All Forum Posts by: John Boychuk

From my understanding, HEPTA only applies to homes that are in foreclosure and or in default. Usually Sub2 is most common in this situation.

https://www.dfs.ny.gov/consumer/hetpa.htm

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I'm in the Rochester area. Would love to connect with you some time. HMU.

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Rochester, Minnesota

It would be illegal (in Missouri, and some other states) to turn down a prospect solely based on them being on Section 8.

I would advise you to have a written set of criteria that you apply to all of your applications, including a minimum income (section 8 would count towards this) and a minimum credit score. If the prospect does not meet those requirements, you would not accept them.

I'm not familiar with all the laws in Missouri, however, I haven't found anything in my brief research that states you must accept the first qualified applicant to apply. If that is the case, you could always give yourself 14 days to market the unit and pick the most qualified applicant of that set.

EDIT: Wording*

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Originally posted by @Martin Grizzanti:

Boylan code is crazy expensive-- go with

Burgess & Miraglia, PC, Attorneys at Law

I second this. Burgess & Miraglia specialize in evictions.

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Upstate New York, New York

@Andre Walker

Albany is a HIKE. I'm looking for something within 30mins.

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Upstate New York, New York

Originally posted by @Shane W. Chapin:

Hello @Brian Fung I am an investor from Rochester and actually live in Hilton, NY. My wife is a real estate agent if you need help on that side of things. Or feel free to reach out if I can answer any questions for you. I do have a podcast the is specific to the Rochester, NY market. The goal is to connect long distance investors with the local pros that know the areas inside and out and can serve as trusted boots on the ground. Here is the link if you would like to check it out. Good luck!

https://www.buzzsprout.com/787139

Tried to listen to the podcast on Spotify but the volume was super low. Is it just me?

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Investment Info:

Small multi-family (2-4 units) buy & hold investment in Rochester.

Purchase price: $91,000
Cash invested: $1,760

Duplex in the 14609 zip code; one of the hottest zip codes in the country (PRE-RONA). 2bd/1ba upstairs apartment atleast $200 under market rent (monthly). 1bd/1ba downstairs apartment atleast $45 under market rent (monthly). Detached two car garage in rear.

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

Property is in a great area that is still on the rise, at-least pre-RONA. Property is worth ~$145k based on comps in the area. Needed ~15k in rehab.

After refi cash flow of the property is ~$405 budgeting for maintenance, capex, repairs, vacancy, etc. I'm very satisfied with the returns in this neighborhood.

This was my first deal where the entire purchase was financed by a private lender.

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

Property was listed on MLS with asking price of $110,000. Property was under contract for $120k IIRC, which fell through. The upstairs apartment needed a full rehab (~8k) and the roof needed to be repaired or replaced (Est. 8k, completed for ~$3k). Potential buyers were nervous about dealing with the upstairs resident as his rent is seriously under market and the unit needs complete rehab.

How did you finance this deal?

Private lender financed 100% of purchase. I paid closing costs and am funding the rehab.

How did you add value to the deal?

Garage rented $135/month
Upper unit will be re-rented post rehab for $850-$900/month ($625 current)
Lower unit will be renewed at $695 ($650 current)
Rehab of upper unit will increase market value of property from 91k to ~145k

What was the outcome?

To be determined. I closed on the property right before Covid-19 hit. This has affected the upper unit rehab as the current tenant was searching for a house to buy; current restrictions have halted that process. Originally expecting the current tenant to be moved out by 5/30/2020, however, the current move-out date is unknown.

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Originally posted by @Scott Mac:

Originally posted by @Ryan O'Malley:

Hi BP! I just created a listing for my duplex and know that NY State Law now limits the application fee for a renter to $20. This is below what majority of the credit check sites cost (I use cozy), so I am wondering what resources landlords in Rochester, NY have been using or how they go about screening. I use cozy currently, but the applicant cost per credit report is $25.

Ryan

Hi Ryan,

Do they disallow other (granular) fees, the way banks charge on loans, such as:

Application fee $20

Application review fee $20

Application storage and filing fee $20

Application clerical fee $20

------------------------------------

Total $80

I'm just using that as an example, of course it would be intelligent to match what your competition is doing and not charge $80 if everyone else is charging $20.

(first they came for the trans-fats, then the soda size, etc...)

No where near allowed. The law states the cost of credit/background check or $20, whichever is lesser.

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Local REIA is called Freedom First Real Estate Investors Association. They have an "Alternative RE Investing Strategies" meetup that would be worth attending after Covid-19 is under control. They may be doing ZOOM meetups.

If you find a good deal HMU. I'm looking to buy.

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Upstate New York, New York

Originally posted by @Frederic Babeux:

@John Boychuk I am aware of the new laws that have been passed and currently only have month to month leases as I feel that is slightly less restrictive.

@Brian Dickerson I chose Rochester because it was the closest market that had decent prices on the housing stock, I found it quite convenient to be able to drive there (about 5 hour drive which I find not too bad). I've looked at some other midwest states such as Ohio and they seem to have newer buildings (most multi's I've seen are brick buildings, which I like). I'll have to do some more research on those other states! I know alot of Canadians invest in Florida because financing is easier there for canadians (but again, only for 1-4 units).

Thank you both for your feedback, I definetly have to do some more thinking!

I think Ohio is a great area for investment if you are looking to be within a relatively short drive.

In regards to month-to-month leases, you are still required to give the resident 90 days notice if they have been there for 2+ years, 60 days notice if they have been there for 1+ year and 30 days notice if they have been there for less. Because of this, I continue to do regular leases.

What benefits do you have as a MTM lease with regards to the new laws that passed?

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All Forum Posts by: John Boychuk

John Boychuk has started 1 posts and replied 49 times.

Post: SUB2- Subject-to in New York State

Post: Anyone in Rochester, NY??? Looking to Connect!

Post: Someone asked if I accept Section 8

Post: Eviction Lawyer/Firm Recommendation

Post: Looking to land my first wholesale deal

Post: Looking to build a team in Rochester, NY or Washington, DC

Post: Duplex Purchase - 100% Financed - In Progress

Post: Tenant Screening in NY

Post: Looking to land my first wholesale deal

Post: Change my strategy/market?