All Forum Posts by: Miranda G.

Recently, I've encountered startups and companies offering quick EMD financing at high interest rates (around 3-5% per month). Are borrowers who utilize these funds typically involved in flipping properties? This seems unfeasible for rental investments due to the high cost of capital. Has anyone here borrowed EMD using these services? If so, for what purpose, and how did it work out? Thanks in advance.

I'm in contract on a $400K house upstate NY - was prepared to spend $50K on cosmetic changes (painting,  new floors, new kitchen, new bathrooms etc) but after getting the inspection report today here's all the issues I'm dealing with and it's not pretty (see below) 

How should I move forward? Is this too many issues to even considering buying? If I were to ask seller to repair, what is appropriate/not appropriate? If seller would rather discount the price, how much of a discount is right?
Thank you all!

1. **Structural Concerns: Walls Not Level**
- The walls on the left/rear side of the building were not level on the first and second floors. This issue suggests possible foundation settlement or movement of foundation posts and/or beams, which could be indicative of significant structural issues.
2. **Heating System: Lack of Heat in Some Livable Rooms**
- Several 'livable' rooms had no visible source of heat. Adequate heating is essential for comfort and to prevent moisture-related issues.
3. **Electrical Safety Hazards: Exposed Wiring and Issues with GFCI Outlets**
- Exposed wiring in easily accessible areas and GFCI outlets in the kitchen that wouldn't reset pose significant electrical safety hazards.
4. **Plumbing Concerns: Exposed Plumbing and S-trap in Second-Floor Bathroom**
- The use of an S-trap and exposed plumbing in various areas could lead to potential leaks and damage.
5. **Deck/Balcony Stability**
- The deck/balcony was found to be unstable due to missing or substandard bracing or lack of attachment to the main structure, posing a risk of collapse.
6. **Chimney: Deteriorated Brick or Mortar**
- The chimney showed signs of deterioration, which could allow water to infiltrate the structure and cause further damage.
7. **Basement and Exterior Door Concerns**
- Issues with basement stairs spacing and significantly deteriorated bilco door steps present safety hazards and potential fall risks.
8. **Dryer Vent: Use of Unsafe Duct**
- The clothes dryer was equipped with an accordion-type flexible exhaust duct, which is considered a fire hazard.
9. **Windows: Missing or Substandard Counterweights/Springs**
- Multiple windows had missing or substandard counterweights/springs, creating a safety hazard.
10. **Siding and Trim: Damaged/Deteriorated**
- Sections of siding and/or trim were damaged or deteriorated, needing repair or replacement.
11. **Gutters and Downspouts: Loose or Missing Extensions**
- Issues with the gutters and downspouts could lead to water accumulation around the foundation.

Thanks - appreciate it Mohammed!

Hey all, looking to purchase my first commercial bldg upstate. The one credit union I called said they'd finance based on 30% down, 1 year of holdback, at 7-7.25% rate, 15 term, 25 year amortization, rate fixed for 5 years, 1% fee, no cost to refinance down the road. Are there any credit unions in NY that could do better? Thanks!

Hi Mackenzie, thanks for your reply. I'm looking to buy a mixed used/multi-family building, rehabing the apartments if neccessary, and renting them on annual leases. I would probably sell the property in 10-15 years. Do you know if there is demand for 1-bedroom apartments on annual leases in Hudson and what the appreciation would look like? Are there any commercial lenders you'd recommend? Purchase price will be $1-2M range. Thank you!

I'm wondering if any of you have expertise in purchasing and maintaining multifamily and mixed used properties  in the Hudson Valley region, particularly in Hudson or Red Hook. I'm looking at a mixed use building downtown with 4 apartments + 2 retail spaces + 1 floor that's undeveloped. 

I'd be interested in hearing your insights on the potential for capital growth, cash flow, and future development prospects in these areas.

Thanks all - seller agreed to deliver it vacant. Want me to drop the financing and inspection contingency... 

Hello everyone,

I'm evaluating a unique real estate investment with some intriguing yet complex aspects. I'd really appreciate your insights on this.

The property consists of three homes: two legally habitable, and one accessory dwelling unit (ADU) not permitted for living. It was marketed as three income-producing units, but due diligence revealed legal discrepancies in rental permits.

I revised my offer to about 25% lower than the original, reflecting these findings. However, the tenancy issues are perplexing. The owner, who lives in the ADU, falsely claims residency in the main house, which is illegally rented. The third house is rented legally.

A key issue is the earnest money deposit. The seller wants part of it to "go hard" once we are in contract for repairs to increase the rent in the main house from $4,000 to $7,000 to the current tenants. I prefer the property vacant, so I'm hesitant about this condition, and find it highly unusual. In fact, he says it's part of the deal. Seems like it's very difficult to buy it vacant which makes me wary there's something unusual about these illegal tenants. 

The broker suggests renting the main house (lacking a rental permit) by including myself on the lease with 'roommates,' which they say would mitigate liability issues. This seems creative, but I'm uncertain of its legality. 

Here are my questions:

1. Is the broker's suggestion to rent the main house without a rental permit by including myself on the lease legally sound?
2. How should I approach the earnest money deposit, given it's intended for tenants I don't plan to keep? I already said I don't want to keep these tenants, so I shouldn't have to pay for these repairs using my emd, but apparently these tenants are part of the deal? Are there underlying issues with this situation I should be aware of?
3. Are there other risks or considerations I should be aware of?

The investment is tempting because of its unbeatable price and location. With some renovations, I believe there's potential to double my money within a year.

Your advice on navigating these complexities would be highly valued. Thanks in advance,