All Forum Posts by: Stephanie Minor

Hi!

Well, for starters, I'm a newbie, and I've gotta say that hearing you're still in it after two years motivates me. I worry sometimes that if I don't do something NOW, that'll be it for me. It feels like running in a dream sometimes...my feet are moving, and I have to hope I'm getting somewhere. 

I started looking at a lot of things as just steps toward my final goal - everything is a step, no matter how big or how small. The other day I decided to pat myself on the back for having multiple conversations with people I don't know very well. I'm not always good at that, and I see it as a step towards networking, which is a step towards being a good investor. I even found out that one of the people I spoke to does REI with her husband! I had no idea, and now we can nerd out about it :)

Just keep making those baby steps...pay a bill on time = building credit, going to work = making it easier to get a loan and have income for those 'what ifs' when investing, driving around/commuting = getting to know everywhere you go, hanging out with people = making connections, saving money = saving money! 

Find ways to turn the mundane or seemingly unrelated into a pat on the back for being headed in the right direction. Beyond that, I'm sure there are plenty of people to network with here to help you learn about funding or how to 'borrow' someone else's credit for a good deal. 

I also read this the other day, and it made me smile:

http://www.biggerpockets.com/renewsblog/2015/06/01...

@Amanda Comeau I also meant to mention that regardless of the voting power that you and other investors may have, not all assessments or common charge increases are voted on. Check the bylaws for that. Also, increases and assessments affect the Board of Managers as well, and are not typically made in haste; they are typically put into place for a budgetary expense of some sort...chances are it wouldn't necessarily be one you would want to vote down if you had the opportunity anyway.

The Association I was referring to in my post has a major safety issue/liability that needs to be taken care of for example, and the funds just aren't there. They have to assess the owners...

@Mary Joe the Board of Managers (or Board of Directors if you are at a co-op) does have insurance against lawsuits, which they are required to have. It is called Directors and Officers insurance, and typically is in place to protect the management company as well. I'm glad you're thinking about that kind of thing before you get involved. 

No matter how much the Board tries to do their fiduciary responsibility and have all the homeowners'/shareholders' interests in mind, there will always be at least one crazy person who just doesn't seem to get it. They may try to sue, but as long as no one was negligent and had everyone's best interests at heart, they shouldn't win. Don't let the crazies win!

Being a Board officer or member is a volunteer and thankless job, but if working with the right group of people, you can get a lot of great things accomplished for your community!  

If you're not as interested in being a Board Member or attending the meetings, etc. but still want to help out, see if there's a committee you could join or start. For example, a good landscaping committee can really increase the curb appeal of a place. :)

I am in property management (condos and co-ops), and if you want to purchase a condo with as few surprises as possible, you need to do some serious due diligence.

Assessments can hit hard and with little warning. Even if you call the management company to ask if there are any upcoming assessments, they may not know because the Board has yet to approve a budget for that year. I manage a condo now that received notification of TWO special assessments about a month or less of being billed for them. And that's because the Board hadn't decided on the correct amount yet because of other things - I won't get into it...but one assessment is for five years. Some people's monthly charges have almost doubled.

Review the Bylaws/rules and regs, review the minutes going back several years (and have your lawyer review them). A lawyer who knows condos will know all the information needed to make the right decision.

Frankly, I don't like the financial surprises that can come with condos, so I'm going to stay away.

Appreciation is typically based on the community as a whole, so even if there's an assessment for work that will not effect your unit, you'll be paying it. Additionally...if you are to pursue condos, consider if you're on the top or bottom floor - leaks can either come from your unit and you'll have to pay for the others effected, or you could have to deal with a leak from above and possibly an owner who is not responsive to it being their responsibility. For example...

Oh, and vet the management company as well...

Originally posted by @Sam B.:

A lot of folks hype pulling a partner in - but for building cash flow, especially purchasing your first property, I don't see a better method than getting qualified for an FHA loan, save up that 3.5% and go buy a two/three/four-unit where numbers make sense. And then go house-hack your spare bedrooms for additional cashflow. Can't beat it.

Force equity and increase cashflow by improving units on your own, as your income allows.

Yes, a partner will cut your expenses in-half...they'll also cut your profits in half.  And I would argue, in this situation, they would cut those profits to where it's no longer worth it to move forward with the deal.

So again...I don't see a better method than getting qualified for an FHA loan, save up that 3.5% and go buy a multi... Build a quality, tenant attracting property, build that cash flow, and then go rinse & repeat.

I agree. I'm new to this as well, and have even less to put down than it sounds like you do even on your own. I will probably end up doing an FHA/203k combo.

Are you planning on living in the home for at least a year? A multi with an FHA I think is the way to go in our situation.

Hi Jeff,

I'm new to this as well, and just read "The ABC's of Real Estate Investing" by Ken McElroy. If you can get your hands on a copy, I'd suggest checking out Chapter 7. He breaks down verifying income and expenses in a way that really makes sense so you can put the numbers together and come up with an offer.

Hi Eric,

I'm in a similar first-time buyer situation - looking in Westchester and trying not to lose my shirt either. 

Are you including capital expenditures, management, utilities and garbage, etc (if applicable)?

I think in order to make anything work for me, I'll have to go with a low down payment FHA loan, and probably couple it with a 203k reno loan. Have you looked into those at all?

Keep me posted on how it's going - if be interested to know how things progress since we're pretty much in the same boat :)

I'm trying to figure this out for my area before I buy as well. What I'm currently doing is going through demographic information - if you're in a college area, 3 bed would be better. If you're in an area where there are more families with kids, 3 may be better depending on average family size. I try to pay attention when looking at photos of houses with tenants that are on the market. If I see lots of kids toys in a majority of these photos (which I have been seeing), I'm under the impression that there is the possibility of longer-term, family tenants in the area. 

Average age for the area I'm looking is 36, so depending on where you are, those people could have no kids or 7 kids by that age haha

Hi everyone, I have several options available to me right now to purchase a multi family (preferably a triplex or quad) that I'm trying to sort through. Options are good, but I also want to do what's best for me to reach my goals! 1) If I go for an FHA loan, is it possible to refinance into a conventional loan prior to the year of owner occupancy ending? 2) If I receive help from a private party for the down payment and/or cosmetic rehab, would you split monthly rent profits by the percentage of initial financial assistance? Would you pay them back plus a certain amount of interest once refinancing? I may need help at the start, but don't necessarily want to be financially tied for the duration of the rental. 3) Is it possible to obtain an FHA loan and not rent out one of the units, but continue living part-time cheaply with my parents, or would that constitute mortgage fraud? Thanks everyone!

Can anyone advise about the multi family B&H market in Westchester County/lower Hudson Valley? What are people's thoughts on places like Port Chester and Ossining or Dobbs Ferry? I'm looking seriously into Port Chester right now, but I'd like to know what you think about where the place is going. Going anywhere? Stagnant? Thanks!

I'm new to REI but manage many properties that have lockable storage lockers in unfinished basements. Rent them out as you would a garage or parking space. However, you would want to keep an eye on what's being stored and lay out some rules, otherwise you may end up with fire hazards and pest-attracting items.

In my opinion, access to laundry increases value. If you can find some coin-op machines, that could help...