All Forum Posts by: James Bavaro

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey everyone, 

25 year old Orthopedic Surgery PA in Staten Island, NY, looking to garner my first investment in the world of real estate. I had been looking for properties around the area I currently live, but very few make sense in regard to the numbers given the current state of the economy. So, I came across this property which is by the university that which I attained my masters in medicine. 

Purchase price: $140K

% Down: 25% (I am considering pitching the investment to a friend and making this a cash purchase - any advice regarding this decision is much appreciated!)

Currently occupied by a section 8 tenant on a year to year lease. currently paying $1805

Cash flow = $800

- I left out some CapEx expenses in the report, as this is a newly renovated home, but will account for everything once I dive deeper into this potential investment. Would have to consider the expense of a property manager, as this property is about a 1-hour drive from my current location.

- Seems to be absent of any major internal issues. New hot water heaters + roofing. Valid CO. 

-  Low-income neighborhood (lots of section 8 tenants)

- Very close to hospital and nearby highschool. About 10-15 minutes from the nearest University and about 20-25 from the University I attended.

Thoughts on this property as a first investment? Any and every form of feedback is much appreciated. Welcoming the good, the bad, and the ugly!

Thank you.

 will do, and thanks for your feedback! i really appreciate it. 

 wow! this is awesome feedback. i really appreciate your time. will most definitely take this into consideration!!!

 got it! thanks so much

 good to know, and thanks for your feedback. where do you recommend i find this information? i assume DOB 

Hey all,

I have an offer accepted for a two-family property that I plan on utilizing as a rental. The property illicit great numbers (ROI, cash flow, sale price, etc.) Just before signing my contract, however, the seller disclosed that there is an open permit on the home to make the property a legal two-family. The permit was opened in 2005, and the construction was (allegedly) completed shortly thereafter. However, it seems like the file was never legally closed.

We've tried negotiating with the seller to deliver the property with a closed permit, however, he will not budge. I did negotiate for a lesser sale price on the home, and won. So, if I were to invest in this property, I would have to close it myself. I completed some due diligence - I spoke with an architect who gave me a quote for about $12K to close the permit. I then spoke to the department of buildings (DOB) who told me that it will only cost about $200 and some time filling out paper work to close the open permit. Two opinions on different extremes...you can imagine how much of a standstill I am at currently in my decision making regarding moving forwards with this property. I feel as if this investment might be a gamble with this open permit, considering it most likely has to pass inspections before the permit is closed. I am afraid that once the house is closed on, and inspections are made from the DOB that they might find something wrong and open a costly can of worms,

Could anyone offer some advice and/or words from experience for when dealing with open permits?  

Hey all,

I have an offer accepted for a two-family property that I plan on utilizing as a rental. The property illicit great numbers (ROI, cash flow, sale price, etc.) Just before signing my contract, however, the seller disclosed that there is an open permit on the home to make the property a legal two-family. The permit was opened in 2005, and the construction was (allegedly) completed shortly thereafter. However, it seems like the file was never legally closed.

We've tried negotiating with the seller to deliver the property with a closed permit, however, he will not budge. I did negotiate for a lesser sale price on the home, and won. So, if I were to invest in this property, I would have to close it myself. I completed some due diligence - I spoke with an architect who gave me a quote for about $12K to close the permit. I then spoke to the department of buildings (DOB) who told me that it will only cost about $200 and some time filling out paper work to close the open permit. Two opinions on different extremes...you can imagine how much of a standstill I am at currently in my decision making regarding moving forwards with this property. I feel as if this investment might be a gamble with this open permit, considering it most likely has to pass inspections before the permit is closed. I am afraid that once the house is closed on, and inspections are made from the DOB that they might find something wrong and open a costly can of worms,  

Could anyone offer some advice and/or words from experience for when dealing with open permits? 

 thank you!!! i appreciate this advice and will take it into account.

Hey everyone, 

About to be a first time RE investor here, as I just got an offer accepted on a multi-family property. My plan is to target section 8 renters. The property is a 2bed/1bath over a 3bed/2 bath duplex. I've completed tons of research/due diligence. The numbers work, as it cash flows nicely given the section 8 rental standard payments for the zip code of the property. 

I had just come across a section 8 strategy video on youtube of a very well-known and successful investor who actually recommended not using multi-family properties as housing for targeting individuals with section 8 vouchers for various reasons...and now I'm afraid!!!

Could anyone provide some insight/advice? Any feedback is much appreciated.

Thank you in advance!

 Hey Abel,

Thanks so much for your feedback and advice. We did not yet get the property at 525k, but is my initial offer. Still waiting, as there is a bidding war occurring. Hoping for the best!

Thanks, again!