All Forum Posts by: Yoann Mamy Randriamihaja

Hi All,

We are eager to start investing and making offers on one of the multiple families that we'd like to rehab and live in but we are having a hard time finding a good GC in Albany NY area.

We've had several GCs come and see the property but the vast majority failed to follow up with a quote.

Do you have any suggestion on how to find general contractors?

Any recommendation for GCs working in the Albany area would also be extremely useful! 

Thanks,

Yoann

Hi All,

My wife and I are new to real estate investing. We both come from France, where my wife was an architect specialized in home additions.

We are looking to get started in real estate investing in upper state NY (in Cohoes, or Troy, close to the Albany area). We want our first house to be a multiple family rehab that we will live in and rent the other(s) unit(s).

We will be using a FHA 203k for financing and have already selected a couple of great properties!

We are struggling a bit with finding a general contractor, and would happily welcome any tips you may have.

We want to learn from that first experience and start building our real estate business (buy and hold for rental and get started with rehabs as well).

Bigger pocket has been a HUGE help so far (thanks a lot for the podcasts and great content!) and we hope to move forward by getting more active on the forum and connecting with people.

Thanks for the help!

Yoann and Lucie

Thanks Mat!

Thanks Jerry, 

Purchase price plus repair is $160,000. If I were to follow the 2% rule, I would have to rent it for $3200 per month. Or if I assume that the maximum rent is $1400, then our purchase price plus repair should not go higher than $70,000, which is a very tight budget.

Thanks Ben,

The NOI that I mentioned was counting us as tenants as well, paying a 700$ rent. We are planning to finance through a 203k loan (3.5% down payment).

I understand now that this deal is not a good investment as is, even if it saves us money! We will work on the numbers.

Thanks a lot for your help!

Hi All,

My wife and I are looking to get started in real estate investment. To do so, we plan on buying a duplex, rehab it (my wife has 5 years of rehab experience from France) and either sell it directly for a profit or move in one unit and rent the other one.

Each unit could rent for $700 per month.

I'm using J. Scott spreadsheet to analyze the deal (which is great, thanks a lot!).

We are currently renting for $1400 per month. My question is: when analyzing this kind of deal, and assuming that we will move in, should I account for the money that I'm saving because my rent would be lower?

The NOI is close to $6000 per year but due to mortgage servicing, I get a negative cash flow of $3000 per year, while doing this deal helps me save $8400 per year in rent that I can then re-invest.

It makes sense to us on the long run (renting one unit helps pay the mortgage), but how to be sure that this is a good deal and that we are not spending too much in purchase/rehab? It's giving us a negative cash flow of $125 per door, while I keep reading that we should target +$100 per door.

Thanks for your help!

Yoann

 Thanks Jason!

Based on your experience, what would you recommend as a safe policy coverage? Do you have examples of law suits that went over the umbrella policy? Do all policies cover legal fees or should we carefully look for that?

 Thanks David!

I'm not sure then what's the point of incorporating in a different state. Is there a tax advantage to it? I would assume that you still have to pay taxes in the state where you are working.

Hi,

Does anyone know what happens if you create your LLC in a friendly state (say Nevada or Delaware), but operate it in your own state (that would be NY in my case) and get sued?

Which state laws applie to your LLC?

If you don't use a LLC to protect yourself, what would you consider a sufficient insurance coverage when using umbrella policies?

Thanks!

Hi Scott,

I'm curious to know why you found the 203k loan to be expensive?

I'm considering doing one myself to buy a multiple family in need of serious repairs. The rate is not that bad. It is true though that the PMI is significant (I'd like to know how to calculate what would be the actual rate if the PMI was included in the interest). But my understanding is that you can re-finance it pretty quickly (after a year).

What other less expensive options did you consider? In our case, it would have to be hard money lender (we don't have access [yet] to private money lender), and the financing cost would be significantly worse.

I'm also a bit concerned about the drawing process. How did it go in your case? Does all the spending have to go through the contractor or can you go to home depot yourself?

Thanks,

Yoann