All Forum Posts by: Michael Lynch

Hi, 

We are thinking about buying a property in cash that is currently occupied by two tenants. The property has some exterior issues that will most likely prevent us from obtaining a traditional landlord or home owners insurance policy. Assuming that the tenants are still there when we purchase the place, are there other types insurance or products that could cover us for liability while we repair the issues precluding insurance coverage?

Thanks!

Hi, 

Welcome to Buffalo Real Estate. Even though that area you circled is relatively small, the quality of homes and neighborhood vary significantly there. That area is on the boarder of Cheektowaga (First ring, OK suburb) and the East Side of the City of Buffalo (high crime, low property values). That area can have streets that cater to college students closer to Sloan and also very poor and dangerous streets closer to route 62, Bailey Avenue. I would not live or buy there. 

Just out of curiosity, who are you working with from Buffalo? Or are you researching on your own. I hope this helps!

I purchased a home 2.5 years ago utilizing the New York First Homebuyers Club which gives you approximately 8k in grants if you meet certain criteria, which I did. I purchased the home with a conventional mortgage and used the grant to help with downpayment and closing costs. 

The program stipulates that you MUST stay in the home 5 years or you lose a pro rated portion of that 8k. My home has appreciated significantly over the past 2.5 years and I am hoping to take equity out. I applied for a HELOC and when they ran the title it came up that the 8k grant is actually a second "soft" lien against my property that will go away after 5 years which prevents this bank from allowing me to have a HELOC. This was a DIFFERENT bank from the one my mortgage is in, I'm hopeful that works, but I'm not sure.

Has anyone ever had a similar issue to this? Does anyone know of a larger bank that does offer a HELOC or something similar IF it's in 3rd position?

I'm under contract for a nice double and was hoping to use part of the money for my portion of the down payment. Does anyone have any other creative ideas?

Thanks Brandon, could you like me to that article?

I'm a newer (2 duplexes in 2 years) buy and hold real estate investor. I financed my first two properties using Conventional mortgages, which has its pros and cons. 

Recently I came into contact with a potential private lender and I had a thought. I'd like to take advantage of low interest rates and get locked into as many good properties as possible soon. Has anyone on here ever structured something with a private money lender regarding a shorter (or longer) term loan JUST for the downpayment? The property would be in my LLC's name, but I would be getting help regarding financing the downpayment.

I understand that banks usually ask for copies of bank statements so would this loan have to be considered a "gift?"

Any advice/help would be appreciated. 

I'm new to BP in terms of posting, but not in terms of reading/podcasting. 

I currently am an owner of two duplexes in Buffalo; one I live in and rent out half (owned 2.5 years) and the other I formed a partnership (LLC) with and recently started renting (3 months ago).

Both are cash flowing nicely, which is great. Given that I'm relatively new, I'm trying to get more information about how taxes work regarding real estate. I would really like to do whatever possible to minimize my tax liability and overall AGI in the short-term with the idea of being better equipped later in life. I'm hoping to get some more information about different strategies I could take to make this happen. 

For example, in my owner occupied duplex, the current rental apartment is in needs of lots of updates. The kitchen and bathroom are dated (60's/70's). How could I go about investing in updating my rental unit (obviously I would base how expensive the updates are on the rent I think I could get, I wouldn't be too extravagant), in a way that gives me the most benefits tax wise? Would an updated kitchen/bathroom be capital improvements that need to be deducted over time, or would they be replacements that could be deducted that year? How could I go about structuring these remodels and updates in a way that gives me the most tax benefit?