All Forum Posts by: William Coet

 
NYC has one of the lowest property taxes on residential. NYC property tax has never been a real issue. 

Also no big market has SFR's that make financial sense when you look at cash flow. But add in your appreciation and debt pay down numbers and it looks a whole lot better than almost any other place in America besides SF.

So true, once a person can afford a bit more, these issues go away. What about those who cannot afford a $200k home, but can afford lets say a $75k to $100k home? Credit is readily available for that market. Plenty of solid, but lower income people could pull it off. Unfortunately, this is an in-between space where an investors most profitable play is to paint only, as the cost of a full rehab is too much and those dollars added up in many neighborhoods would price out the investors (meaning the market would not support the total cost). So, they (investors) find a decent deal, paint it, and sell it on the high end. Problem is, it returns to the low end as soon as the paint goes bad, meanwhile the major components that were never addressed are a few years older, and that lower-income buyer is stuck with a bad value, when they are the segment of the population that can afford a bad deal the least.

So, what I have been working on is targeting the $75k ARV price-point, except fixing the major stuff and skimping on the cosmetic stuff. The idea is that once the underlying components are repaired, it is very easy and relatively less expensive to replace top-layer components (cabinets, flooring, fixtures, paint, etc.) LOL - No, I have not actually pulled one off yet in the exact fashion I speak of, but have been forming my game plan and hope to do my first one this fall. I was sort of hoping you would like the idea and maybe help me sell them!?!? I was thinking a minimum $5k commission for the realtors to split. My part will be getting the banks/appraisers to see the value.

As far as marketing, I would hope to sell them to locals in need of a good value. However, I can also see how an out-of-market investor could be interested too. And again, the great part there, is they would not make all the rehab mistakes many seem to make, because I've already put the property on the right path. Win win.

 no

 Usually no. I work with a handful of subs. But I do pick up new subs when/if my teams are too busy with my other projects. Also have most interior work inhouse.