All Forum Posts by: Michael M.

Hold and rent out or sell?

I was offered 300K more than my house is worth (a 2 fam).  Currently, my mortgage is 2000 a month and my rental income is 4600, which leaves me with 2600 a month income after mortgage.  My calculations tell me to sell and reinvest the gains into the market and buy a 3 fam for the same price that my home sells for.  The rent vs. sell calculator tells me to keep the house and rent out (http://renterswarehouse.com/rent-vs-sell-calculator/).  Am I missing something, or is it because the calculator assumes I am getting market price?

I am looking at a few properties with different zoning in an area where there has been a lot of knocking down and building back up.

Is one of these zoning types more valuable than the other?

How much can zoning add to the value of a home?

Thanks

Thanks @Frank Adams @Lukas Rociunas-Englert ... Is R-6 as valuable as r7-1?  I can sell this property with R-7-1 and buy a better property with R-6 in the same area for the same price that I sell at.

@Lauren Speidel Thank you, if this deal ends up materializing I will contact you for specifics.

I was offered quite a bit above market price (around 300K more than it's worth in the current market) on my 2 family property by a developer that is looking to knock it down as part of a larger project on my block due to the zoning rights and proximity to the project.  

Question 1:

If I sell and buy another property in my neighborhood asap, are there ways to avoid capital gains taxes?  My accountant said that since my current residence is a multi-family, I would be exempt up to 500K on only my own unit, and would have to pay taxes on the rented portion, but he is based in Jersey and has made mistakes in the past...  He also mentioned a 1031 exchange in which I would keep the profit in escrow, but said it was a costly process.

Question 2:

How valuable are R7-1 zoning rights?  Are they only this valuable when there is a project nearby, or can I always get more for my house because of zoning rights?

I'm trying to convince myself not to sell, but I think it would be crazy to turn down a free 300K that I could invest in more/better properties in the same area.

Thanks!

Thanks Basit! In NYC, what kind of numbers do you think make sense on a 3 family? Should I be looking at cap rate or something else?

I started looking for houses (seriously) in the Bronx about 2 months ago, but always keep an eye on the market.  I am looking for a 3 family, and inventory is insanely low.  My realtor and mortgage guy are suggesting I make a move ASAP, as interest rates are rising and prices are going up and I may soon be priced out altogether.  I have seen a few houses that "work" numberswise, but I am not crazy about the neighborhoods. 

In years past, I have noticed that more houses pop up in the areas that I like in the spring.  However, there are usually more houses available in general.  Would it be safe to assume that I can wait a few more months to see what spring brings, or are rates and prices really moving that fast?  What do you guys think about the Bronx/NYC multifamily market right now?

Looking to put an offer in on a multifamily unit in the Bronx.  Supposedly there are other offers.  The asking price seems similar to other asking prices in the area, however recent sales from 2016 and 2017 do not support the asking price (the sales prices from 2016-2017 are 100,000 - 150,000 less.  How low is too low for an offer on a house in the current market?  Is there a better site than Zillow to check for recent sales?

Thanks @Michael Coehn. Can you include projected rental income from the new property for the FHA loan (it was included on my first FHA mortgage I believe)?

I currently own a home with an FHA mortgage in the Bronx, NY. It is a 2 family home and I live in the home.

I want to refinance to get rid of PMI, get rid of FHA, and tap equity to buy a second multi-family home in the same neighborhood with a new FHA mortgage.

A few questions:

1. Once I have refinanced, does this mean that I can take out a new FHA loan because I no longer have an FHA loan open?

2. If I can take a new FHA loan, will I only need to put down 3.5% to buy the new home (I would use the home equity loan for down payment)?

3. Can I move into the second home from the first home to make it my primary residence and use my current home as an investment property even though the second home is in the same neighborhood (since I am not trying to take out two FHA loans at once but one after the other)?

Thanks in advance for your help!

I am trying to figure out where to put it so that I can use it.  

I have rented out another separate unit in the same home for 3 years, which I have always declared.  This will be my first year declaring roommate rent from my unit on top of the rental income from the other unit.  If it appeared rolled into the same rental income as the other unit, would this make it possible to include?  Or should it appear separately?