All Forum Posts by: Yari Vargas

Hi @Pedro Sena im interested in learning about the managing of coliving/room rentals in the BX. I have some room rentals and would be interested in potentially partnering. I will DM you. 

Thanks for the feedback @Randi Plevy ! Sounds like its the route I need to take versus doing a typical cash out refinance.

This is the definition I found online:

"A Purchase CEMA is a strategy for reducing your closing costs when buying or selling a condo or house in New York City. A Purchase CEMA is also known as a Purchase Consolidation Extension Modification Agreement."

Basically you are paying taxes on the modified value, rather than paying taxes and closing costs on the entire refinance value.  im still unsure of all the implications since i am still researching this strategy, but its just seems very beneficial, and strange that i've never heard of it before.

The bylaws of the condo or Co-op vary depending on the property and their bylaw agreements. You would just need to be diligent in asking whether each property has subleasing restrictions and what are their requirements. you will find that some condos/co-op require you to live for a minimum of 2 years before you can sublease; or some may not allow you to sublease at all; or some may have a limit for the time frame in which you can sublease. it all depends. 

Hi BP,

I recently learned about a CEMA (Consolidation, Extension, and Modification Agreement), and from what i understand it is specific to New York State. Has anyone had any experience and success using this form of Loan? What are the pros and cons to modifying your mortgage loan with this method? I currently have a HELOC in which i was looking to consolidate when I refinanced. But now i am exploring the option of consolidating it via a CEMA.

Thanks!

@Raul R.  Thanks for the suggestion! I never even considered a personal line of credit. Since you have experience with both. do you mind sharing some pros and cons and why i would choose a personal line of credit instead of a home equity line of credit?  Essentially i'm looking for the best financing option for a 2nd investment property.

@Basit Siddiqi Thanks Basit! The ability to get capital absolutely out weighs the cost of an appraisal or HELOC fees. Via TD bank there is only a $99 application fee and an appraisal in New York is about $500. and there are only closing costs if your borrowing over $500k. Compared to a refinance where i would spend a couple thousand to refinance.

Hello All! I've been house hacking my 2 family home, for about 2 years. And now that I have the hang of managing the property I feel ready to take my next step and invest in a 2nd property. I am looking into using a HELOC to finance the down payment for the 2nd property vs Refinancing (Since i would avoid closing costs). Is there any reason that a HELOC would be a bad move? My intent is to invest in a buy and hold property in NYC, Specifically the bronx, since I know the market and it is where i currently have my 1st property. Thanks for your help!

@Jim Jimez  Congrats on your new purchase! Where in the Bronx do you own?

Hi @Soleila Gonzalez! Great to see your enthusiasm on REI! I am also looking to get started in Flipping in the bronx as well :) Have you made any headway in your journey so far? Do you have a preference in neighborhood?