All Forum Posts by: Alexander Szikla

Condo conversion is VERY expensive in New York and likely unfeasible here. Plus condo quality usually requires expensive renovations. 

I'd suggest either:

1. Waiting for units to vacate and combining them to create "new units"

2. Splitting large units into new units

Granted, if you remain above four units - the "new" units will still be subject to rent stabilization. However, you get to "restart" the clock on pricing. And with 9 units, it isn't like a 5 or 6 where you could get below to fair market threshold. 

Curious to know what your primary business or W-2s are? 

Jersey City is a great market with high loan limits for FHA, sustained growth and a large rental pool. However, Union City has very stealthy and tough rent control guidelines. Union City often seems like a gem until you realize how restrictive it is.

Hey Josh - FHA is the way to go in NYC. Especially if you can find a four unit with a basement you can live in. This would be ideal in terms of cash flow (after a few years) and equity appreciation since you'd be achieving tremendous returns on limited equity in the form of appreciation, principal paydown and tax benefits aside from only cash flow.

An acceptable yield, cheap-brick/low basis triple net lease

Happy to help you get this going!

S-Corp for active income (i.e. management company). 

LLC for properties - each LLC should be held in its own respective LLC

It is easier to get references and verify income with NYC Sec 8 tenants. Plus, easier for them to get jobs if they find themselves out of work. 

If you buy property with existing Section 8 tenants - I would just "reverify" them as you would any other tenant you are inheriting - regardless of Sec 8 status. 

And what about when they paint without even asking? Have had this happen many times. 

Why use tax efficient capital for an investment that is already tax sheltered? 

Real estate benefits from so many tax benefits, you are sort of killing the juice.