All Forum Posts by: Robert Alexis

Have an accepted offer to purchase a two-family at 900k.  Comps estimate the appraisal comes closer to 850-870k and I’m not willing to cover the difference. What negotiations can I pursue as I gear up for the inspection and contracting?

Any creative terms I can include in the appraisal contingency?

I’ve been on my home search for a year and recently began working with a new buyer’s agent whose actions sometimes seem questionable.

Examples include: 1) Ready to jump on any and everywhere property, regardless of how close it is to my vision. 2) Submits offers on my behalf without sharing the written documentation with me nor any details outside of the offer price that we agree upon (not sure if this is a norm) 3) Has stated that sellers are not interested in bidding wars so my highest and best offer should always be submitted first, despite instances where bidding wars have ensued on properties of interest.

Am I reading too much into this or are these the actions of a questionable agent? 

Last year a foreclosed property I was looking to house hack caught my attention. I ultimately pulled out due to the underestimated cost and scope of the rehab. The house was eventually purchased and renovated and is now up for sale again and I’m highly considering purchasing, however, I’d want a thorough understanding of the rehab that was done given the amount of problems I know existed at that property (plumbing, mold, etc).

How best can I source that information if I were to make an offer? Can I ask for proof of the work? Would this have to be called out in the contract?

All insight is appreciated.

Last year a foreclosed property I was looking to house hack caught my attention.  I ultimately pulled out due to the underestimated cost and scope of the rehab. The house was eventually purchased and renovated and is now up for sale again and I’m highly considering purchasing, however, I’d want a thorough understanding of the rehab that was done given the amount of problems I know existed at that property (plumbing, mold, etc). 

How best can I source that information if I were to make an offer? Can I ask for proof of the work? Would this have to be called out in the contract? 

All insight is appreciated.

@Stephanie Jacobson I live in nyc and am looking to purchase a turnkey (or close to turnkey) home in either of these areas. Existing tenants is ideal (student housing preferably) with 4-8 doors

Looking into properties in the Binghamton and Albany area and am interested in connecting with a reliable agent, inspector, property manager, and contractors. 

Would be grateful for any recommendations folks can share!

@Danny Polanski  Struggling to find anything more than a two family but will look into this. I don’t love the idea of focusing on appreciation especially given the fluctuation of the market these days but not fully opposed to it 

Reaching out looking for advice and would love to hear from those who have also lived in a HCOL area and contemplated which of the two strategies to pursue, especially as a 1st time investor.

Background: I live in Queens, NY making over 100k per year and am looking to purchase my first property in the next 4-6 months. My approaches to each strategy would be:

Househacking: I'd target a two-family in Queens or Nassau County Long Island via an FHA loan. Purchase price range likely $600-725k and I'd live in one unit until I could refinance out of the PMI. At best rental income would likely only cover about 50-60% of the monthly payments. I can cover the rest without issue but this is a hefty expense.

Long distance: I’d target upstate NY (either Albany or Binghamton) where I’d look to purchase a cash flowing turnkey property for student housing (preferably). Purchase price range flexible from 100k to 300k depending on the numbers of the deal. 

Other factors: I have a time consuming day job that often requires late nights and weekend work which will make me reliant on a property manager I can trust if I go the long distance route.

Any advice?

Thanks again everyone for your words of advice. 

@Suzanne Player, after much back and forth and some recitation of the contract’s language, I was successfully able to terminate the contract using the inspection contingency. My own walkthrough legally constituted as an inspection due to how the contract was worded and I received my full earnest money deposit back accordingly. 

@Clayton Silva Thank you for your reply Clayton! The property is located in Long Island, NY. Prior to this deal my loan officer told me I can qualify for homes in the 900k range based on my salary.

For my own clarity, would the appraisal immediately create an increase in equity? I.e., does it increase my equity from the 55k downpayment to 55k + whatever the differential is between the appraisal price minus the remaining loan value from the HML?