All Forum Posts by: Marie Eisley

Would it be enough to drywall up the kitchen and bathrooms in the attic unit so that there are only three bedrooms up there in the attic? Each unit, including the attic unit, has its own entrance from a shared staircase. I'm not sure what's the best way to demonstrate that the illegal unit will not be lived-in. I will move into the 2nd floor and use the attic rooms as storage and purchase an owner-occupied policy. Will this prove to be an issue?

Hello BP, I purchased a legal 2-fam house in the Bronx (built in 1899) with an illegal attic unit that's a finished apartment with plans to househack and live in that unit and rent out the others. Right after closing 2 months ago, I went straight into renovations and didn't schedule an inspection til afterwards. Unfortunately, the house was vacant after reno since I haven't gotten tenants in yet nor have I moved in (was planning on it) and I failed interior insurance inspection due to a vacant house and illegal unit. The insurance apparently won't consider reinstating as per my insurance broker. 

How can I ensure I pass my next inspection? What is the proper way to decommission the illegal unit and is this absolutely necessary? Would I have to temporarily move to one of the legal units? Would future insurances I inquire always see a history of a failed inspection? For reference, the illegal attic unit has a gas stove, 1st floor has a gas stove, and I JUST converted the 2nd floor unit to fully electric and capped the gas line. The illegal unit is accessed at the top of a shared staircase as the 3rd floor. It has its own door and looks like its own independent apartment.

I'd appreciate any advice and help I can get. Current insurance is going to lapse next week.

Hi BP! I'm pretty new to REI but I currently own a 3-bed single family in the Bronx that I rent by the room. I put ~7% down on a 30-year conventional loan in 2019 and have been living in the basement there. I'm looking to house hack my first multifam purchase possibly this year. Seeking a place $650-800k with 2-3 units while living in the basement.

I know buying low and rehab/remodeling is the way to go but I don't have much liquid capital left after 5% down and closing costs on an FHA loan. I have ruled out conventional loans since I cannot put down 15% on a 2 fam. I also don't think I can take out a HELOC either because there isn't much tappable equity on my single family just yet and my DTI ratio might be an issue after this purchase. I have no one to borrow from either. In the end, with only $150k cash to work with...what's the best way to go about maximizing cash flow in a financially tight spot?

Hello BP, I'm looking for recommendations for reliable contractors who work in the Bronx and can provide a fair estimate of repairs in a house I am interested in. 

Hi BP! I'm pretty new to REI but I currently own a 3-bed single family in the Bronx that I rent by the room. I put ~7% down on a 30-year conventional loan in 2019 and have been living in the basement there. I'm looking to house hack my first multifam purchase possibly this year. Seeking a place $650-800k with 2-3 units while living in the basement.

I know buying low and rehab/remodeling is the way to go but I don't have much liquid capital left after 5% down and closing costs on an FHA loan. I have ruled out conventional loans since I cannot put down 15% on a 2 fam. I also don't think I can take out a HELOC either because there isn't much tappable equity on my single family just yet and my DTI ratio might be an issue after this purchase. I have no one to borrow from either. In the end, with only $150k cash to work with...what's the best way to go about maximizing cash flow in a financially tight spot?