All Forum Posts by: Libby Tucker

I recently purchased a 2 family home in the Bronx. I also own a SFR divided into two 2-bedroom rented units (2 bedroom + MIL) and a seller-financed houseboat in Seattle. My gross income from rental units is approximately $14,000 / month. In equity, my SFR has $200k; my houseboat has $100k, and my property in the Bronx has ~$100k.

I have a unique model in the house in the Bronx that is a furnished co-live-work space for entrepreneurs in which I include services like linens, coffee/tea, community manager, etc and for which I'm able to collect rents that are approximately 2x the area rents.  I'm able to do this because I have an existing network of entrepreneurs that I can tap into for this type of co-live-work experience, from my tech entrepreneur background.  

I'm looking to expand this concept now that I have proof that it works.  The problem is that I used all my available cash, and I maxed out 3 credit cards to furnish the building and my credit score dropped.  I see this as temporary but a lender would see this as an issue.  

I have experience owning, rehabbing, and renting 3 properties, self-managing and being a landlord for over 10 years.  I'd like to move from tech entrepreneurship into full time buy and hold multifamily, expanding my co-live-work concept.  

I have an immediate opportunity to expand.  

The house next to me, a 3 family, is for sale and it's un-mortgageable. I have spoken with the agent and she agreed to stop showing it if I could come up with the cash. She's asking $420k, estimated repair value she said is $50k but I believe it's closer to $100k to fix it up and furnish it the way I'd want to. ARV based on my property value and online estimates between $600 and $700k. I believe it was just purchased at auction for ~$100k.

Questions: 

1) What could I offer if I had immediate cash?  300k?  200k?  

2) How can I get the house under contract without a buyer agent representing me?  

3) What kind of creative financing could I use for this deal, considering I have credit card debt and no capital right now - I've been using the rental income to continue to make updates, buy supplies, and pay off the credit cards.  

4) If friends and family will not lend you the money / don't have money to lend, where are some resources to look for private capital?  

5) How can I leverage the properties I have now, my experience, and create a packet for potential investors?  

I would like to go 100% in and expand my concept.  I am great at executing but fully leveraged and need capital - how do I attract the capital I need?  

Matt at FundThatFlip suggested I offer equity in my current Bronx property and equity in the new property, along with 100% guarantee of investment returned.  If I can get the capital for part of the deal, FundThatFlip will likely fund me, assuming the numbers worked out of course.   

What else could I do, leveraging what I have now, to finance this deal, or another one like it, and future deals as I expand?  I am anxious to do at least 2 more deals like this in NYC this year.  

Hi Jason, I just purchased a 2 family home in Soundview, 2 blocks down from the former home of "Pistol Pete" on Commonwealth.  There's not much in the area but the neighbors are long term and we haven't had any problems with crime.  I recommend taking normal precautions, i.e. not walking late at night, etc.  

Thanks @Dave Holland!  I'll start there. It's just changing the name on the deed ?  Sounds simple. 

I just closed on a property in NYC, under my personal name. I want to move it into an LLC. 

I have a due on sale clause, but I'm wondering what are the ways to get around that. I would like an LLC to protect this particular property because I'm claiming it as a business and employing on-site help.

Can anyone offer advice and/or someone locally that could help me understand how to best set this up?  Thank you.  

I just closed on a property in NYC, under my personal name. I want to move it into an LLC. After reading the forums, I asked my attorney if there was a due on sale clause, to which he said yes. But that there may be ways around it.

I will have multiple tenants and running my home as a legal business, but especially because of the higher turnover, I want to be prepared by creating an LLC to protect my business, and to employ some part-time help with the management of the property on-site. I also have 2 other properties that I own and as I grow my portfolio, I'd like to ensure I keep them separated as much as possible.

Thank you! 

Just a quick update for everyone - I was able to get the section 8 tenant out and house delivered vacant prior to close, which happened a few days ago.  Come to find out the tenant actually had not been paying.  I have increased costs in roach extermination and 2 partial kitchen remodels which I didn't expect, but I am happy to say I saved a lot of headache and money - and I closed on my first property in NYC!  Thanks everyone for the help! 

Yes, it's NYC.  Bronx.  

I am planning on renting, yes, for a pre-planned co-living group of tenants.  Also the rent is below market rate that she's paying, approximately $500/month under market.  She's been there for years.  I do like consistent rent, and feel badly about asking the tenant to leave, but it's under market and my mortgage approval is also pending market rate rents estimates from the appraisal.  I just asked the seller to put rents plus court costs into escrow to, sadly, proceed with eviction upon close.  Thank you for the great advice. 

Update: It's July 3rd and the tenant keeps pushing the date back to move.  It was May 31st, then June 25th, then mid July, and I got an email yesterday that it's now late August. How long can this go on?  We are clear for close on my side.  Seems they are toying with the system and it's looking like we will have to close and then do an immediate eviction, which could leave her with squatting another 6+ months.  Any advice?  Any idea how much an eviction will cost assuming it's a 6 month process?   I am thinking to ask the seller agent to put some funds into escrow as a condition of close and we can move forward with the eviction.  It's not something I want to do but it's looking like it will never end otherwise.  Thanks for your help.  

Good point, @Dom K. - not every tenant will, but assume the worst.