All Forum Posts by: Joe Vastola

@Alex M. Depends on the property but I would probably get out an FHA loan and live in one of the units, so I'd only have to put 3.5% down. Thanks for the advice!

@Alex M. That's why I'm a little tentative to get involved with it just starting out. Where would you recommend looking in NYC to find these types of properties?

Thanks for the advice @Melvin List. What would you recommend for financing? I could still use a commercial lender to finance this type of deal right?

I am in the process of getting an LLC to purchase my first investment property. I plan on buying a SFH out of state and plan on financing it through a conventional loan. First, should I get the loan through a bank or lender in the state that I am investing or does it not make a difference if i get the loan from a bank in my home state? Second, I have read that because of the LLC I might have to use a commercial lender with higher interest rates. Is this true? Thanks BP!

Hi @Josh Thompson. When you take out the FHA loan the understanding is that you will have to live in the property for the majority of the year. If you list it as your primary residence (Get mail sent there and on your taxes and do in fact stay there), it will be hard for anyone to challenge you. You probably could get away with living there just on the weekends but I would strongly advise against renting out your unit when you are not there. Additionally, if you are paying the mortgage on time and there are no issues if you move after 9 months, I don't think it will be an issue.

I also work in NYC but live in Brooklyn and it is very expensive/difficult to find places in the area to use an FHA. I would recommend looking at 4-unit if you are looking to maximize cash flow as you will likely be able to pay off your mortgage in full and pocket some money if you find the right property in the right area. Keep in mind though, if you buy a place in central NJ (closer to NYC) you will likely be able to charge more rent and the profit potential could be higher. Even if the property is 100k more expensive thats less than 4k more on the down payment.

@Alan Pederson Below are some of my favorites and great introductory to real estate and financial wealth

Rich Dad Poor Dad

Cashflow Quadrant

The Millionaire Next Door

The Millionaire Real Estate Investor

Set For Life

The Book on Rental Property Real Estate Investing

@Charles Huenergardt I would recommend speaking to a real estate attorney, listening to podcasts (BP has a few that talk about it) and reading a book or two. There are a lot of layers to a 1031 but if you get your ducks in a row it can be very lucrative. Lastly, it would probably be in your best interest to have a new property identified as the one you'd like to exchange up to.

@Charles Huenergardt How much equity do you have in the house you bought? If you are receiving good cash flow I would recommend holding them and building up equity that you can eventually refinance. You can then use that money to buy more properties. A 1031 exchange could be a great option but as @Matt K. mentioned there are a lot of moving parts that need to be aligned.

@Garrett Vita I think the two biggest things are one just doing your homework by reading books, listening to podcasts and utilizing BP and two determining what niche you want to get involved with. I think you will have much more success if you concentrate and become an expert on one investment strategy. Good luck!

I just listened to Podcast 114 with Scott Sutherland which discussed vacation rentals. I think it is a great way to maximize cash flow, but I have heard that some cities have very strict laws. Does anyone have experience with short-term rentals in NYC and know what is and isn't allowed?