All Forum Posts by: John Hickey

Kate Hall could you please send me more info as well? Do you have PM services also? Thanks [email protected]

@Daniel Singh I'm following his thread because I'm in a similar situation.  I also  bought in Brooklyn and still hold on. I love the market and have a lot of experience but the heights we have reached make me skeptical of short term growth.  

I haven't looked much at New Jersey mostly because I don't like to pay tolls to see rental properties.... I like NY because I've lived here all my life and I know many of the towns firsthand or through friends For buy and hold NY is tough because of taxes, you want to flip but it's always nice to have the option to BRRRR. Connecticut is more attractive to me because I perceive the taxes are slightly lower, as you said you are flipping so that's not your concern. Taxes change of course house by house and town to town but I've seen a lot of multi families in NY where the taxes would be 150-200 percent of the mortgage with 20% down. The tax money we will never get back

I have done a bit of research and I'll pass that along to you. In that price range  I've looked at a few houses in the following cities. I've spent a day or two in each.  In Connecticut: Bridgeport, New Haven(75 would be tough without some rehab$)Hartford.  New York: Poughkeepsie, Newburgh,  Peekskill(also a bit priced above 75k)  I'm sure there are many more towns out there, love to hear about them as well.

Jonathan Makovsky thanks for putting this together! I'll be attending as well.

Jon O. I agree with a lot of what was said above and you hit the nail on the head with cash out refi, if you can tolerate the risk. You've already managed to hit a home run, I know what I'd be doing if I was you but that's up to you.

@Joel S. your right about that! I got a job in the nieghborhood ten years ago.  I had been there a few times over the years and it had already changed a lot then.  So I drive around looking for a place and found a for sale by owner sign.  It was my first house I made a lot of mistakes! They had done a cheap Reno and they hid a lot of stuff on me that I later had to fix.  Lesson learned though a fool and his money......mind if ask what parts do you think are a good buy now?

@Chris Bell that's the way to do it! Cash flowing properties.  I've been spending too much time on rehabbing lately.  I don't get down to AC much but I'm in Brooklyn once or twice a week.  I'm doing a little work on a 2/1 on Bedford and Lafayette. 

@Chris Bell Congrats on the new property, and welcome to BP. Good call on having the seller remove the oil tank, that's the type of stuff that can cost you down the road. Are you sticking with the oil? I have converted in the past, but its expensive. It takes a long time to recoup. What were you thinking?

@Claudia Bonaudo good luck!

I was just talking to my accountant about the 1099 requirements a few days ago.  I would check with yours.  If it's less than $600 you won't need one and if the company is incorporated you won't need to issue as well.  So that leaves individuals LLCs LLPs and sole proprietors.  But again I would check with an accountant.  

In my area contractors are required to issue a contract. That might be different by you.  That contract will most likely be very basic as far as protection for you.  At the very least they should have liability insurance naming you additionally insured.   If they have workman besides themselves they might be required to have workmans comp....think that depends on the state.  

On the protection side speak with a lawyer.  My lesson on lawyers was that you can save a little up front by asking advice from anybody that will give it.  Unfortunately that might end up costing you much more later.  

I would look for indemnity clause, hold harmless clause, performance clause,  a date to be completed and penalties for not finalizing work or coming in late. Problem is some contractors will refuse this kind of stuff or look to wallop you with a higher price for these clauses.  In the end contracts are give and take   You might never need a good contract but if you do you'll be really happy you paid for it   

thanks @Dave Currence and @Carl C.

@John Geldert thanks to you as well. I found a great new employee through this flip and I realize I needed a project manager on site.  I had been doing the day to day myself but it wasn't working out.  I work full time and things kept going slightly wrong or not the way I planned.  When confronted with a problem contractors  left to thier own make decisions I would never allow.  The change backs cost money. Once I hired a project manager things went much smoother.  He's a talented carpenter so when not managing he was doing projects I had kept for myself.

  I spent a bit too much on things like spray foam, solid doors, crown molding(nearly everywhere), hardwood flooring and converting house to gas.  I plan on fixing my own rentals up in the near future.  I realize in a flip I could have saved bit here and there, because the buyers didn't care so much, for some of the things I over spent on. They were looking for new kitchen and baths. All new plumbing, electric, boiler, and spray foam were not a selling point for most. 

Closed today sold for 612

Paid 325 for house

9k closing costs, including survey and inspection fees.  

Reno was 190,000

Realtor 27,200

Taxes and insurance whole held 6,700

Lawyers and architects 7,500

Utilities 1,500

Interest on loan around 7 not sure till I see the payoff.  We overestimated because the bank takes 72 hours to send.  

lots of work for less than 40k but it was my first one and I had to sub out a lot of the work because we had a new baby in November.  

Thinking I'll do more fix and rent after this more room for error and if I blow the budget.  I tend to go a little overboard.