All Forum Posts by: Maritza Soto

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Poughkeepsie.

Purchase price: $80,000
Cash invested: $72,000

Top and bottom duplex with 2,000 sq ft. Each unit has 3 BR plus bonus room 1 BA and rents for $1400.

What made you interested in investing in this type of deal?

The rent in the city of Poughkeepsie is higher compared to other towns in upstate NY. Total monthly rent is $2800 which made this a 2% deal after the rehab.

How did you find this deal and how did you negotiate it?

I found this deal on the Bigger Pockets Marketplace. I called the owner, walked through the property and negotiated over the phone. He originally asked for 85k and I offered 78k. We landed at 80k.

How did you finance this deal?

I used a broker I met on the Bigger Pockets site who helped me find a hard money lender at 11.5% and 2.5 points. This wasn't bad for a newbie.

How did you add value to the deal?

I updated electrical in the entire house, added new kitchens and appliances, did maintenance on the existing furnace and cleaned up curb appeal. Some surprises were the cost of replacing the deck in the rear, replacing more windows than expected and having to replace the entire back wall of the house due to a leak.

What was the outcome?

My rehab costs doubled but thankfully I had a few backup plans for financing the rest of the project (401k loan and credit cards). The house appraised for much more than expected (210k) and I was able to do a cash out refi and pay back the over budget money I borrowed (32k).

Lessons learned? Challenges?

Lots! The appraisal came back at 70k and I should've renegotiated but I was scared to lose the deal. Ended up hurting me at closing when my interest/points went up and I had to bring 10k more. I should have walked the property with a contractor before submitting an offer. While in contract, I should have gotten AT LEAST 3 bids. I didn't know any contractors in the area and ended up using my property manager which wasn't the best experience because we went over schedule due to other priorities.

Hi Brian, 

I'm in the process of purchasing my first property in Poughkeepsie. It's a duplex as well, very similar to yours.  I checked out the city and I agree that it's a great location with lots of great development in the works.  I'm super excited to grow my portfolio in Poughkeepsie.  Congrats on having two great deals!

-maritza

Thanks everyone for the advice! I think the seller wants to make sure I'm serious before showing me the units. I may need to make a second trip but totally worth it for over 10% cap rate. 

I have an opportunity to purchase a turnkey three family property. I'd like to go see the units but they "don't want to disturb the tenants" but I am able to look at the property and the common areas.  I understand that they may not want to let them know the property is for sale but is it a good idea to purchase without seeing the whole house?  Are turnkey properties usually purchased site unseen anyway? 

I'm in the processing of purchasing my first deal for a fix and flip.  Can anyone recommend an investor friendly title company in Long Island, NY (Nassau or Suffolk counties)?

Thanks!

@Sunny Burns Show #210 was the first Bigger Pockets podcast I listened to and your story was what changed my perspective on real estate investing. You and your wife made the impossible seem possible, especially in the NYC area where I'm from. It's so great to get an update on your success. Thank you for inspiring me and for sharing your story. 

Thanks everyone!

@Chris Grenzig I'm very interested in attending the meetup. Please send me the info for the next one. Thanks!

Hi everyone,

I am a new investor from the NYC area and I'm focusing on flipping in Long Island, Nassau or Suffolk county.

I've been working on lining up some financing and I've been looking into Hard Money lenders for my first flip. Has anyone worked with Patch of Land? They are lower on points but it's based on my credit. I don't mind running my credit but I would like the loan to be under my LLC. Will the loan show up on my credit no matter what?

Any advice, feedback or suggestions of other lenders would be much appreciated.

Thanks.

-Maritza

Hi everyone,

I am a new investor from the NYC area and I'm focusing on flipping in Long Island for now with plans on branching out into Westchester, Brooklyn, Queens and eventually buy & holds out of state. I've been listening to Bigger Pockets for the last 6 months and I am a huge fan because it's been very motivating. I've been trying to get started for a while now (I created my LLC back in 2015) so I'm finally ready to dive in.  

Some of the reasons why I haven't started yet was because I didn't have enough money and I was scared.  I become a part-time RE agent back in 2008 when the market started crashing (we didn't know how bad it was at the time).  I suddenly started doing it full time because I was a freelancer and I couldn't find work. I borrowed money from family and friends just to get by but eventually I was evicted and my car was repossessed.  It was a tough time for a lot of us and I never want to be in that position again.  Although this experience was the source of my fear, recently it has been my catalyst for taking action.

I work in sales at a tech company. Working from home gives me some flexibility in my schedule so I hope it will help me sustain my new "side hustle". I'm already working with a real estate agent and will be focusing on finding my first deal on MLS while building my marketing strategy. I'm also looking into financing options such as hard money and OPM.

I'm looking forward to being a member of the Bigger Pockets community, attending some of the meetups in the NY/NJ area, learning from others with experience and supporting my fellow newbies.  Wish me luck!

-Maritza

Hi everyone,

I am a new investor from the NYC area and I'm focusing on flipping in Long Island for now with plans on branching out into Westchester, Brooklyn, Queens and eventually buy & holds out of state. I've been listening to Bigger Pockets for the last 6 months and I am a huge fan because it's been very motivating. I've been trying to get started for a while now (I created my LLC back in 2015) so I'm finally ready to dive in.

I've been working on lining up some financing and I've been looking into Hard Money lenders for my first flip. Has anyone worked with Patch of Land? They are lower on points but it's based on my credit. I don't mind running my credit but I would like the loan to be under my LLC. Will the loan show up on my credit no matter what?

Any advice, feedback or suggestions of other lenders would be much appreciated. 

Thanks. 

-Maritza