All Forum Posts by: Riquelmi De La Rosaq

Are you calculating expenses? Management, Repairs, Cap Ex, Vacancy? If your Piti gets close to $1000 per month, $1400-1500 GOI leaves you a very thin margin. Plus if you lose that Tenant, you're dead in the water. Personally, I would sell the SFR and buy a 2-4 unit. There you have the option to live in one unit and have tenant/tenants pay for your mortgage and most if not all expenses. If you still want to live at your parent's house you can rent all units and get a much better cash flow. You should try using the Bigger Pockets Rental Calculator. Run your current SFR as well as a few 2-4 family homes in your area and decide for yourself.

If your area doesn't have a huge inventory for Multi-unit properties, look a little outside of your area. It doesn't have to be out of state, it could be a town over. Good Luck 

My advise is wait until you have stable work. You could go the route of going under contract, paying for inspection and appraisal. Go to underwriting, then you wait. Once the UW gets your loan information, they will ask you to confirm and re-confirm information in your app. This process can take up to a month+, then you finally get the "Clear to Close". The very last step, up to 48 hours before the closing date they will re-run your credit to verify no new credit (credit cards, new car or higher credit card debt is reporting because these things will change your DTI) and call your current employer to voice verify that you're currently employed with that company and will be employed with that company for the near future. You stated that you expect to be laid off in a few weeks so chances are that the UW will catch this and deny your loan in the last minute and you will be out $1000-$2000 plus time.

If you're going to invest in SFL, Miami isn't great for cash flow. 3-4 years ago absolutely, but now even in a neighborhood like Allapattah (Lower-middle class Dominican area) where I grew up, you're looking at 300K+ for a 4 Bed- 2 bath duplex that will only gross $1800 per month. If you look in South Miami the prices get ridiculous (Coral Gable, Kendall, Little Havana). $450K+ for a duplex that gross $2300-2600. I would recommend looking north of Miami. Broward County is much better for cash flow right now. Rents don't change much from Miami but prices are much lower so there is a better chance for cash flow. Miami has reached levels pretty close to 2006-2007 prices right now. Condos are in the same boat plus you have to deal with HOA's (ugh). If you plan on buying a condo in Miami Beach, don't plan on cash flow. That is more speculating and given where the Miami market is right now vs the height of the market back in 2007.... That would be up to you and how risk adverse you are.

If you are going with Fannie? No, Fannie wants you to have the 25% down plus 6 months reserves for a 4-plex. This means you can't have the seller hold a note for part or all of the down payment. You can't use HM or PM either. Now IRA/Annuity/Savings are all good. But you must show proof that it's coming from those accounts so have statements ready showing that the money has been in those accounts for months.

Thank you for the information, I'll get on that right now.

Hello,

I'm currently living in Nyc, I'm looking to invest in New Jersey. I'm looking for a property manager that specializes in the Newark NJ area. If anyone here knows any professional property managers in the area please let me know. I thought about self managing but given my work schedule, I may have unhappy tenants if I can't get back to them asap.

Thanks in advance

Thank you Stephan, I'll pm you for their contact info

So I found my first 4-plex in South Florida and I have been trying to close it for over a month now. The original plan was to buy it with the FHA 3.5% down program. I am from Florida and am currently working in NYC but planning to move back home in October. We got our clear to close after 6 weeks of letters, bank statements and explaining why I am working in NY and buying property in Florida. A few days later I hear that the Senior Underwriter has my file and is "asking for more information" 4 letters including 2 more from my local union in Miami later and she denied my loan. I was told that I needed to switch to a different loan program because the Underwriter didn't believe that I would be moving back to Florida to live in one of the four units. I was told by my broker that I could do a 15% down investment loan at 4% interest. This way the underwriter will push the deal through. I don't have enough cash for 15% down so I went back to the seller and asked him to hold a second mortgage for $20K for 12 months in order to get the deal done. He agreed today, I called my broker and he told me that we are good to go. An hour later he calls me back and tells me that the seller cannot carry the $20k and that I would have to come up with the full 15% down plus have 6 months PITI in reserves. He told me that "seller carry" is not an option because this is my first property. He went on to tell me that even at 20% down, seller carry wouldn't be an option.

For reference: Property price $280k so 15% down would be $42K seller would carry $20k and I pay the rest and have the 6 months PITI in reserves.

My questions are:  Am I dead in the water? Has anyone else run into this road block on their first deal? Is my issue lender specific? Would another lender be willing to let the seller carry the $20K?

Thank you for your reply, I was originally looking in Queens but I agree prices are pretty high here. I'm intrigued by the Bronx as well but I hear that the crime rate is pretty high there. I also looked at Long Island, Nassau to be exact but I can't justify  paying $15000+ per year in property taxes for a $200000 property. 

My family and I recently relocated to New York City a few months ago because of my job. Renting a closet for the same price that I would rent a Mcmansion in Miami isn't very fun so I'm interested in investing in a multifamily (2-4 units, owner occupied). So far I see that your money doesn't go very far here. Are there any BP members that are experienced in this extremely weird real estate market? I have been looking on Realtor/Zillow but everything I look at is either undercontract or cash only. I'm looking for something in the 200k-300k area. This would be extremely possible in most parts of America but New York seems to think their properties are made out of gold. Any help would be greatly appreciated.