All Forum Posts by: Kyle Vogeler

Great post - I hope this helps put things into perspective for some of the newer investors. Where you are now is not where you will be years from now, but it also wont happen over night.

Gaining experience will (hopefully) gain you capital and gaining enough capital will allow you to gain time by hiring employees.

1 Vote

Excellent find!

I will say that although it is more common to find these deals off the market, I have bought properties that were found on the MLS and they were being sold due to bankruptcy or financial issues.

But I agree with you, off-market usually has far better options. I just need to work on building my funnel for off-market deals.

1 Vote

Quote from @Lauren Robins:

Hi Kyle,

Purchasing an apartment building in New York City, especially one with below-market rents and long-term tenants, brings with it a complex legal and regulatory environment. Tenant protections are among the strongest in the country, particularly in rent-stabilized buildings, which are common in NYC. Here's what you need to know regarding evictions, renovations, and raising rents.

Evicting tenants who are behind on rent in NYC is a lengthy and procedurally strict process. Since the COVID-19 pandemic, the city has reinforced tenant protections, and although moratoriums have expired, housing courts are still backlogged, and the process remains tenant-friendly. You must first serve a "14-day notice to pay or quit", followed by a formal court process if the tenant does not pay. Even then, judges often grant tenants time to pay or negotiate payment plans. Tenants may also raise defenses such as uninhabitable conditions or lack of repairs, which could delay or prevent eviction. In rent-stabilized units, eviction is even harder unless there is a clear and repeated violation of lease terms.

You generally cannot evict tenants just to make updates to a building, particularly if the apartments are rent-stabilized. The law prohibits landlords from using renovations as a pretext to remove tenants. That said, there are limited circumstances where a landlord can apply for what’s known as a "major capital improvement (MCI)" increase if building-wide improvements are made (e.g., roofing, plumbing, elevators). However, this doesn’t allow for evicting tenants. For occupied apartments, only essential repairs are permitted with notice; you may not legally displace tenants to renovate unless you secure a court-approved "vacate order," which typically only occurs if the unit is deemed unsafe or uninhabitable.

Once a tenant vacates voluntarily or through legal means, whether you can raise the rent to market rate depends on whether the unit is rent-stabilized. If it is not rent-stabilized, you can generally set the new rent at market rate. However, if the apartment is rent-stabilized (which is likely if the building has six or more units and was built before 1974), you are bound by strict rules. In 2019, New York passed the Housing Stability and Tenant Protection Act, which eliminated "vacancy decontrol"—meaning you cannot remove an apartment from rent regulation just because a tenant leaves, and you cannot apply large rent increases based on renovations.

If the unit is not regulated, you're free to renovate and set a new rent for incoming tenants. But if it's regulated, you can only raise rents by small percentages set annually by the Rent Guidelines Board, and any improvements must follow the Individual Apartment Improvement process, which allows only limited rent increases.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

This was extremely helpful - thank you!

0 Votes

Anthony, I have used 2 methods to find my out of state investments.

1 - I research city trends (population, income, crime, etc.) and find areas I would want to invest. Then I get in contact with realtors in that area to send me properties that fit my criteria.

2 - I search all properties that come up for the type of building I'm looking for, no matter the location. Then, once I find a suitable property at a suitable price with a promising return, I do some basic area checks to make sure that the location meet my standards.

Both have worked for me so far, and the second method adds some excitement because you never know where your next property will be.

2 Votes

I am looking at purchasing an apartment building in NYC - the tenants are below market rent and the property needs updates (lasted updated in '05). I do not have any prior experience investing in NYC, so my question to you all is:

- How difficult is it to evict tenants that are behind on rent?

- Can you "evict" so you can make updates on the building?

- Once old tenants are out, is there anything stopping me from renting the apartment at market rent?

Thank you all in advanced.

0 Votes

- How difficult is it to evict tenants that are behind on rent?

- Can you "evict" so you can make updates on the building?

- Once old tenants are out, is there anything stopping me from renting the apartment at market rent?

Thank you all in advanced.

1 Vote

I'm not aware of one, but this isn't a terrible idea. A place where you can look up tenant ratings. I've had a few tenants who weren't officially evicted, but I wouldn't recommend to anyone else.

0 Votes

Very happy to hear you backed out of the deal. I was worried that this was going to be a horror story. Well done

1 Vote

Chaim,

If you are looking to invest in areas outside of your home town, I would start by making a list of areas based off of a few factors:

- growth trends over the past 3-5 years

- median income

- job growth (or major employers in area)

- crime rating

- average rent/average vacancy

You can add other metrics as well, but this will serve as a good start. Once you get data for all of these metrics, you can rate areas and give them a score and determine which areas fit your investment goals.

0 Votes

All Forum Posts by: Kyle Vogeler

Kyle Vogeler has started 10 posts and replied 48 times.

Post: Just Closed My 200th Deal in Louisiana – Ask Me Anything

Post: In real estate, you need three things: Time, Skill, and Capital

Post: Forget the MLS! The REAL deals are the ones that are "Not for Sale"

Post: Tenant Laws in NYC

Post: San Diego Investor looking to invest out of state, BUT WHERE?

Post: Tenant Laws in NYC

Post: Advice needed - Tenant laws in NYC

Post: Horrible tenant Databases

Post: There is No Such Thing as a Handshake Agreement in Real Estate

Post: Looking for out of state investing