All Forum Posts by: Jason Lee

We'd need to know the taxes, condition (which would affect capex, repairs, etc), and property management. Then to figure out if it makes more sense to sell we'd need specifics on the property (location, size, condition, etc).

How late are the payments and have you spoken to the tenant about it? Upon renewal you could add late fees but the laws have changed recently. The late fee is capped at the lesser of $50 or 5% of the rent after 5 days late. If you still think you need a landlord/tenant attorney just DM me and I can send you some names.

Take into account vacancy, capital expenditures, maintenance, and property management. If you end up with positive cash flow you can live with then you could consider keeping it long term. Most buyers I know that bought within the past two years (that didn't make a huge down payment) probably wouldn't be cash flow positive, especially if they have any vacancy at lease turnover.

This thread is 2 years old but to be accurate the threshold as of last year is 51% sold before a condo plan can be declared effective. That gives tenants all the power and will make these types of conversions next to impossible.

I wouldn't recommend anyone buy (unless it's distressed) with a time horizon of just 5 years. Even if prices appreciate moderately you could end up negative just taking into account the in and out transactions costs. Also keep in mind the tax abatement is an incentive for the developer and 5 years is a short abatement. You're planning to sell just as the abatement ends. What do you think happens to prices when taxes and the cost of ownership goes up?

Something doesn't add up. As you go further south and east in Brooklyn there are many listing agents that do not co-broke and in this case a buyer's broker will ask you to sign an agreement where the buyer is responsible for commission. It doesn't sound like that's the case here since he said it would help the seller (presumably by lowering the commission the seller has to pay).

Is this an experienced agent you've been dealing with? It sounds as though he's confusing who he has an agency relationship with with who he is getting paid by. He can have a client (you) but still be paid by his customer (the seller). Or, has he been around so long that he still thinks all agents (the listing agent and the selling agent (buyer's broker)) always represent the seller (this was typical a long time ago when there were no buyer's brokers). If he's suggesting the seller pays less commission if he represents you as a buyer's broker then it sounds like the former. 

There are a lot of good buyers agents out there. Find someone you like and trust.

You are negative cash flow $600 per month and now you're considering sinking another 150K into the property to make it cash flow positive? It makes no sense to try to keep this as an investment property.

NCB will not do a HELOC on an investment property.

First thing I would do, if you haven't already, is find out if your co-op has a max debt-to-income ratio and see if any refi or Heloc (if it's possible) pushes you past the max, or if your numbers have changed since you were last approved or with the purchase of your flips. If they are lax on rentals they might be lax with financials too. If not, it could open up a can of worms.

You currently have to have 2+ years experience to join Compass. Even then, the benchmarks are quite high.

Do you understand the new rent laws in NY? Have you seen what's happening to prices of large multi-family in NYC lately? If not, then I would start there. If you have, then you should review. On the bright side cap rates have increased dramatically over the last several months =D