All Forum Posts by: Jason Lee

When a co-op caps the LTV to 75% that typically means no additional financing (syndication, Heloc, etc) above the 75%. What they sometimes allow is gifting for the down payment from an immediate family member. Not sure how they would view gifting when it comes to a medical space though. Keep in mind you need the 25% down and the most co-ops are going to want to see at least two years' of carrying costs (mortgage and maintenance) in liquid assets post close on top (which can also sometimes be gifted). They will sniff all this out and will want verification of the source of funds for the down payment (bank statements, cancelled checks, wire deposit receipts, etc). If this is in Manhattan or prime Brooklyn or Queens then I think this is probably as liberal as it gets. As you move further out the boards tend to get a little less conservative but I don't think any of them will allow the additional leverage. 25% down indicates to me the board this board is already on the liberal side... it only gets more conservative from there. I would explore the gifting route if that's possible. Otherwise I'd focus your search on condo spaces.

Prices have appreciated pretty rapidly over the past few years and that has slowed/plateaued. Now is not a bad time to sell, lock in your profits and perhaps rent (the rental market is relatively soft right now in NYC). Or, you could stay put and then take out a pretty sizable Heloc and invest with it. You could rent it out and still possibly take out a Heloc on it to invest with (some lenders will allow Helocs on investment properties). You have a lot of options. 

I've represented rentals at this price point. You could maybe cut your cabinetry expense in half (or more) by using Ikea boxes and custom fronts from someplace like SemiHandmade, and work with a GC that has worked with Ikea to make it look custom. Aside from that your numbers look fine. How are the bathrooms?

There are lenders that will do Helocs on co-ops... might be more difficult since it's not owner occupied. But perhaps another way to use your equity for other investment opportunities.

I was looking into this awhile back. I couldn't get any clear hard and fast rules but if it's 6 stories and below, depending on the year built, it's probably wood frame. If you can visit in person it's often pretty apparent through how sound travels and the feeling under foot if it's concrete slab or not.

I'm a realtor and work in Manhattan and JC. Check out the Communipaw area of Bergen-Lafayette. Many new restaurants popping up on south/eastern end of Communipaw, a new coffee house (with the best cold brew!), etc. Light Rail is right there. Thousands of new rentals approved to the northeast and proposed development of the Liberty Science campus to the south. Amenities will follow. Reminds me a little of LIC before it exploded. I recently sold a condo at The Foundry and many of the end user buyers were from hipster nabes like Bushwick and Ridgewood Queens and looking to commute into Manhattan. Ultimately sold to an investor. I think there's a lot of upside there. PM me if you'd like to discuss further.

You should discuss this with your attorney. The closing date in the contract is typically and on or about date and can, and usually does, get pushed back by either side for a variety of reasons. 

Hi Angelica, I'm a realtor in NYC. For renting you typically need to make 40-50x the monthly rent. For owning most lenders will let you use 40-45% of your gross income on housing payments (mortgage, tax, common charges/maintenance) though I wouldn't recommend going that high. If you're looking at co-ops then most will want your housing payments to be below 28-30% of your gross income, and your total debt (housing, credit cards, loans, etc) under around 33-35%. Keep in mind co-ops will usually want you to have more post close liquidity too so while they tend to be priced lower than condos, they aren't necessarily more affordable. They're also usually much more strict when it comes to sublets so if you're planning to "hack" you have to take that into consideration. Since in the co-op you are technically under a proprietary lease you can, by law, have a roommate. Let me know if you have any other questions.

Hi Jared,

I'm an agent in NYC. You might already be aware, but if you refi the co-op will most likely have to give approval and if your LTV goes above a certain level they probably wouldn't approve. You don't mention what the apartment is worth now so it's hard to say without knowing how much equity you have. There are some lenders that will do HELOCs on co-ops but again, your co-op will probably have to give approval.

If it's not cash flowing great then it might not be a bad idea to sell and get into something with a better return. Is it in Yonkers? The market there seems to be pretty strong so if it shows well and is priced right it should sell pretty quickly.  Just keep in mind the seller closings costs (state transfer tax, realtor commission, co-op's closing fees). Good luck!

I was trying to search through the podcasts yesterday and was getting a little frustrated. This is amazing! Thanks!