All Forum Posts by: Tom Weyer

So I am trying to sell my primary residence and the survey does not match the CO.

Basically, the house is 44’ x 30’ (and the survey confirms that) but the CO states it is 44’ x 24’

The thing is, there were definitely no additions to the house. There is a basement and the foundation goes all the way back the full 30’.

The buyer’s attorney has an issue with this (I don’t really blame him) - but how will this pan out?

My attorney put in a FOIL request with the town, but I am curious to see if anyone else has come across this.

Would anyone like to give me feedback on an Excel workbook I developed? I've been working on it here and there for a while now, but I think my rough draft is finished. I can send you the attachment; all I ask is for any feedback, good or bad. Plan on possibly selling it if it is any good.

Not quite. I saw what inputs it uses and based on that and my understanding of BRRRR, I developed my own spreadsheet for the analysis. I also had help from some rental analysis spreadsheets I found online for some parts of it.

It worked out on that spreadsheet, I was just curious to see if the numbers seem realistic to someone in the area. 

Maria, I wasn't really looking. I was just running some numbers without doing the necessary due diligence. 

I was just seeing if my BWAGs made for a better investment in Pittsburgh than on Long Island. I don't remember specifically where I was looking on Zillow.

There are a lot of big assumptions here because I have to do a lot more due diligence, but since I am brand new to REI I wanted to get your opinion. Is this realistic for Long Island? It's also been on Zillow for a year, so I have to be missing something.

Based just on Zillow (I know... I'll talk to my realtor/contractor, etc. and actually do the due diligence) the property is listed for $230,000.  It is a 3-family and similar homes sold for around 300-400k (big range, I know).  

So if I assume I can get it for 220k and the ARV is assumed to be 350k, it might be a good deal.

This is the part where I have to go see it with my contractor, but if it really only needs around $25-30k of work, I could get a mortgage of $176k and a down payment of $85k (20%) interest of say 5.5% (I would also need a private loan because I really only have $4,000 to put into this). I would get a private lender (hopefully) to lend me around 95K (to cover the down payment and the vacancy costs while I fix up the place (I assume 3 months of work)... maybe a 24 month loan if possible). I would positive cash flow the first year (because of the cash that covered that vacancy cost) and the second year during the refinance (total of around  $7,500 cash flow for the 2 years). 

The refinance would not give me enough equity assuming a 25% required LTV, but it would only be $8,450 out of pocket after paying the 1st mortgage and the private loan (the cash flow from the 1st 2 years covers most of that... I just have to save up $1,000 that year... I can do that).

After that the cash flow is in the $12,000 range per year (in the 100%s CoC return in my calcs). I was conservative with the rent estimate I think, too ($1,550 per month each unit). There are 2 garages, so I could likely get a bit more each month for that.

OPEX assumptions: 

Property Taxes      $11,000 (pretty accurate... maybe a tad conservative)

Insurance      $150/month (I don't know if this is accurate, but other analyses I've seen are close to this)

Repairs & Maintenance 8% (I assume a MFH need a bit more of maintenance than a SFH, so this could be a good est.)

Utilities       Paid by tenant

CAPEX 8%

Property Management     11%

Is anyone using a buy-and-hold strategy on Long Island, specifically in Suffolk County? I'm trying to get my rental analyses fairly accurate and was wondering if the 50% rule is a good benchmark in Suffolk. Houses are expensive and rents a fairly high, but taxes are also high. 

So does anyone have any thoughts? If you have experience renting on Long Island, let me know if and how you adjust the 50% rule.

No dice, huh? Well I'd be happy to meet for coffee sometime. I like the Starbucks on 25 right by you if you are in Selden. Let me know if you're interested. 

I'm new to REI and haven't made a deal yet due to lack of funds but I will be researching and reading until then. looking to do buy-and-hold. Found a great spreadsheet for the analyses that I have been touching up.

George, I appreciate the reply. Seemed like I'd be giving up a lot of the pie. I'll likely stay away from turnkeys for now, but could be good down the road.