All Forum Posts by: Keon Garraway

the $300k excess equity must be up to the maximum LTV of the financing bank.

with the $300k as down payment and an LTV of 75%, you can utilize the $300k to purchase a property of fair market value of $1,200,000 which is simply $300,000/0.25

keep in mind that the $300k of equity which is cashed out is a loan. the new property of $1,200,000 must pay its own mortgage and the equity cash out loan. If the new property cannot do that, the leverage is not feasible. but some investors will still pursue such a leverage in hopes that the appreciation of the new purchase is great so that upon resale, all costs are covered including the cost of the equity, with something remaining for the investor.

using the financial health and equity of one property to finance the purchase of another  property.

in simple terms, if you have $300k excess equity in a project, you can cash it out and use it as the downpayment for another property.

the new property must be able to pay its own mortgage and the cost of the equity cash out.

the easiest path without stress is to get into affordable housing. start with a city agency as a project manager or an asset manager. this way you learn multifamily deals, tax credit deals etc, then you can branch off on your own.

@Abdul Rahaman

I live in Laurelton queens. Prices are through the roof and I expect them to go up more when the city fully reopens from the lockdown.

I would advise anyone to buy now because prices aren’t going to go down unless there is a massive economic collapse. Nyc is going the way of Silicon Valley in terms of housing prices

it depends on several factors. Are you investing in a turnkey, moderate rehab or full rehab?

Other questions to ask is whether the property has a current tax exemption or tax abatement which is set to expire?

In larger cities, you have to research how the rents are regulated. In NYC where I am located there is rent stabilization and regulation laws?

95% LTV? Which bank financed that.

family members will always discourage you, but they usually come around after the success of the first deal.

you can definitely start with less if you're living in the property, but that will likely be the FHA route with 3.5% down. If you can get a 2 family, that would be perfect.