All Forum Posts by: JP Morales

I’ve recently got the ball rolling to try an upscale from a one bedroom co-op unit into a multi-family property. Preapproved for a considerable amount of money assuming a two family unit outputting $2K/month rent roll from one unit while I pay the difference if I occupy the second. The $2k is definitely a conservative estimate for rent. I have access to easily over $100K in liquid capital not including anywhere from $60-70k in unrealized equity should I sell my co-op(which is the intention.) Getting pulled in so many directions on how to play this. Just want a decent living situation for me and my family. 

@Tom S. @Jay Hinrichs yeah I was referring to the things you would see on sites like Auction.com and so on. There's several multi-families that I see in my area and are up for auction shortly. All my equity is tied in current property.

Really want to migrate towards the house hacking strategy considering the way rental prices are climbing so quickly. 

So i’ll Probably get snickers and scoffs...but I’m hoping someone could shed some light on this. 

I refuse to believe that foreclosures are reserved for people who only have cold hard cash. There must be some way for the “average joe” to capitalize on these deals. Is there really no way to “finance” a foreclosure? 

@Joe Jor yes you do have a point. I am particularly looking in the Yonkers, NY area. I have placed the home age into my consideration. Ideally I'm looking for something in the 50-60 year old range. 

@Will C.you're probably right...I shouldn't use that term "guaranteed."  I have read several on BP regarding Section 8 Pros/Cons. 

Do you know if there is any legality regarding knowing someone who has a section 8 voucher, looking for a new residence, certifying your property for section 8 use, and making them your tenant?   

@Abel this is an extensive game plan! I really appreciate this. 

My biggest fear is a long turn around time for the sale of my co-op. We are a small complex(only about 80 units) so I haven’t seen the board approval process take that long. 

I make hefty mortgage payments so every month I building more equity. However since starting a family, I feel like the home has lost intrinsic “face value”.” Having a little one in the home, makes the apartment look like one big playroom! Any advice on how to tackle that problem?  I don’t want to pay for professional staging or organizing services. 

Thanks again for all your feedback. You definitely have me a great starting game plan. 

@Tim Herman I appreciate your feedback. Unfortunately I can’t sublet my co-op, which complicates the scenario further. 

I think for the market I’m mentioning, I agree appreciation is more so the play.

@Scott Wolf thanks for your input as well. Given thee rents I can expect, a two family seems like a no brainer and doesn’t take too much money out of my pocket. 

First off I have to say I love this community and all that I have learned from it. Was hoping I could get some nuggets of wisdom from everyone here.

So currently I own my first home that is a 1 bedroom co-op in Westchester New York. I’m at about 50% equity in my apartment, which would provide me a sizable down payment if I sold. Ideally that would be my beat option because my liquidity is not the best, after starting a family. 

I’m looking to purchase a multi family, ideally a two family. Would love to rent one side and live in the other. The going rate of rate for a private home with for a two/three bedroom apartment for rent is about $2500 conservatively. 

Based on market values in my area I’m looking at a price tag of $450k to $600k. I’m a little apprehensive of pulling the trigger. Without first selling my first property and jumping into the next, it leaves me with a big overhead. 

I used the rental property calculator on the site and it gave my a cash on cash ROI of -20%. I've been reading double digits in the positive is where you want to be at.

Finally I considered using a section 8 tenant as a guaranteed source of income for the second unit if I were to purchase a two family. 

Any opinions or guidance would be greatly appreciated.