All Forum Posts by: Mansi Kothari

Looking to cash out some equity from a mixed use property. Anyone have recommendation for appropriate commercial/portfolio lenders in NY? 

The Westside and Bergen-Lafayette of Jersey City is another area to look into. I purchased a 2 family last year for $350k, taxes at $6800, renovated for $50k, in the process of renting out now and expect to bring in $3600 a month with $675/door. The rents are climbing in the area and while not many, there may still be deals to be had in the area. 

Thank you @Anton Ivanov

@Anton Ivanov Just came across this response from you to another member in this thread. Would you mind sending me the Reddit thread as well? Thank you sir!

Anton Ivanov from San Diego, California

@Dan Albrecht

I drove around the city and the areas I liked and identified several developments of multi-family buildings. I then put together a list of their addresses from Google Maps. So basically it was a manual process.

I wrote a detailed post on Reddit about exactly how I ran this - pm me and I'll send you a link.

Anton Ivanov

• DealCheck - RE Analysis
• https://DealCheck.io

@Anton Ivanov Thanks for sharing your success story! Motivating for someone who also lives in a high cost of living city (NYC). MY question is around how you found the list of private multifamily landlords that you hand wrote letters to, which by the way is brilliant! I thought about doing something similar in an area I already invest in but haven't pulled the trigger. How did you find that list of landlords? Look forward to hearing you! 

Cheers and continued success in your journey!

@Nick B. Hi Nick, came across this older post and am curious: what did you end up doing? I live and work in NYC as well and find myself in a similar situation. Look forward to the update!

@Josane Cumandala Hi Josane,  thank you for adding your insights here. The property is in Crown Heights, off Rogers Ave.  The rental income is based on actual rents I have confirmed with leases. I re-ran the numbers with increases in the expenses (including vacancy, capex, maintenance, and property management) and the cash flow is definitely negative. This is of course conservative pro forma based on the information I have from seller and markups based on what I know about the area. I am currently renting in the neighborhood elsewhere.  Thank you @John-David Herlihy for encouraging the 2nd look. 

I guess my question is in a market like Brooklyn, with 5% cap rates and dropping, would an owner-occupied make sense here? 

@John-David Herlihy Thank you for taking a look at these numbers. This is a 4 unit building and the expenses include P&I. Of the $7316 in expenses, %5674.88 is P&I. Some of the numbers are actual, some of the expenses are pro forma  based on my research into the property and market knowledge and offer. 

Based on the 50% rule, expenses without P&I come out to about $1700/month. 

@jamaney thanknyou for taking a look! The Expenses line captures everything, including monthly taxes, insurance, maintenance, vacancy, and management costs.

Sorry about that @jaygill  the report didn't attach properly. Also, for some additional insight, its a multifamily that I would owner occupy a portion of, so ultimately the income would come down by $2500. But this is the how the numbers run with the property fully rented.

Purchase price: $1,600,000

Monthly Income: $10,000.00
 

Monthly Expenses: $7,316.54

Monthly Cash Flow: $2,683.46

Pro Forma Cap Rate: 6.27%

NOI Total: $100,300.00

Cash Needed: $490,000.00

Cash on Cash ROI: 6.57%
 

Purchase Cap Rate: 6.27%

Property Information

Purchase Price: $1,600,000.00

Purchase Closing Costs: $10,000.00

Estimated Repair Costs: $0.00

Total Cost of Project: $1,610,000.00

After Repair Value $1,600,000.00

Down Payment: $480,000.00

Loan Amount: $1,120,000.00

Loan Points: $0.00

Loan Fees:

Amortized Over: 30 years

Loan Interest Rate: 4.500%

Monthly P&I: $5,674.88

Financial Projections

Total Initial Equity: $480,000.00

Gross Rent Multiplier: 13.33

Income-Expense Ratio (2% Rule): 0.62%

Typical Cap Rate: 5.00% 

Debt Coverage Ratio: 1.47

ARV based on Cap Rate: $2,006,000.00

50% Rule Cash Flow Estimates

Total Monthly Income: $10,000.00

x50% for Expenses: $5,000.00

Monthly Payment/Interest Payment: $5,674.88

Total Monthly Cashflow using 50% Rule: -$674.88