All Forum Posts by: Scott Schreiber

Rate is 11%, note was due quite a while ago, but most recently I got an extension to October 1, 2022. I'm not sure how lenders will react, considering I've been paying every month, but it sounds like they've run out of patience. 

The value of the property is probably close to $800K, and the outstanding balance is $455K, so depending on the possibilities, we'd be interested in getting a $500K loan, especially as that would give us an opportunity to clean a few things up and raise rents a bit, have a little more in reserves. 

@Jonathan Taylor I have a 4-unit mixed-use property in Westchester County, NY (3 resi, 1 bodega). The current loan on it is the hard money interest-only loan under which I bought it a long time ago, at a pretty exorbitant rate. Given the small loan amount (about $455K to pay off existing loan, maybe cashing some out if possible due to quite an increase in value), and the non-traditional building setup (not 4 resi, not big enough for true commercial), I've had trouble finding financing at a reasonable rate, despite the fact that I've been able to cover the mortgage even with the very high monthly payments (minus a few late payments because of Covid). Do you have any advice on finding long-term funding for that type of property? Or how I can get out of this loan very quickly? I know this property will cash-flow very well once I'm out of this loan, which is strangling the cash flow of the property. 

I've been looking a lot at Yonkers, including owning one mixed-use there. It's getting harder and harder to find deals though. I bought my current property at ~8% cap, now I'm lucky to find 6-7.

I disagree with what others are saying here. It all depends on what return you can get with the money you're not using to pay down your student debt. I refi-ed my debt down to 3.5ish%. Anything I'm putting my money into is getting an expected return much greater than 3.5%. If I can't find anything, then I'll use the money to pay down the debt. Otherwise, the interest rates on student loans are relatively low, so it's cheap to continue to borrow that money. 

Manhattanite here! I look mostly at Yonkers, a lot happening there that I like, and there are still cash-flowing properties, though they are getting fewer and far between.

Hey @Rob Amenta, welcome to the community! I'm pretty set on Yonkers, but looked at CT as well. My main issue was that I'm closer to Yonkers, since I live in Manhattan. Also, the areas I was looking at were mostly warzones, it seemed. At least that's where the deals I could find were. Happy to help in any way I can!

Hello David, and welcome. I live in Manhattan and have been studying markets for a few years now. I bought a property in Yonkers last year that has been cash flowing pretty well since I stabilized it (about 15% cash-on-cash now). Prices have gone up in only a year, and cap rates have gone down, but there are still properties that will cash flow in the area. Happy to discuss with you further if you're interested.

@Matthew Patrick a lot of it depends on what area you're in. Certain cities/counties/states have more easily accessible property records. There are also websites that can build lists. I've used PropertyShark with some success. 

Brian, this is awesome, and looks a lot like my Yonkers deal. Who's the lender, and how'd you get the loan?

I couldn't agree with you more. Even looking at the next deal has been easier, just in terms of knowing what I like in a property, what to watch out for, etc. 

This is awesome news! Congratulations! I'm excited to hear more about it.