Goal: Buy a class A or B multifamily for my family and my extended family while trying to reduce housing costs and build equity in NJ/NY area using a VA loan.Requirements / Wish List1. 2-3 bed room unit for my own family2. 1-2 unit for my extended familiy3. an extra unit for rental income4.

Over the last year, Courtney Buck Investments has been sourcing, raising capital, and investing in the large multifamily space, you may be wondering how we purchase to preserve capital, pay at or above a preferred return, and reduce our investor's taxes.

I know many have discussed being proactive with tenants, coming up with solutions for them to pay, etc. 

@Ruchir Kaul Another thing to consider is that with the foreclosure moratorium included as part of the CARES stimulus Act, foreclosures will dry up for at least another 6 months to a year reducing available inventory.

I'm currently negotiating w/ seller to reduce price to between $85k to $90k based on the major rehab costs.Total rehab costs: $31k get it rent-ready.Annual prop taxes: 2,237.72Total rent: Between 1,010 to 1,250 per month for both occupied units, depending on how bad the recession will become later in 2020.Lawn trim, snow removal, gas, electricity, & water: Tenant pays.Property management: I assume 10% of rent, so $101 - $125 a month.NOI per year: $8,670 to  $11,262.Flood insurance: None.Home insurance: $556/year paid outside of escrow.CAP rate: 6.46% to 8.6%.

While the world embraces tech tools to automate workflows and tasks, reduce errors, and thereby increasing precision, the Appraiser is basically doing the same thing they did 80+ years ago.  

He significantly reduced his staff and overhead and his landlord agreed to significantly reduce his rent.Don't assume everyone is struggling yet.And don't assume this will be done in 2 months!

Scenario 2The lender wants to increase the loan back to the original to $176,000, interest rate of 3.7% and the interest+ principal would be: $815Which would be a $116 monthly savings.However if we increase the loan back to the original $176,000 I would lose the $1,757 I have paid down from the principal.In this second scenario I would be paying $5,650 of closing cost plus losing the $1,757 I already paid down for a rough total of $7400Is this amount ok to get the interest rate reduced?

Short term, there is great market uncertainty but if we are able to position ourselves properly, and this has a different meaning to every investor, then in the long term, the benefits will outweigh what we are going through now.Not meant to be motivational, hahaha but more so a reminder to stay diligent, be proactive, and keep the wheels turning.

Be pro active