All Forum Posts by: Ian Radcliffe

The ARM question was just a side question. I was curious as the rates seem to be up to 2% lower (in some cases) so makes the re-payments nicer haha. The gamble is I would go bankrupt if they went to 10% so I guess I am answering my own question that at around 4.5% maybe I should lock it in for 30 years.

I just wanted to see what rates were possible for these circumstances as our bank quoted 4.4% so wanted to know if that was competitive. No point in jumping in if I can get it for 4.2 or 3.9 etc.

Ill take a look at the link you put up. Thanks.

I am interested in Bensonhurst

I was looking online for mortgage quotes but quickly found that every single site requires email and contact numbers. I hate getting spam and unwanted phone calls so I thought I would call upon the bigger pockets community to get a ball park figure and idea of best companies out there. You lot are investors so you know the best deals :) .

I am in New York and have 20% down on ~$650,000 property (1st primary residence / multi family home, credit score of upper 700's). What are the best 30yr rates in your opinion.

Would any of you risk ARM's as I don't anticipate paying off the property for at least 20 years. Of course I know ARM rates could in theory go up to 10-12% but is that likely in next 20 years? Is it worth the gamble?

Thanks

Thank you all for your responses. This is a very nice forum. I have been on forums before where people are just very rude & sarcastic to simple questions so it is great to not be afraid to ask anything. Great site too.

OK I think I have got it.

My friend bought a house here in Brooklyn in 2011 for 500,000 and rented for $3,000
So his CAP rate was 7.2%
Mortgage & Insurance = $2700
So Cash flow = $300

Now with $200,000 renovation, some good luck with this areas price increases over last few years it is valued at around $1,000,000
So now his CAP rate is now 3.6% but of course cash flow is still $300. So I see CAP rate is more like a marker. It now shows that his house is more desirable to rent than before and of
course it also shows he could possibly increase rents slightly too.

So if i'm correct I should first work out if the property will gain me cash flow then see what the CAP rate for me at that time would be and if its in the 5-7% region it will probably be able to be rented but if its suddenly turns out in my calculations to be 15% I should not jump up and down for joy but simply think the rent expectation is too high or I wont be able to rent it continuously at that desirability rate in the future.

Is this a better way of looking at it?

@Matt Payne  thank you for response. I know this is cheeky but would it be possible to come and speak with you over a coffee in person one day about pros & cons for someone like me buying here in NYC?
I live on the D-line so can get in any time that suited you, before work if you are an early bird or lunch time if you have a quiet day maybe. It doesn't have to be next week. 

Let me know. Thanks

Hi everyone,

My name is Ian. I am new to biggerpockets and also to real estate investing. Nearly 40 and need to get serious for my retirement. Hoping to be able to make some good investments over the next 20 years.

I watched the video by Brandon Turner on the 50% rule and it seems I was lucky to do so as I may of made some big mistakes? I was planning to buy a multifamily home in my area but the CAP rate would be about 5% around here and it seems (I do not know if it is true) from his figures you can get up to 15% CAP rate around the US. In the UK where I am originally from in a good area with good rental ability the CAP rate is between 5-6%.

Now my question is as a novice investor what do I look for to best build a stable portfolio?
Do I start with 3 or 4 low value homes ($100,000 ish) out of NYC where I am from or is it best to invest locally where there may be more capital appreciation but where the CAP rates are lower and property prices are higher?

What CAP rate should I be aiming for if I don’t want to sell the houses and Just want to obtain a lasting income from them long term?
I appreciate the answers will be different as there probably will not be 1 perfect scenario but there may be things I should not do that everyone agrees on. Plus I would like to know what you would do if you were investing for the first time in 2014.

Thank you all for your help in advance