All Forum Posts by: Jennifer C.

Congratulations on ignoring the naysayers and going with your gut. I really like the design choices you made in the house. I think you should apologize to your designers though. Bright yellow would have been great!

Hello BPers.

I'm applying for a HELOC so I can start investing. When applying, banks ask why you are taking out a HELOC. While I will also use the HELOC for things such as my son's educational expenses etc, that won't be my main reason. In your experience, do banks look more favorably upon your application if you specify a particular reason for the HELOC? Also, I'm finding that the advertised rates and the rates I'm quoted are considerable different--at least through one credit union that I'm applying to. This can't be because I have bad credit, I don't, and they haven't run it yet.

Jennifer in Brooklyn

Gee. It appears that we are neighbors in PLG. 

@AdamK

What/where did you buy in BKLYN that makes sense? I'm seeing things in Bushwick/BedStuy that could have flip or long-term potential. Truthfully I'm itching to do flips.

In NYC landlords ofter pay the heat and the electric that controls common-area lights, the boiler and the hot water heater. These electric costs are also billed at a commercial rate even in small unit multi-residential. Tenants pay their own electric and cooking gas. I have seen buildings that have been renovated with separate boilers for each apartment, but I would say that is less common.

@Charles Worth 

Thanks. Sounds like more good advice. Yep, I was just doing the math on the HELOC and it looks good. I'd love to hear about your experiences and hear about pitfalls to avoid. I'm very unclear about what markets to look to. I wish I could do more hands-on work here in the city. It's fun for me.

Originally posted by @Brie Schmidt:

@Jennifer C.

 - Welcome to BP!  I cashed out of some equity last year and went into a cash flow market buy buying 15 buildings in less than a year.  I would first establish a relationship with a TK provider / partner you trust.  IMO the most important thing is finding a TK provider / partner you can trust.  The market you choose is secondary.  I say that because a great PM in a ok market will outperform a ok PM in a great market.  I would start small, buy 1 property with them, 6 months later buy another.  After a year if things go well I would sit down with them and put together a short term goal.  Figure out how many houses you need, how much it will cost, and pull out that cash and use it to leverage properties.  

 This sounds like really solid advice Brie. Thank you so much.

Originally posted by @Victor Menasce:

Jennifer Castle as I'm sure you've heard, short term rentals like AirBnB are under assault by the city for non-payment of hotel tax. If the city wins (good chance) the short term rental industry will crumble. I know there has been talk of a negotiated settlement with AirBnB. But I'm not sure of the status.

Before you borrow additional funds, make sure that your business plan is built on a sustainable foundation. It could turn into a house of cards if you're dependent on the AirBnB income for survival.

Thanks for your advice Victor. I'm pretty risk-averse, so I won't make an plans based on the Airbnb income. If the city does get their way, however, Airbnbers who can charge enough will still be able to make it work--and I'm in that category. Also, because I'm in an owner-occupied 2-family, my Airbnb is completely legal. 

Hello BPers,

I'm a former real estate agent. My current job is taking care of my kid and trying to make my house make me more $. My goal is financial independence for my family in 5 years. We live pretty simply, so we don't need huge money to be financially independent.

I own a two-family home in Brooklyn, NY. I've made it pay its mortgage and expenses this year by Airbnbing the second floor apt. We live on the first floor.  Thanks to crazy appreciation here it's probably worth 1.3mil. Mortgage is 415K.

My question is: how would you use this equity?

My thought has been to 

1) Pay down mortgage and cash out (my old broker would hate this idea. He never paid down anything. "Appreciation will do it for you!") 

2) Invest in out-of-state turnkey buy-and-holds. Where? 

Question: If I use a HELOC to buy cash-flow properties, is it possible to find houses that I can refi after repairs and get all or most of my $ back and that will still produce income?

I'm excited to be here. 

Jennifer C. 
Brooklyn