Well I finally bought my first rental property after much time looking. Once rented It will do well as far as cash flow…close to $200.00 a month with Section 8 tenants. Perfect deal…house had new roof, windows, boiler and oil tank just needed paint and some new carpet and a good clean up. People who I bought from were a mess.
After reading many of the posts I sure do get envious. LI NY is a tough place to get a deal where the numbers work and this whole game is about numbers…always take into account your worst case scenario as far as the numbers go.
LOL I am already scanning MLS like a vulture for the second deal but I have to build up some reserves first. Thought about Taking a line behind number one but I would have to go to 100 ltv and I am not to comfortable doing that in a flat market…If I have to bail I need my equity protected for some wiggle room.
Yes, congrats! I am from LI and am also just starting out. I spoke with a hard $ lender to get pre-qualed and she was not very encouraging to me. So I am releived to know that 1st timers are having luck!
Thanks for the good luck wishes. Just curious here but why are you considering Hard Money? I happen to be a Mortgage Broker and my findings of Hard Money lenders here in NY is that they are looking for way to much equity in deals or they require large down payments. Not to mention they are expensive as far as Closing Costs are concerned.
Finding a deal in LI NY with 20 percent equity or more can be near impossible I am finding and I am in the real estate business. But they are there to be found for those that look hard enough I guess.
To be honest, I really did not consider using a Mortgage broker. When I bought my personal residence I initially went thru a mtge. brkr had had a bad experience so I went to a bank for my 1st mtge. It just so happens that i went out last night and ran into someone I know who is a broker and he convinced me to ctc him for a mtge when I am ready to do my 1st deal. The only downside is that I would have to do business with someone that I know socially.
But I will give it a try and see how he works out.
You can also try Quicken Rental Property Manager 2.0. It’s a little limited but gets you mentally organized for tax season. There’s some cheap copies on eBay but it’s only $100 and seems to be a bit cheaper than some of the other software I looked at. Those were kinda hit and miss. It does seem like Quicken is trying to fix a lot of little bugs and features that it’s currently lacking. They came out with 1.0 last year and are already up to 2.0 and I think there’s another patch after that. Might be more fully featured by 4.0 or 5.0.
As for mortage brokering, I’m also starting to learn the business. I guess you use Hard Money lenders when you have bad credit. Mortage brokers seem to work with both prime and subprime borrowers. I think as with everything you do need to shop around a little and some brokers do have access to the right products for the right need.