Home Buying in East Flatbush>Question Details

Troy, Home Buyer in Brooklyn, NY

Should i purchase this 6 family property: Purchase price is $400.000 plus closing cost. Expense: $4000 mtly, income $5156 mtly.

Asked by Troy, Brooklyn, NY Mon Jun 21, 2010

Should i purchase this 6 family property: Purchase price is $400.000 plus closing cost. Expense: $4000 mtly, income $5156 mtly. I have to put down 30% which is most of my savings. Please help me before i sign this contract. u can also email me @ : itspeper2004@yahoo.com

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6
David Rogoff and Bonnie Chernin’s answer
Troy,

Before you part with most of your savings for an investment property, make sure you have a tax advisor, one who preferably has had experience in similar real estate matters. Keep in mind, when buying a property as an investment consider that the rent roll can change at any time. You should always factor in the possibility for sudden tenant vacancy, which could put you in a negative cash flow situation if you are depending on rent to cover your mortgage. It is also very important for an attorney to do a title search and history, and you must have an engineer thorougly inspect the property and make sure you know about any potential major and costly repairs that need to be done, or if there has been any serious water damage or structural issues that can compromise your investment. Zoning changes/updates and possible easements are important to know, as are new area developments and nearby construction that can sometimes cause appreciation or depreciation of nearby properties. Above all, get comparables for similar properties that have sold in the neighborhood.

Apparently you would be parting with $120,000 as dp, which is a substantial amount to risk if it is most of your savings. Please consider carefully, and get advice from a competent accountant and attorney you trust. If you need a referral feel free to give us a call.

If you have any questions, please call David at 917-593-4068 or Bonnie at 646-318-5031.

Good luck!

Best regards,

Bonnie Chernin & David Rogoff
Fillmore Real Estate
2926 Avenue J
Brooklyn NY 11230
917-593-4068 (David Mobile)
646-318-5031 (Bonnie Mobile)
E-mail: davidrogoff@Fillmore.com
0 votes Thank Flag Link Thu Jun 24, 2010
Looks like a deal.
But do put all figures in front with your accountant.
0 votes Thank Flag Link Wed Jun 23, 2010
Feel free to contact me to discuss with more details.
Web Reference: http://MichaelDvorkin.com
0 votes Thank Flag Link Wed Jun 23, 2010
The best thing for you to do is talk to your tax professional. They will give you the loop holes and the over all numbers to see if it is a wise investment or not. also remember some times your first deal is 9 out of 10 times the best deal.
0 votes Thank Flag Link Tue Jun 22, 2010
Unfortunately, a decision only you can make--consider discussing with your tax professional as he/she knows your finances best--check out deductions that may be beneficial to you in the long run, etc.
0 votes Thank Flag Link Mon Jun 21, 2010
It's hard to advise. It seems to be operating at a profit of over $13,000 a year. is that inclusive of tax ,insurance, and all expenses? If so it looks ok but you have to decide.
0 votes Thank Flag Link Mon Jun 21, 2010
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