All Forum Posts by: Peter Nikic

They're everywhere. 

They're just not as good as they were in the past and many times it's hard to see how good they are until it's too late. I'd suggest the first investment to be close to home, Tampa is as good as anyplace else. Since you're there, start there. There is no advantage for you to look elsewhere. 

you've gt good advice here, especially from Bill Brandt.

start with the vacancy, then do 1 or 2 at a time as much as you can handle financially.

 Michael ir right, and with today's interest rates and lender restrictions, it could be as low as $1.5-$2M -- still a lot better than leaving $$ in bank, so don't let this stop you. I generally look at price ranges where my cash is equivelent to 30% of the purchase price. 

You also need $$ for closing expenses and unforseen expenses and shortgages in the first year (they almost always happen).

Allan what is NOO loan?

Miguel,

It's a long slow process where ever you buy. Having said this, I was living in the Bronx when I started, not much older than you. 

I bought my first condo in Poughkeepsie in 1987 for $61k. It was the height of the market but I was able to buy it for 10% down w an ARM that never went above the orifinal interest rate. Rates were a lot higher back then, about what they seem to be getting at today.

I've since bought in the Bronx, Harlem, Westchester and Dutchess Counties. But more recently, I decided t buy out of state. I started thinking about where and why? There are so many great places to invest. 

My where was narrowed down to TN, NC & SC

Why, because it was geograpgically half way between NY & FL, so for me it's ideal. I now have 2 investment properties in TN and hoping to close on a 3rd within the next month.

So think about your where & why as you're researching areas and eventually you will decide on a place. I would try to narrow it down to one and only one location outside of NY. You don't want to find yourself spreadout.

It took me 35 years to get where I am. I've learned a lot over the years, so reach out if you have any specific questions. 

Sounds like a great project, good luck!

 This is a good approach. 

I've found that the first year is the most difficult year financially (cash shortage, repairs etc). Having said this, I always try to have as much income as possible from day one. The only way I would want it vancant at closing is if I wanted to renovate for a rent increase. Otherwise I'd prefer it rented. I'd try to rent it myself or ask the owner to rent it as if he were going to continue to own the bldg. The less units in the bldg, the more I would want all of them rented. 

However since you're not the owner yet, you may not have a choice (unless it was written in the contract).

One important thing to know is what the prepayment penalty is on the mortgage you're assuming. If there isn't, and you're happy with the purchase price, then you can always refinance.

Where is this property located? and how many units?

 sorry, can't help you there.

it's still tricky. cap rates rise, so do interest rates. 

since interest rates already rose, just waiting for cap rates to go up in order to make deals work.