All Forum Posts by: Nicholas Giordano

Hey BP community! I am fairly new to REI and am looking to purchase a 2-4 unit property solely for cash-flow, while staying at my current residence to live. I am currently living in Westchester, New York about 40 min drive from NYC. I've read "The Book on Rental Property Investing" and just finished up "Rich Dad Poor Dad" upon a few other books upon a ton of forum and online research. I have a solid amount of capital on hand, along with a steady fairly well-paying job. I feel as if I am ready to start building my empire and am highly motivated to do so. My only problem is.. where do I start??! Pretty much my entire county is full of super high priced homes with super high taxes and the ones that seem like the numbers could work are in terrible neighborhoods that I wouldn't even want to buy in! I looked into turn-key properties in Kansas City... I have read about strong markets and cash flow in some areas there.. Does anyone have any experience using turn-key providers in the KC area? If so, any recommendations? I am willing to invest out of state, just don't have the knowledge or experience to do so safely!! I feel like the more time that goes on the longer I could have had already been cash-flowing on something.. just gotta find my niche. Looking forward to hearing from you guys!!

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Originally posted by @Nicholas Giordano:

Originally posted by @Chris Dawson:

@Ejy Mirjan, as JJ said, the KC market is a big area with lots of possibilities. You need formulate your investment strategy and goals before you do anything else as this will help you determine what areas in KC you want to look for properties.

You have already established that you want rental property, so here are a few more questions to ask yourself:

1 Do you want SFR (single family residential), multi family, or commercial (commercial tenants)?

2 How much money do you have to invest and how much money can you borrow (if you want more money)?

3 Are you more interested in cash flow or long term equity?

4 How much risk do you want to take? This is probably the hardest question for most investors to answer. We all want the best returns, but with high returns usually comes higher risks. You need to determine if you are a big risk taker or a little risk taker. Think about your financial situation when you answer this question. Do you have the financial means to recover if your investment is a bust? Do you need income from your rental properties to pay your bills? Are you simply looking for a way to reduce your taxes?

If you can answer these questions, I can better tell you what areas of Kansas City you need to be looking at.

Hey Ayad... i do realize this post is 2 years old but I am currently located in NY and interested in potentially investing in the KC area. I am mostly interested in Cash Flow perferably through multi family properties... i have about 75k to invest and am willing to take moderate risk.... would love to hear back from you !

Sorry Ayad, post was intended for @chris dawson

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Originally posted by @Chris Dawson:

You have already established that you want rental property, so here are a few more questions to ask yourself:

1 Do you want SFR (single family residential), multi family, or commercial (commercial tenants)?

2 How much money do you have to invest and how much money can you borrow (if you want more money)?

3 Are you more interested in cash flow or long term equity?

If you can answer these questions, I can better tell you what areas of Kansas City you need to be looking at.

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Originally posted by @Lionel Li:

Hey @Nicholas Giordano I agree with @Mike D'Arrigo. I'm from Queens + work in White Plains and for a long time I couldn't decide where to invest. I've looked all over the country for a city that I could invest long term in and Kansas City & Indianapolis definitely came up on the top, especially if you're looking for more stable cash flow. I pulled the trigger last month and purchased my first SFR and I've been under budget in almost every aspect in expenses and estimates and with that my Cash flow & ROI are increasing. Contrary to your statement, I believe those two cities are exactly what you're looking for in terms of cash flow.

Hope you find the motivation to take the leap, I know I was as impatient as you were 5 months ago but, do your own research and a lot of it..then figure out what fits your investment goals.

Thanks for the replies Mike and Lionel... After reading your responses I realized that in the back of my head I kinda know that I should be focusing more on those markets. I just believe a part of me is afraid of all of the unknowns.. If you guys wouldn't mind, would you be able to share how you began to enter these markets? Are you using Turn-key providers or using your own agents and boots on the ground? Do you use property managers? I guess just being so far from these areas I can't accept the fact that cash flow potential is very real there. Lionel.. i live literally 2 minutes next to White Plains.. I would love to talk and/or meet to discuss some material ...

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Originally posted by @Aqil Dharamsey:

I am with Larry T. There are plenty of great deals In rochester area. For 50K you can buy a decent 2-3 family with positive cash flow and great cash on cash return.
I looked into Albany market over the summer and the prices are grossly overpriced .... just my opinion. I guess I am spoiled with cap rates in double digits. Good luck!

Thanks for the reply Aqil... I do see that these deals are possible in Rochchester.. Only question is, how are the neighborhoods? What kinds of tenants are these properties attracting? Any specific areas of Rochchester you recomend ? I am a good ways away from that area and not at all familiar with it.. Any info would be appreciated.. thanks again!

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Originally posted by @Ceasar Rosas:

@Nicholas Giordano

Our area can be pretty tough to find that deal that cashflows great. I have the one 2 family here, 2 single family rentals in Pa, and I'm on the 4th flip in Pa as well. Peekskill may be a bit slower than the Bronx and lower Westchester, but it's still a bit similar. Is your goal for this to be pure investment or will you be living in one side? The best deals have been cash bought because you need to solve a problem like take on tenants, violations, extensive work, etc... anything that's move-in ready is high competition in this market. Westchester taxes are a killer, and if you want cash flow you should shoot for a 3+ unit. That extra unit can be all the difference.

My goal is pure investment. Planning to stay at my current residence as its close to work.. I agree, taxes here are definitely a huge killer, tough to make the numbers work.. I am looking into the Hartford, CT area as of late though. Connected with a few people making good deals over there.. what's your take on that Ceasar? Also, what has your experience in PA been like?

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Originally posted by @Ceasar Rosas:

@Nicholas Giordano

Congrats on getting into your 1st real estate deal. Where in Westchester is this 2 family? While I respect everyone's opinion about investing out of area(I, myself do flips in PA), but our markets appreciate a lot more than those areas. For example I bought a 2 family in December 2013 at 400k and it is easily worth now 550k. Maybe even a bit more. When you did your numbers, how much do you cashflow? Also is there any value add? Can there be a development play down the line? Is your goal immediate cashflow or long term value or both?

With this property you mentioned I did quick numbers and it seems like you'd cashflow about -$55.11 a month. You would have to do your own property management to cash flow a little over $200 a month.

Rental Income: $3200

PITI: -$2419.11 - with 20% Down

Vacancy 5%: -$160

Cap Ex 5%: -$160

Repairs 5%: -$160

Property Management 8%: -$256

Water: -$100

Cash Flow: = -$55.11

Good Luck!!!!

Ceasar, thanks for the reply. This property is located in Peekskill, NY. I definitely do agree with you that homes in our area appreciate more and more than other areas. There is some potential value add here with the unfinished basement and also has an attic. When I did my numbers I did not account for property management but your numbers are very similar to what I got otherwise. I am looking for some form immediate cash flow along with long term value. I am having trouble finding properties in the area that cash flow well and/or are affordable in a sense.. Have you had luck in our area? Would love to chat !

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Filipe Pereira very helpful response Filipe, thank you!!! I sent you a message. Would love to talk more about what you have going on in CT!!

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@Alan Brown Thank you Alan ! I messaged you, would love to hear more about the multi families you are seeing in Pittsfield...

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All Forum Posts by: Nicholas Giordano

Nicholas Giordano has started 6 posts and replied 18 times.

Post: Turnkey providers in Kansas City? Recommendations?

Post: Turnkey providers in Kansas City? Recommendations?

Post: Investing in Kansas City, MO

Post: Investing in Kansas City, MO

Post: Live in Westchester, NY looking for cash-flow. Where to start?!

Post: 2-family in NY, does this sound like a good deal ?

Post: 2-family in NY, does this sound like a good deal ?

Post: 2-family in NY, does this sound like a good deal ?

Post: Live in Westchester, NY looking for cash-flow. Where to start?!

Post: Live in Westchester, NY looking for cash-flow. Where to start?!