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All Forum Posts by: Jacob Northfield

Jacob Northfield has started 7 posts and replied 16 times.

Post: Potential duplex rehab worth it?

Jacob NorthfieldPosted
  • Posts 16
  • Votes 2

Thank you for the additional questions, that's helpful.

According to apartments.com the average rent for this neighborhood for a similar 3 bedroom with a similar lack of remodeling is $1,052. This is consistent with what I am finding in my research on Zillow as well. As far as sales comps, the average price appears to be approx $114,000, but I'm less confident in that number, which is ok because I do hope to rent long term.

The reno is cosmetic and I will be doing much of it myself with help from family, and I will be able to save while I'm doing it in case I mess something up and need professional help. This will be a rental grade reno with middle grade new cabinets, hardware, and backsplashes in the kitchen. I'll need to pull up some carpet and refinish hardwood floors. The walls need to be painted and the bathroom needs love as well. The roof seems solid, the mechanicals are newer, and no glaring defaults with the property, but I do need to have it inspected and appraised still.

I cannot view the occupied unit and have only seen photos. But the plan is to add a contingency to the offer based on the second apartment. I'm also considering asking that we not close until the other apartment is vacant (this was recommended by my realtor). 

Post: Potential duplex rehab worth it?

Jacob NorthfieldPosted
  • Posts 16
  • Votes 2

Hey folks, 

I'm new here and researching SMF homes in Rochester (Edgerton) and I found something that might work for me, but I'm not sure if I'm thinking about this correctly. 

The asking price is $80k and I'm securing a conventional loan with an assistance loan for the down payment and closing costs. There is a tenant in one apartment paying well below market rate. The realtor suggests that I could rent it in current condition for $1,000 in this neighborhood and this checks out with the rents I'm seeing. Unfortunately, the existing tenant is in the process of being evicted for non-payment since June, though I can afford the expenses on a monthly basis without tenants, including mortgage, insurance, and utilities, etc, as well as savings for vacancies etc, so I feel relatively confident that I can manage if the eviction takes time or if I can't find a new tenant for that apartment immediately. 

The other apartment will be mine and I will be renovating slowly with cash to hopefully bring that rent up to $1,200 or so, however, I will be responsible for approx $650/mo if I only have one tenant while I fix up the other apartment. That being said, expenses at $650/mo will save me $500/mo on rent.

Any thoughts on this deal? I know it isn't perfect, but if I can renovate both apartments and raise the rent to market value then I estimate I will bring in at least $100/mo/door after all expenses. Should I take a loss for the time period it takes me to do my own renovations or do I ditch this deal? The renovations appear to be cosmetic.

Thanks!

Post: You Should Get Your Real Estate License

Jacob NorthfieldPosted
  • Posts 16
  • Votes 2

Thank you for the great post. I've been wondering about this lately as I'm trying to get into investing and this clarifies the benefits. The only thing I'm really curious about is how to get sponsored by a broker. In NY one of the requirements for licensure is  sponsorship by a NY licensed broker and I'm wondering if this is as easy as networking at meetups etc, or are there other ways I need to go about this? Thanks again!

Post: Starting with low money down

Jacob NorthfieldPosted
  • Posts 16
  • Votes 2

Hi Scott, my apologies if my post lacked detail. What I meant to say is that I have been preapproved for a first mortgage and potentially an assistance loan which will allow me to pay the closing costs on my first home, which I would like to house hack. And yes, it is a loan so I would have to pay it back. I'm wondering if a second loan makes it too risky of an investment. Thanks!

Post: Starting with low money down

Jacob NorthfieldPosted
  • Posts 16
  • Votes 2

Hi all! Thanks so much for hosting this forum. I'm new to investing and am just scratching the surface but there are so many great resources here that I'm optimistic I can do well and I'm excited to learn as much as possible. 


I'm in Monroe County (Rochester), NY and there is an organization here that offers assistance loans for down payment and closing costs up to $40k. This loan would have the same rate as my primary mortgage, which today is above 7%. I'm unaware of how to afford a purchase right without this loan as I don't qualify for grants and I don't have enough for closing costs otherwise. So, the question is, do I take a risk and borrow the money for my first house hack now or do I slow down and find a partner who can assist where I don't have the cash? I feel like both options have pros and cons so I'm trying to learn what I can to inform this decision. Any thoughts are appreciated! 

Post: investing in Rochester NY?

Jacob NorthfieldPosted
  • Posts 16
  • Votes 2

I don't have any experience but as a new investor who is also new to the city it seems that I should be paying very close attention to location. Do you know what neighborhoods you're interested in? Feel free to reach out if you want to compare notes!