All Forum Posts by: Przemek Kos

@Richard Wilson congrats on taking the first steps.

House hacking the first is your best bet. 3-4 family definitely a sweet spot. Not that familiar with NJ as I invest slightly north of you in Orange County (and commute to the city!).

Up to 4 family you should be able to get a mortgage with 25-30% down. Key is to find a local bank that mainly does mortgages, you don’t have to guess, the mortgage officer will usually have a good idea once you give them a few generic pieces of information, without doing a full application. If you have very low debt and as a result monthly obligations, your income to debt ratio will almost always look good and should not be a reason why you don’t qualify.

As to numbers... start with monthly mortgage and tax payments. As to other expenses, I always ask for p&l statements- even if I discount the numbers provided and layer on additional reserves, they will generally be a good starting point.

@Drew Wa depending on the tenor of the installment sale, IRS does have a minimum interest requirement - ie. if you claim a 0% interest rate, the IRS has a table with what the minimum interest rate should be on an installment sale of that tenor, and you will be paying taxes on the deemed interest.

On the capital gains front, I am not 100% certain, but it would make sense that any installment gains received in the first 12 months of your purchase of the property would count as short term gains and anything after 12 months would be long term, again, not certain as to this point.

@Francesca Perez I believe this is incorrect. ARM mortgages are principal and interest regardless of whether you are in the first (fixed) portion or later (adjustable) - ARM is not a IO product.

Work in the city, but live in Orange County. Invest in Orange County as well. Looking anywhere I can find good cash flow, interested in meeting up.

Thanks @Grace Lerner and @Adam Cherko, very helpful.  

I agree with Adam on appreciation, i don't factor any of it when looking at a property as I look at it from a different angle (income stream).  I have to overcome the hesitation on investing outside of my immediate area (orange county) and eventually pull the trigger if the numbers make sense. What is your general experience in partnering with others on those small multi families to venture out of your comfort zone (location wise)?

Also curious on the above question.  What is the current view on the market?

I Buy & Hold multifamily (still new, own 1 property) in Orange County outside of Newburgh.  Looking for another one.

Thanks Jarod!

What other financing options are there for non owner occupancy? Definitely open to seeing what is out there.  I am using a credit union on my current purchase and so far they have been OK.

I have been focused on Warwick/Cornwall school districts to date.  Sporadically, will peek at what Newburgh has to offer - definitely seems like there are a lot more options, but have a lot less confidence in venturing out there (as it stands today at least).

 I'm actually in Washingtonville :)

Newburgh is definitely interesting, keeping on my radar, but not yet ready to pull the trigger.  It seems like you have to get familiar with the different neighborhoods as some are worse than others.  Around the brewery, it does seem sketchy, but if you go up a few blocks inland the area there is copmletely different. 

Its hard to find something that isn't overpriced, generally. I, thus far at least, limit my search criteria to the top school districts.  I have been told Middletown / Newburgh are getting interesting, but personally I am not comfortable with the two, yet (still doing research and asking around).  At the end of the day, if you know what the going rents are and the cost to get in, you can probably find something that makes sense from a cash flow stand point.