All Forum Posts by: Jon Arteaga

yeah, my whole family is here and so is my workspace. Fairfield County is definitely not easy to find much lol 

Hi All!

I purchased a two family home in 2017, renovated it, lived in the first floor and now its currently rented and cash flowing about 11%. Purchased a raised ranch and currently I think its too much house for me. Young single guy, a condo would be nice but another multi family would be even more ideal. I only need an apartment with 1 bedroom and an office space. I purchased the single family with the intension of living with roommates but the living situation is more hassle then I'd like. Also the single family house has a septic system and well rather then city water/sewer. These loom over my head as potentially very expensive repairs. I bought the single family house $50k under asking price and could sell the house now that we're entering prime listing time and i'd do for sale by owner to save on costs. This would sale would also help me to obtain the 100k roughly that i'd need for down payment, the average multi family is $400k in my area.

Three problems I currently have

- Multi's are scarce in my area (Danbury CT) , if they come up they're overpriced or sell very quick

- Lenders would most likely request 25% upfront, I can obtain this by selling the single family. 

- If the single family sells and theres no multi - i'd have to rent in the interim which could be a year or two (it took two years to find my first multi) 

Any advise from someone who went through a similar situation? Should I keep the single family, rent it with minimal cash flow ($600 a month/4%)?

 Yes, they are going to take over the family’s finances & when the topic came up they asked for my opinion. I own a rental & i’m getting my realtors license in 2 months. By no way an impressive resume lol but they have 0 experience & i’m unfamiliar with their market, looking to see if some kind professionals can weigh in with their expertise. If you have anything of value to offer, i’m all ears. Thanks!

I’m looking to help them out by increasing their cash flow if I can. Only in advising/helping them to figure out whats best based on their risk tolerance & needs. Their father is ill & is about to hand over control of the property & family finances. I have 0 incentive to help, this is all in an effort to pick the brains of those more experienced to aid in decision making

I agree! I’d like for them to do something with it. Maybe its best to wait for a deal in a down market

 Thanks for your input! I agree with you on many points

Hi All,

I'm looking to help my cousins out. Their parents bought a 4 family house in Ridgewood in the early 90s and its value has increased tremendously. Its valued at 1.2 million dollars based on the recently sold comparisons and cash offers they've received. The house was built in the 1920s and needs some updating on the inside (its last been updated in the 80s). Rents are low due to close relationships with the tenants and are currently $1400, $1300, $1600 and the owner occupied (parents). The house has 20k left to be paid off and one of the cousins works in Times Square and is looking to occupy one of the apartments. A full renovation would cost easily $250k. Rents for three nearby homes are $2500-$2700 for a 2 bedroom, 1 bath apartment. In my opinion, they should leave the house as is and try to maximize its rent potential ($1800 each apartment?) with the existing condition or more cosmetic improvements. The surrounding apartments had major improvements that maximized the space (larger windows, removing hallways and changing entrance, decks, cameras etc)  and created a very nice space. In my opinion, they should take out a home equity loan and buy another house in the area that is a rental and let it bring some cashflow. All opinions and options are welcomed... I personally am in favor of leaving the building as is with some improvements (Kitchen/Bath/Floors), investing maybe $80k into the house and using the rest of the money to buy another property nearby. 

@Tyler Work Hi Tyler, thanks for the reply. The garage is across the street from my rental & could hypothetically be sold off on its own if need be. I think It could easily sell for $130,000 

@John Miranda thanks for reply, i'd prefer another rental. My first one is in a good location & is in great shape. Most of the rentals in my town or surrounding town are somewhat overvalued or are in need of remodelling. They also don't appear too often (took me 2 years to find one). I was curious what the experts thought about maybe purchasing another home with a 30k down payment instead of going this route or putting this off until its ideal to. I like having cash incase the right rental appears. It is a large amount of cash to invest. 

@Andrew Kerr thanks for the reply. Its currently on its own separate deed with separate taxes & separate utilities. My area is nice & close to a large park but i wouldn't say its in a tourest location.