All Forum Posts by: Jeryes Freih

Unfortunately the trend in NYS appears to be changing to tenant friendly, particularly since last June when major changes came to the state. Those who own properties outright may have to look at SBA loans now to carry unwanted debt. Not only are they forgiving rent possibly but you will not be able to evict. And its not that I don't sympathize with my tenants but as a property owner I have expenses as well.

We are currently doing our best to accommodate tenant hardship but at some point it may warrant further action. I would still start the eviction process, even if eviction is not possible.

Again have to agree, I am fairly new myself but definitely start early. The best thing you can start doing immediately (which it seems like you are doing since you are here on biggerpockets) is get educated. Brandon says it all the time on the podcasts. Look for deals, analyze them, build your network but get educated. The more you learn before you jump in the less costly those lessons will be after you invest. I could go on forever; but finally, learn about money and how it works: specifically how financing and appraisals work.

Investment Info:

Small multi-family (2-4 units) other investment in Wappingers Falls.

Purchase price: $330,000
Cash invested: $85,000

4Plex, 3-2/1 and 1-1/1 units. 2/1 units are rented at 1300. Rehab needed of deck, stairs, garage and 1/1 unit. In Contract at 320K. Rehab=30K. ARV=425K. Negotiated with bank to give 75% LTV on 1st mortgage and 80% CLTV on 2nd mortgage. Cash needed to close and rehab apx 100K. Reappraise After rehab should allow me to pull most cash back out of deal. Total income=5,500. Will leave 800 in cashflow when all said and done.

What made you interested in investing in this type of deal?

Being that this is my first deal and I do not have a lot of cash having a property where several units are rented and I can rehab the property while the rents are covering the expenses.

How did you find this deal and how did you negotiate it?

Found it on Realtor.com and I negotiated the price down from 385k because there were some minor exterior repairs needed and 1 apartment was vacant and trashed that needed to be fully rehabbed.

How did you finance this deal?

HELOC on primary residence used for down payment and rehab with bank financing.

How did you add value to the deal?

rehabbed the trashed studio into a 1 bedroom, made repairs to broken exterior staircases, coin operated laundry room, and fixing up the garage for extra income.

What was the outcome?

Still in process of closing. We shall see....

Lessons learned? Challenges?

Bank financing a rehab project via conforming mortgage is VERY TIME CONSUMING AND FRUSTRATING.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mortgage originators from Hudson Heritage FCU and TD bank were both very good. Feel free to contact me for names.

Investment Info:

Small multi-family (2-4 units) other investment in Wappingers Falls.

Purchase price: $330,000
Cash invested: $85,000

I am in contract to purchase a 4 family for 330,000 with a 10,000 seller concession that has 3 2bed/1bath units rented at 1300 a month and 1 1bed/1bath that needs to be gutted. There are some other exterior repairs needed as well. All in all it looks like I need about $25,000 in repairs. I believe the property after repairs will appraise at $425,000. I am trying to us the BRRR strategy through a bank as well. I have a bank that is going to give me 75% LTV on the 1st mortgage then after I make the repairs and reappraise the property they guaranteed me 80% CLTV on the 2nd mortgage. Hopefully I will be able to pull out $110,000 from the 2nd mortgage. The total rents will be $5,100 and can be increase to $5,500 over the next year. So all in all I will be able to pull out everything i put in and still cashflow $800 a month.

What made you interested in investing in this type of deal?

Being that this is my first deal and I do not have a lot of cash having a property where several units are rented and I can rehab the property while the rents are covering the expenses.

How did you find this deal and how did you negotiate it?

Found it on Realtor.com and I negotiated the price down from 385k because there were some minor exterior repairs needed and 1 apartment was vacant and trashed that needed to be fully rehabbed.

How did you finance this deal?

HELOC on primary residence used for down payment and rehab with bank financing.

How did you add value to the deal?

rehabbed the trashed studio into a 1 bedroom, made repairs to broken exterior staircases, coin operated laundry room, and fixing up the garage for extra income.

What was the outcome?

Still in process of closing. We shall see....

Lessons learned? Challenges?

Bank financing a rehab project via conforming mortgage is VERY TIME CONSUMING AND FRUSTRATING.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mortgage originators from Hudson Heritage FCU and TD bank were both very good. Feel free to contact me for names.

Hello Everyone,

Like Dillon, I am new to REI and looking to jump in. I am from the greater rural NYC area (about 1 hour away). I have been bitten by the FIRE bug and real estate. I tried to BRRR my primary home and am currently partially house hacking with my wife and son. I am also in contract to buy a 4plex BRRR using bank financing (see my investment post on my profile for details). I have listened to almost all of the BP podcasts and BP Money podcasts. I have read the books and am all in. I found an accountability buddy at work. I am looking forward as well to connecting with people and helping however I can.

Investment Info:

Small multi-family (2-4 units) other investment in Wappingers Falls.

Purchase price: $330,000
Cash invested: $85,000

In contract to purchase a 4 family for 330K with a 10K seller concession that has 3 2/1 units rented at 1300 a month and 1 1/1 that needs to be gutted. There are exterior repairs needed. I need about $25,000 in repairs. ARV= $425,000. Trying to BRRR strategy with a bank. 75% LTV on the 1st mortg then after I make the repairs and reappraise the property they guaranteed me 80% CLTV on the 2nd mortg. I will be able to pull out 90,000 from the 2nd mortgage. total rents $5,100 potential to $5,500

What made you interested in investing in this type of deal?

I feel that BRRR is the fastest way to grow net worth and achieve FI. In my area (NYC region) overhead costs are very high and you need a minimum of 4 units to get the numbers to work.

How did you find this deal and how did you negotiate it?

I found it through MLS. Initially, I did not pay much attention to the property. The listing did not represent the property potential. The listing was asking 385K. I made an offer of 330K before seeing the property. We settled on 340K. We got in to see the place and I saw the repairs would take about $35,000 if I hired a contractor. SO I had a home inspection done and estimates from a licensed GC. I then made a new offer of 320K and disclosed the repairs. They agreed and we are now in contract.

How did you finance this deal?

So far bank financed with the Down Payment being from my primary residence HELOC.

How did you add value to the deal?

Gut the 1 bed/1bath and make the necessary repairs and increase curb appeal

What was the outcome?

we will see.

Lessons learned? Challenges?

getting bank financing with a property that has some safety repairs needed is not easy....

Investment Info:

Small multi-family (2-4 units) other investment in Wappingers Falls.

Purchase price: $330,000
Cash invested: $85,000

I am in contract to purchase a 4 family for 330,000 with a 10,000 seller concession that has 3 2bed/1bath units rented at 1300 a month and 1 1bed/1bath that needs to be gutted. There are some other exterior repairs needed as well. All in all it looks like I need about $25,000 in repairs. I believe the property after repairs will appraise at $425,000. I am trying to us the BRRR strategy through a bank as well. I have a bank that is going to give me 75% LTV on the 1st mortgage then after I make the repairs and reappraise the property they guaranteed me 80% CLTV on the 2nd mortgage. Hopefully I will be able to pull out $110,000 from the 2nd mortgage. The total rents will be $5,100 and can be increase to $5,500 over the next year. So all in all I will be able to pull out everything i put in and still cashflow $800 a month.

What made you interested in investing in this type of deal?

I feel that BRRR is the fastest way to grow net worth and achieve FI. In my area (NYC region) overhead costs are very high and you need a minimum of 4 units to get the numbers to work.

How did you find this deal and how did you negotiate it?

I found it through MLS. Initially, I did not pay much attention to the property. The listing did not represent the property potential. The listing was asking 385K. I made an offer of 330K before seeing the property. We settled on 340K. We got in to see the place and I saw the repairs would take about $35,000 if I hired a contractor. SO I had a home inspection done and estimates from a licensed GC. I then made a new offer of 320K and disclosed the repairs. They agreed and we are now in contract.

How did you finance this deal?

So far bank financed with the Down Payment being from my primary residence HELOC.

How did you add value to the deal?

Gut the 1 bed/1bath and make the necessary repairs and increase curb appeal

What was the outcome?

we will see.

Lessons learned? Challenges?

getting bank financing with a property that has some safety repairs needed is not easy....