All Forum Posts by: Phil M.

I've never personally hit the 2% rule. In some markets it's pretty easy, in my market (NYC) its nearly impossible, even with skyrocketing rents. I have however hit the 50% rule. Remember, these are just rules of thumb and you should analyze every deal with a spreadsheet tallying all actual expenses. Just because it doesn't hit the 2% rule doesn't mean it's not a profitable investment.

I've looked at countless multifamily properties in my area and I don't ever recall any hitting the 2% rule mark. I'm also doing business in NYC, where the median sale price is about $500k in my county, so it's unrealistic to ever expect to hit that rule, I have made the 50% rule work in the past though. I currently have a 2 family rental property giving me about $200 cash flow per month per unit, which twice the amount investors usually look for in monthly cash flow per unit.

I'm gonna try and make it.

Does she have some sort of off the books income? Section 8 can be good as long as your unit passes the program's housing quality standards, but with all that student debt she'll certainly need some supplemental under the table income, if she makes too much on the books she'll lose that voucher and possibly not be able to afford the unit anymore..

Co-ops tend to have significantly higher HOA fees then condos. In NYC, some condos can have HOA fees as low as $50/month and as high as $400, while co-ops can be as high as the monthly mortgage cost itself (I have viewed a few with HOA fees in upwards of $1000/month).

Even with hard money you need SOME money..with no money you'd be better off starting in REI wholesaleing, and once your cash reserves are strong enough start investing in foreclosures..

you might use a couple bucks on earnest money, but you'll get it back once you sell the equitable right contract to the back end buyer

Yes, 203(k) is designed for owner occupancy.

Pre 1996 investors could.

As long as you occupy one of the units of a multifamily property, you are considered an owner-occupant (It its a 2 family home, you can live in one and rent out the other).

And yes, I've herd rumors of the investor moratorium being lifted so its a possibility investors could use this financing once again.

You'd be okay if the scenario was say, a multi-family property and you chose to occupy one of the units.

The HUD does state that the borrower has to have the 'intent' to live in the property, and I'm sure you could state it as your primary residence without actually living there, but it simply comes down to the fact that the property won't truly be owner-occupied and you didn't actually have an intent on living there. This grey area I would say is teetering on the edge of mortgage fraud.