated into my spreadsheet, I want the absolutely worst case numbers possible. I'd rather be safe than sorry and that's exactly what I tell my clients too, most of the investors that are looking here are obviously not from within the same location they're looking to invest into - so those maintenance costs are kind of a necessity. Regardless - you're not wrong that it's not hard to find a lender to do less downpayment, but as I mentioned - i want worst case numbers. 6% closing cost is what I've noticed while using homestead funding - they've always been quick to close loans - but you end up paying for it. Unless you're doing units more than 4, you'd be losing money using a commercial lender because they're looking at lower terms. 

@Alison Walden if you're investing those numbers are slightly off because almost all reputable lenders require 25% down. Mortgage payment with taxes and insurance is 1459.80/month. Annual debt services is 17500, NOI is 23000, yearly its making the difference aka yearly its making $5500.

@Nate Monson as an investment property your down payment needs to be 25%. I’ve noticed closing cost to be around 6% if the purchase price. So your cash to close is a tad off. You’ll have lawn maintenance and snow maintenance as well. Lawn is around 30/month for 4 months, snow is per fall or per season and can be around 700/ season. If you have a multi unit legally tenants cannot be responsible for those things and landlord has to do the maintenance.

That’ll bring you below 1k. Cash flow is cash coming into pocket post debt services. Cash on cash is the amount of cash required to close divided by annual cash flow.

@Nate Monson I respectfully disagree with your cash flow analysis. Albany market is saturated with duplexes and multi family homes and I’m an agent here just like you and own investment properties of my own that I manage.

Most of these homes are very old and sellers are trying to divest and get 225+ a two family. No home is going to cash flow $1000 / month at 225+ purchase price in Albany.

The student rentals per bedroom range anywhere from 325/month -650/month.

If you’re charging 650 a bedroom you better have the entire home updated from bathroom kitchen to windows and everything looking 21st century because most of these college students don’t want to settle nowadays ebcause it’s not like what it used to be.

Like most rentals here your average rent per bedroom is around 450/ month. For these expect to have 5% monthly repair and maintenance budgeted , 5% for capex, utilities are generally on the tenant, trash and water is on owner. Trash is 90/unit / year. Water is an average of 400-800 yearly depending on usage and whether or not you provide washer and dryer.

This above information is for whoever is looking for realistic numbers based on a investor who is getting his hands dirty and in the trenches with student rentals.

Message me if you want more information.

Also this does not account for any property management. There are tons of property management companies that focus on student rentals. Very easy to come by and expect to dish out a minimum of 8%.

@Matt Whitermore congrats on your move to the new brokerage - good to see you getting out there and learning about the new area. The burg is a no go, there areas you just don't go and buy unless you're going in to buy a block and rebuild...

@Thomas Hartman I"m an agent and an investor in Albany - I can show you the ropes if you want at no cost. I went through the information posted here and some of the information is false...as in buying a 2 family between 50-150k. For starters thats a really wide range, secondly the amount needed to purchase that much is tad more - depending on how you buy..in your case seems as if you wouldn't be living in it...and if you go the bank route you need a minimum of 20% down + closing costs. 

Message me and we can continue this conversation, I have a bunch of listings I've analyzed for clients and maybe one of them will work in your favor. 

Hey - yes we have a meet up first Tuesday of every month at Albany Pump Station. Message me if you want more details.

@Garreton Smith I'm a rental property investor in Albany NY. Message me and I'd be happy to help

@Michelle Phelan does it need to be in person? I think you're looking for a financial advisor more than an accountant.

@Donald DiBuono

Hi please reach out to me and I can provide you with two contacts.