All Forum Posts by: Xavier Navas

Welcome. I was in your same position until this year when i finally purchased my first inv property and renovated it in Long Island NY. ( i live on 2nd floor rent 1st - mortgage pays itself). If you need help with anything feel free to reach out. I can give you pointers on house inspections, taxes, pmi, rehab costs etc etc

Where specifically are you looking to buy and flip?

Have you considered the management of the properties? If you invested in a different state,  it would be wise to hire a prop management company.

I don't know much about investing outside of NY, but I am considering that as well . But i've heard you should invest in red states  because they favor landlords over tenants. You won't have as much trouble evicting them if that was the case. States like NY are tenant friendly and even if your tenant doesn't pay, they have a lot of leverage because the laws favor them and it could take you up 3 months if not more to evict them

What do you mean by, using the traditional conventional loan route or not. Do you mean you would buy the house cash?

If that's the case, I would suggest taking out a loan and that's because I like to mitigate risk and have cash in my pocket for emergencies. At the end of the day, your tenants would be paying your mortgage so its' not like you are paying any interest ;)

But if you have enough cash for the house plus an emergency fund (3-6 months of savings), then by all means buy it cash :)

Hi

I agree with both of you on the taxes. Taxes here are ridiculous. This year I bought my first investment property in Centereach and luckily my tenants cover my taxes and mortgage payments so my jobs paycheck is used for other things (cc payments, food etc etc)

I think that the best move to invest anywhere in NY is to look at multifamily units in BK or queens. Some multifamily units have a basement so you could rent out the units and live in the basement if you don't mind. 

I've done numbers for example lets say you buy a 5 unit building for 800k at 4% with 8k taxes a year and 2k a year in homeowners insurance.  Your montly payment on that building would be 4652. And if you rent each unit at 1200 you get 6000 per month.

Obviously you need to put at least 300 a month on the side for maintenance but you still get a decent return. Also I am assuming no PMI, but with PMI , add 200 a month to your mortgage payment . You'd still be victorious ;)