All Forum Posts by: Sebastian Naczas

It depends where the house is ... look for a very local small bank.

Jamie ... try Trustco or Kinderhook Bank ... they keep the loans (instead of selling them like all the bigger banks), maybe you can persuade them :)

Don't forget about hard money if the deal is really that good.

Good point, assuming your houses don't need major fixes.

Also since HELOC is open ended, I could still buy houses and withdraw cash out of it ... if draw period is over then get another HELOC. This way I'm skipping on paying bank all the horrendous interest they charge up front.

@Thomas Rutkowski

In my mind if I can pay off a house faster then I can enjoy more of a cash flow out of it.  And it doesn't cost me any extra, I just keep my life at the same level.  This will save me lots and lots of cash in the future, and makes me more stable with an option to leverage.  I guess the point is that bigger cash flow, which doesn't cost me extra.

Any thoughts on that?

Mike,

  This is how Albany NY is, things in a decent area are at about 1%.  You can get 2% but most probably you wouldn't want to live there.  If you are in Troy currently, maybe it's worth taking a look there for you and renovating there ... it's a lot easier to get 2% there.

All this depends on your situation, are you single or do you have family? Do you have a job other than taking care of REI? How much can you sacrifice?

  Think about all this ... but in general this deal is about normal for this area.

Thanks,

Sebastian

 It's hard to loose a good tenant, but I think it's worst to keep on loosing cash.  

  You're currently unsure if you can get such a good tenant, well you can.  I would set rent price at $1800 (or whatever is the top of the market is ... check out rentometer.com) if your place is as good as you say and not many of those are available you will get what you are asking for.  People who can pay top of the market are usually the ones who care to live in a clean and nice space, they will take care of your house.

 Do your due diligence, screen them through background check and credit report (check out https://cozy.co/for-landlords/tenant-screening).  Have them pay for the screening (that on it's own scares a lot of people who know they have no chance of qualifying).  Set the deposit at twice the monthly rent (tenant needs to know that they will loose that cash if they will not take care of your property).

  The first time around it seems like you were pretty lucky to get a good tenant.  Well the second time around you should not use your luck as much.

I think you have to sit tight and let this play out, there simply isn't much you can do.  If you end up getting this house, you will have an insurance on your end to cover up if anything was to happen in next 5 years.

If there is further damage because of all this snow that we are getting right now, insurance is suppose to take care of it ... before you buy it ... yeah you may end up loosing $900 (and it sucks), but that may be better than getting a house that is falling apart ... unless of course you can renegotiate the price again with the seller :)

I know right now you are probably very nervous about it ... just try to enjoy the ride ;) ... don't worryvsomething will work out ... there is not lost money, there are only good lessons.

Yes, I work in nano.  Most of those people live in suburbs, have their own families and houses.  However when young grads get hired they do look for rentals.  They like either something very close to work, or in a nicer part of Albany ie. Heldenberg.  It's a very small pool of people ... nano has also students, but there isn't a lot of them either ...

Albany NY is a very stable market, because all the state jobs, colleges, universities, hospitals, and nanotech. Good units are hard to come by, but if you have something really nicely renovated then you can rent way above market. I have a duplex block away from Albany Med (AMC) and rent both units to medical students. I think it works out just fine, but I'm local.

Nope.  You can go all PVC.