All Forum Posts by: Michael Palma

Hey guys -

I’m in a bit of a pickle here.. essentially I own my current condo in Brooklyn since 2013, and appreciated quite nicely.  I’ve been looking to move into something bigger but recently found that another unit in my building will be going up for sale, unfortunately it’s the same exact layout, however it has roof rights which would give me some private outdoor space and possibility to build up 1 day.  The problem is I did not prequalify because the bank I used will not count assumed rental income on my current place.

Additionally, they did not include my rental income from another duplex I own out of state.  I’m not worried about this as I know there are other lenders that will count this providing 2 tax returns.

Are there any banks that would view this situation differently?  I’ve looked for smaller local banks/credit unions in Brooklyn and NYC area but didn’t come up with any that folks recommended on here.

I'm also in need of a CPA.  @Chris Breezy could you also send me some info as well?

wow,  I'm so happy I stumbled across this post!  Living in NYC I was not aware this was possible.  These are exactly the kinds of homes I'm looking for and have now expanded my search!

ARV of 140k. I may not have the capital for this market and if so thats fine it just means back to the drawing board in terms of locations.

Michael

Hi all,

I'm looking at purchasing my 1st rental property in the North Ward of Newark, specifically a duplex for 100k at most including rehab. It's been about a month now that I've put the word out to a broker and have come up with nothing to date, but there are two bigger issues I was hoping someone could lend some feedback on:

- I have received a pre-approval from the bank that holds my current mortgage, and I've been advised they require 25%. I was hoping for 20% as this puts me above what I was looking to spend and suggested a 401k loan which I am not interested in doing.  Is taking a loan against a person's 401k really a good idea or common for people do do when buying property?

- My broker recently told me that deals at this price are rarely accepted on financing contingencies mainly due to appraisals. He says banks have become really strict on fixer uppers. I've read quite a bit on the forums of people buying houses in Newark with financing so I'm not sure if this is an 100% accurate and before I go and re-strategize I'd like to confirm this with some seasoned investors.

I am very interested in starting my investing career in Newark, but if there are this many barriers for me I may need to re-think things, which is fine (partner, save more, change locations etc.) Any advise would be greatly appreciated.

Thanks

Hi all,

I'm looking at purchasing my 1st rental property in the North Ward of Newark, specifically a duplex for 100k at most including rehab. It's been about a month now that I've put the word out to a broker and have come up with nothing to date, but there are two bigger issues I was hoping someone could lend some feedback on:

- I have received a pre-approval from the bank that holds my current mortgage, and I've been advised they require 25% (as most large banks). I was hoping for 20% as this puts me above what I was looking to spend and suggested a 401k loan which I am not interested in doing. 

- My broker recently told me that deals at the price are rarely accepted on financing contingencies mainly due to appraisals. He says banks have become really strict on fixer uppers. Has this been a common problem for anyone in Newark?

It seems my options are to either look outside NJ possibly or hold off on any investments for awhile.

thanks everyone! I've actually been looking in Newark NJ as brooklyn just seems too difficult to get into at this time.  I can't seem to find anything that will meet my criteria for a reasonable price..

I'm also looking to invest in the north ward Newark. Zillow, trulia, Redfin have all led me to a dead end.. I've recently got in touch with a broker to keep an eye on the MLS, but still struggling to find any deals that meet my criteria for a 2 unit multi family.

thanks for all the feedback!

@Steve Wilcox - Would you recommend your PM for someone's 1st rental property of a two-family home?  I'm trying to understand as a beginner investor if I should be differentiating PM's based on the size of the portfolio.  I have read that some PM's require a minimum number of units.

I'm looking to purchase my first rental property in the coming months and ideally I'd like to use a PM for this property as I travel every week for work.  Long term though (assuming the 1st property goes smoothly) I would like to grow my investment portfolio and not have to continuously upgrade my PM if I have a have already build a solid rapport with one.