All Forum Posts by: Steven Aponte

Thanks, Brett! Let's see how this plays out. 

Thanks, Minna!

How can I check for past due fees? Maybe require a letter of good standing from HOA?

I hadn't considered the reassignment of the approval letter. I'll raise that. In any case, it's their deadline - if the bank needs a delay to reassign, I'm ok with that. Still worth mentioning to get ahead of it. 

Thanks again!

Hello BP'ers!

Today I sell my depreciating asset (my car) to free up some funds and hopefully acquire a new income producing asset. So naturally, last night I was searching for homes to BRRRR. I stumbled onto one in an area I already invest in, at a price I can take down myself (no financing). The initial math pencils out for either a BRRRR or even an BR-AirBNB-RR (see what I did there?). The issue for me is: It's a short sale. Actually, I'd be taking over for a buyer who is backing out of his approved offer in the last 24 hours. He strung along the seller and bank and now there's only a week to close. Title is cleared already.

I've never done a short - and certainly not in 5 days! What should I look for, besides a physical walk through, clean title, and the normal property purchase math? Can past due HOA's come back to haunt me? Water/Sewer? Back taxes? I'd expect those all to show up as liens, but if they weren't filed yet, couldn't I get caught holding the bag?

I am skeptical of unicorns... What am I missing?

I've seen/done both -

If the tenant leaves the place in broom swept condition, and doesn't have any serious damage, then I don't hold back any security. I consider turnover costs part of my incentive to do right by the tenant to keep them there as long as possible. Otherwise, if they wreck the place, get pro cleaning (with a receipt) and withhold from security deposit.

I've also seen owners charge a standard move out/turnover fee. Typically that's disclosed in the lease upfront though. 

It all depends in part on your market and what you agree to upfront.  Hope that helps some 

I think BRRRRs usually aim for all in price not to exceed 70-75% of ARV. You're up near 93%! You're also coming in low on the 2% rule and your debt coverage. Lastly, your over time assumptions aren't realistic - 0% growth in expenses but 3% growth in revenues seems unlikely. I think the BP BRRRR calculator is telling you to lower your offer price ; )

Thanks all for your great replies and sorry for the slow turn around. My first job took over for a while. 

@Thomas S. very good points about not relying on security deposits and billing now. 

@Deanna McCormick and @Michaela G. interesting angle re: vandalism. I'll definitely look into this more. 

@George Hermann and @Juan Reyes I'll PM you, thanks! 

My plan right now is to speak with an attorney to understand legal options and with my insurance to understand options there. This being NYC, the courts are SO tenant friendly, the best option might be a bill for cleanup (that tenant likely won't pay), not renewing the lease, and then trying to get the payment on the back end via security or small claims.  I'll post back with an update after I speak with the lawyers. 

Thanks again all!

It's crazy I have to ask for advice on this, but here goes. I own a 3 family in NYC. I live on the ground floor with my wife. I self-manage (Why? WHY?!?). My second floor tenant is a nuisance. I will not renew her lease and if I were anywhere other than NYC I'd evict. But I digress. Last night I came home to find a pair of sneakers in front of the building entrance. This is a small building, the entrance feels like one for a private house. Except for these sneakers, wrapped in tape, and spray-painted yellow. The concrete was apparently the backdrop for this tennis shoe Picasso, because the ground was spray painted yellow as well. But wait, there's more. My front yard, all concrete, now looks like a Diwali festival, because in addition to the yellow spray paint, there is a 3 ft in diameter purple dot where the same tenant dropped a can of paint a few weeks ago. My question (besides do you have a good lawyer in the Bronx, New York) is how should I handle this? Should I bill this back to the tenant? If so, how much? Or is it just the cost of doing business since I didn't have a question about "aspiring graffiti artist" on my application. Thanks in advance, Fuming Red

Hello all. I have a coworker whose friend has a lead on two 10+ unit NYC buildings being sold by the city at a dramatic discount. A discount so low, it doesn't even cover the paperwork that it will require. Of course, the property needs a gut renovation. But this is still an amazing opportunity.

This coworker - "Bob", doesn't have much to contribute to the deal other than the introduction to his friend with the lead. I have financing lined up. I have a GC relationship, project managers, expediters, etc. Basically, I have most things I'd need for the deal to be successful. Not all, of course. I fully expect to trip up a bit along the way. This would be my first endeavor, but I know enough people in the space to make this happen.

Except Bob's friend with the building details. And Bob fancies himself my partner and doesn't want to release the info until he understands what his long term role will be. I don't see one, but I do think he should get something. Any thoughts on how to navigate this one? 

Thx!

John, I'm at 40,000 feet right now smiling broadly as I read your post. Great work. I agree -that was not luck. It was hard work and planning. I couldn't agree more about self-educating. I'm on a plan reading BP and analyzing deals. Keep up the great work!

now to read all the posts about the Solo401k... I like options ; )

thanks all for your reply. Yes, this is an investment - but both financially and for my family. Not too worried about the family side of it. 

Kathy, good points. I did consider the future payments and upkeep and factored them in. Honestly, I think I probably should have weighed the opportunity cost of sinking funds into an asset that will underperforming by design (I'm not charging market rent), but I'm comfortable with the returns - they are at least positive.

Andrew - We'll see... Here's hoping I don't regret it!

Wayne, great to know. Clearly I haven't negotiated with Freddie before.  Let's see how this plays out. Thanks again