All Forum Posts by: Yaro L.

@John Hickey Appreciate the advice, but as much as do my math on this property feels like I will leave myself very little room to be in the green. 

Seems like despite the house needing lots of work, the owner wants "market price" for the property (which they believe they'll get if they list it on the market).  That area is certainly heating up, just last week a home listed on the market for $790 and was gone in 2 days w/ $760k all cash offer.  

Will have to continue looking for some other project in the meantime. 

@Jose Godreau Appreciate the suggestions. 

After closely reviewing the current office space market in the area, seems like the average asking rent is anywhere from $18sf/yr-$22sf/yr  current tenant is paying close to $16sf/yr. I do think a moderate increase is warranted and should not scare anyone off. 

As for re-drafting and signing a new lease in its entirety I believe the original lease which was transferred over at closing to my corp name should hold up well if we simply sign a new extension. ( I guess i can check with my attorney). 

Hi Guys, 

Quick question: 

We acquired an office building with existing tenants earlier this year, one of the tenants lease is due to expire in a few months and seems they will be extending their lease. 

Question is, should I just sign an extension of prior owners lease or have them sign a brand new lease?

Also - would it be bad practice to moderately increase the rent (they haven't had an increase in about 3 years and their yearly $/sq ft is slightly below the market).  Or can I scare off the tenant by increasing rent at the first chance I get ? 

Ty

@John Hickey Thank you for your input.   

My rehab budget is only $100k, so it certainly will not be a gut renovation. Biggest change would be to finish the basement so the first floor 1br apartment can utilize it and extra space, otherwise, I was thinking to update kitchens / bathrooms / floors and put fresh coats of paint + add moldings. (the $250k included down payment, holding period for rehab and closing cost).

Ideally I'd love to update electric / pluming / ACs / windows.. but i guess that would have to be put on a back burner for now. 

In regards to taxes going up, the exterior (all brick) will not be touched, it looks fairly kept up.  From my experience with my own house, which is not far away, taxes did not budge. 

I just not sure if ROI is worth it here, or do I try to find other opportunities, especially if I do buy this property, I will have greater concentrated risk given my primary residence is within the neighborhood.

@Brian Garrett Good Catch, I think I am trying to hard to make the numbers work in my favor. Might have to move on and look else where. 

Hey guys, 

Need your advise as I am not convinced if I should move forward. Here is the potential BRRRR project:

Found a off-market property in Brooklyn, NY (south Brooklyn). Semi-attached legal 2-fam house which is located in a high demand (rental /sales) neighborhood. 

Property: 

Purchase Price: $700,000

Down Payment: $140,000

Closing Cost: $15,000

Rehab Cost Est: $100,000

6 Month Reno Holding Cost: $25,000

_______________________________________

My all in cash for purchase / rehab: $255,000

After rehab Rental:  $4500 monthly Rental from both apartments

NOI: $45,175

Monthly Cash Flow: $1,050

Annual Cash Flow: $12,115

Refi: 

New Appraisal: $850,000

Equity in the house $290,000

80% LTV of equity= $232,000

Refi closing: $15,000

Total Cash Pull out: $217,000

End Result: 

-After 1yr, total cash put into the project: $38,000

-Monthly Cash flow from both tenants $500

-Own a property will should continue to appreciate

Any suggestion, advice, pointers, criticism is welcomed. 

Hey Eli, 

You mind sending me a PM w/ details of the Sheepshead property ? 

We've worked a few projects in the area in the past. 

Thx YL

Came across this article this morning. 

Manhattan couple hasn't paid rent on their $4,754-per-month apartment in almost SEVEN years citing little-known 'Loft law'

-The Chelsea flat should have costed them $4,754.02 per month

-Their landlords say they now owe $410,000 or they have to move

-The couple says they have a right to live in the apartment because of Loft Law

Article: 

http://nypost.com/2017/01/08/couple-renting-chelse...

Hey Ivan,

Wonder if you can help me out, I am in the process of purchasing an office building in NJ as well and was looking for a reputable inspector near Manalapan, NJ (do you mind sharing who did you use ?)

Also, do you mind sharing your experience thus far with your purchase in NJ ? I also live in Brooklyn and this will be my first out of state commercial investment.

Appreciate your help in advance,

Yaro

Hi BP Community, 

First post on here and I was hoping to get some of your expert feedback on the deal I am currently reviewing. 

Close to pulling a trigger on Commercial Office building in Upstate NY (in a built out town  located near a court), fully occupied with with 4 tenants, with anchor tenant being in the same build for nearly 7+yrs now. 

Purchase price $700k

NOI $61,080

CAP RATE: 8.72%

All in all, deal seems solid / worthy based on the #s, my only hesitation is the value of the actual building and its future potential growth perspective.  From my understanding, the owner is selling the building to buy a bigger building in the same area. Any suggestions / thoughts about this deal from any experienced commercial investors are welcomed. 

Appreciate your help and input in advance. 

-Yaro