All Forum Posts by: Nate Monson

Hi everyone, I'm an agent and investor in the Albany, NY area. Would love to be a part of this call too to learn and share experiences!

Hi @Christopher J.! I am tagging @Ryan Vienneau here. He has been great for my clients as a property manager!

@Mike Dolan shoot me a PM. I had a similar situation with a property I'd be more than happy to share.

Hey @Mike Dolan, if you're not planning on moving into the property the bank shouldn't have let you do an FHA loan anyways (Although there are ways around that).

If you are planning on moving into the property then you should be fine to put the 3.5% down unless the bank flags any issues (ie. chipping paint, loose railings). However, if the bank is flagging something like that or anything else, you should have the right to complete those repairs on your own or hire someone to do it to keep moving forward. 

@Account Closed I hear what you're saying man. Trust me I want the worst case scenario too, but I also want to run realistic numbers otherwise you end up analyzing properties forever and not buying anything ever.

I'd check out some of the stuff that other banks have. I've had a few clients who have wanted to use Homestead before too for a few clients and they are quick but a few days of speed isn't really worth double the closing costs in my opinion. 

@Account Closed 25% down payment will only make the payment lower which will only increase cash flow. But you don’t have to look that hard for a commercial lender or even a traditional lender that will do a 20% down loan on an investment property. (CapCom FCU).

 The only time I’ve ever seen 6% closing costs is through a quicken loans or rocket mortgage. If you use a local lender like CapCom or SEFCU all of the fees (bank fees, mortgage recording fees, title fee, attorney, inspections, appraisal) would come out to around 3% and that is on the high side. 

As for lawn maintenance and snow removal...sure if you want to hire those things out your cash flow will be lower. But what I said is “you can get your properties to cash flow $1000 per month.” So like anything if your going to hire someone to do part of the work your going to make less. But I would still take a deal that cash flows $950 a month all day. 

I noticed a few others mention missing expenses as well and I understand there could be some other costs to consider. But those costs are going to depend on what the persons goal is. If you want to scale then yes maybe you need to advertise and need a website. If you want to be a smaller time landlord (like myself) it’s not very hard to get a property rented with the high demand in Albany. 

Please feel free to let me know if I’m missing anything else! Only will help us all grow! 

@Account Closed If you can find something wrong with my numbers please let me know. :) 

Hi @Dan Talmi I am an agent in Albany, NY. The student market is generally very lucrative here. SUNY Albany and St Rose create a very high level of demand for student rentals in the area. That being said I have been hearing that the schools might not bring everyone back to campus right away. So there could be some decreased demand. The numbers on a typical student rental look like this... Purchase price: 225k, Rents: $2800-$3000 monthly. Operating costs are usually generally hover around $1100-$1300 and your mortgage would account for another $800-$900. You can usually make most student rentals cash flow $1000 per month if you get it at the right price. Some challenges are finding a property manager if you need one. There are those who do it but aren't that good. And those who are good usually don't like to deal with students around here. I find managing it yourself to be the best way to go generally. Please feel free to reach out if you have anymore questions about Albany student rentals!

@Matthew Konkel in generally I think pros of student rentals are that you can get more rent than long term rentals in many markets and depending on the situation a lot of the times the rent is very secure. Whether it is parents or a student loan paying for the housing. Downfalls are that you generally have more work to do in terms of turnover and management. Other things to watch out for is making sure you have accurate rental rates. In my market the rent is paid monthly year round (even when the students aren't there). In other markets they may advertise it as "X monthly" but in reality they get semester payments and don't get paid for the summer and winter. Despite some negative I believe college rentals are a great investment avenue. Hope this helps!

Hey @James Santana, when I started I looked at how other people conducted their business and tried to essentially copy their models. I found out that someways going about business didn't work for me and eventually I found the model that worked for me. For management, I would be careful trying to build two different businesses like that at once. My advise would be to focus on the sales side first and once you get comfortable and confident making money that way, then look to develop a management arm off of your sales business. Good luck!

Hey @Matt Lengel I would echo some of the points that Will made. A live in rehab of any kind can be a tricky situation. If you're looking in Albany, NY our inventory here is perfect for a house hack since there are many great B-B+ two family properties. A little bit less so for "live in" rehabs due to limited inventory. Please feel free to message me if you have any market specific questions!