All Forum Posts by: Laura Williams

I would not hire anyone without getting at least 2 or 3 referrals and even that can be a risky cause it could be a "friend" of theirs who isn't being 100% honest.  So many things that can go wrong and things they can mess up if they don't know what they are doing. Also if they're doing plumbing or electrical it can be dangerous if they don't follow code or do things properly.  I would hunt down other investors on BP in your area and ask them for recommendations. If you get 2 or 3 that recommend the same person or company then that's your winner. Unless it's something simple like painting, cleaning or yard work in which case Craig's List could be ok. 

@Lalaine Hagler Did you only try the big banks like Chase, Wells Fargo etc??? Maybe try the small local banks in your area that hold their own loans as their qualifications might be very different. Most big banks (Chase, Wells Fargo etc.) sell their loans to other banks so while you might get a longer term loan with with them at a slightly better rate, they have usually stricter requirements. 

I like the red door better as well

@Eva Lowther I believe you'd have to check with that particular condo association in order to be 100% sure what your options are and before you make such a big investment. Each one can have different rules. From my understanding usually condos aren't so restricting as a co-op. You are allowed to rent out, have foreign owners, own in an LLC etc. which is why they sell for more money than co-ops in this area because you have more freedom to do what you want. But I have heard of condo's that have rules where they won't allow rentals or have waiting list of people wanting to rent out to keep the numbers of renters down. This usually has to do with financing cause banks won't lend on condo buildings where there are too many renters and not enough owners living there. In general co-ops and condo's are a pain cause people love to make rules and get in other people's business but if you want to invest in our area there's not much of a choice.

@Robert Vel Are you talking about buying a condo and renting it out with a yearly lease? You can do that legally but in answer to your question if it will cash flow that is a no unless you pay all cash or have a huge downpayment. I don't even think you can buy any kind of condo here for less than 400K or 500K. 

Now if you wanted to buy a condo and rent it out by the night (for less than 30 days) on AirBNB then that is illegal unless you are staying there also. People do it but it's not legal. 70% of the housing stock here is Co-op which most will not allow you to rent out at all, you have to live here but they are generally a bit cheaper than condos. There are the rare few co-ops which are investor friendly that you can buy and rent out. I found my friend one of these co-ops (which was hard to find) for 270K and maint/taxes/sublet fee is about 770 a month and he gets 2K a month rent. Is a really small studio but that is considered a good return for here. New York City is not a cashflow city. People that buy here buy based on the fact they think the prices will increase and they will get the appreciation. 

@Hannah Robie Yeah!!! I just saw this and that you joined on here. You're going to love this site :) 

Lorenzo Bernasconi I live in NYC too & agree the 2% rule can't be done here right now. Most of the advice I've seen on forums & podcast recommend that investors who live in NYC or California (or anywhere where the rent to price is out of touch) rent their homes there & buy investment real estate in other markets where you can get 1-2%.

@Eddie Marcano  this bank that I mentioned was one in Kansas City. They are a  small local bank & they told me they hold their own loans which is why they can offer different options of financing. I talked to the Vice President there & he told me they don't even advertise but rely on word of mouth. I'm pretty sure they don't loan in our area but I'm happy to give you their info if you want. I would call around a bunch of small local banks & ask. The big banks aren't going to offer this kind of service since they sell their loans & therefore the loans have to fit within a certain box. 

With all else being equal I would go for a house over condos. The fees and potential assessments could eat into your profits. Also these love to have "rules" which can be annoying. And if too many renters living there it could make it hard to get financing when you buy or sell. Just something to think about & ask around before you buy a condo.

I would say the same as everyone else & find a good bank that offers portfolio mortgages. I talked to one that told me that they will give a line of credit on places that you already own ..up to a certain percentage of value. Then you can use the line of credit to buy & rehab the house. (You get the advantage of paying all cash for the deal) After it's rehabbed you then go back to them & they will transfer it into a regular loan so you have it under a fixed interest rate for a period of time and your line of credit back. Something like that would be how I would do it.