House flipping has now become a lucrative venture for many real estate investors.

With its diverse neighborhoods and dynamic real estate market, New York presents a prime opportunity for this kind of investment. However, flipping a house successfully requires careful planning and a strategic approach.

So, let us guide you through the concept, and further help you understand how to flip a house in New York with some reliable steps. We shall also provide you insights into essential factors like the costs, and timeline for flipping a house.

Keep reading!

What Does Flipping A House Mean?

House flipping is a real estate investment strategy that involves purchasing a property, investing money into upgrading it, and selling it.

The main aim is buying cheap and selling for a big profit that covers the property’s original cost and any renovations or repairs you may have made.

So, in simple words, usually what house flippers do is buy outdated or distressed properties, fix them up, increase their value, and resell them to gain a profit. Sometimes flippers may even resell these properties to wholesalers without making any improvements.

How To Flip A House In New York?

Generally, flipping a house in New York involves the following:

1. Identifying Property For Investment
   Look for properties that are undervalued but have the potential for significant improvement. This often means finding properties in foreclosure, short sales, or those in need of considerable renovations.
2. Looking For A Good Location
   Location is a critical factor in real estate. Research neighborhoods that are experiencing growth, have good schools and are close to amenities like public transport, shopping centers, and parks.Areas undergoing revitalization or those with rising property values are ideal for flipping.
3. Considering The 70% Rule
   The 70% rule is a crucial guideline for house flippers. It suggests that you should not pay more than ‘70% of the property’s after-repair value (ARV) minus the cost of repairs’.For example, if a house has an ARV of $300,000 and requires $50,000 in repairs, you should not pay more than $160,000 for the property ($300,000 x 0.70 – $50,000).
4. Financing Your Flip
   There are many ways to finance your house flip:
   • Cash
     Ideal if you have substantial savings.
   • Hard Money Loans
     Short-term loans specifically for real estate investors, usually with higher interest rates.
   • Private Lenders
     Individuals who lend money based on mutual agreements.
   • Home Equity Loans
     Utilizing your existing home’s equity to obtain a loan.

   Each financing option has its pros and cons, so choose the one that aligns with your financial situation and goals.

5. Conducting An Inspection
   Hire a professional inspector to identify any structural issues, plumbing problems, electrical faults, or other potential repairs. This will help you estimate the renovation costs accurately and avoid unexpected expenses.
6. Renovating Smartly
   Focus on renovations that add the most value such as those in the kitchen and bathroom. Upgrade appliances, install new countertops, and improve the overall aesthetic of the spaces.
7. Selling The Property
   Stage the property after renovations are completed to highlight its best features. Professional home staging can make a significant difference in how potential buyers perceive the property.Finally, list the house with a reputable real estate agent who has experience in selling flipped homes to maximize your reach and sell at the best price.

How Much Does It Cost To Flip A House In New York?

Flipping a house in New York can range from $20,000 to $70,000 for renovations alone. Including acquisition and other costs, the total investment can be much higher, potentially reaching $100,000 or more, depending on the specifics of the project.

How To Flip A House With No Money?

Flipping a house with no money might sound impossible, but it can be done with creative financing strategies:

1. Partner With Investors
   Find investors willing to finance the flip in exchange for a share of the profits.
2. Wholesale Real Estate
   Contract a property, then sell the contract to another investor for a fee.
3. Seller Financing
   Negotiate with the seller to finance the purchase, allowing you to pay them over time.
4. Crowdfunding
   Raise funds through real estate crowdfunding platforms.

How To Get A Loan To Flip A House?

Here are some steps you can follow to obtain a loan for house flipping:

1. Prepare a detailed business plan that includes estimated costs, timelines, and potential profits.
2. Improve your credit score.
3. Look for lenders specializing in real estate investments.
4. Provide collateral to increase your chances of securing a loan.
5. Explore hard money loans, home equity lines of credit, or personal loans.

How Long Does It Take to Flip a House?

On average, it takes about 4 to 6 months to flip a house in New York. This includes 1-2 months for purchasing the property, 2-3 months for renovations, and 1-2 months for selling.

Factors that can affect the timeline include the extent of the upgrades, market conditions, and how quickly the property sells.

Are you looking to sell a house as quickly as possible? If yes, at Elite Properties, we buy houses in ‘As-in condition’, with no fees or commissions! Learn more!

FAQs

1. What are the risks of house flipping?
   The main risks include unexpected renovation costs, market fluctuations, and difficulty selling the property.
2. Do I need a real estate license to flip houses?
   No, but having a real estate license can provide valuable market insights and access to listings.
3. Can I flip a house part-time?
   Yes, but it requires excellent time management and reliable contractors.

Bottom Line

By following the outlined steps, understanding the costs involved, and exploring financing options, you can navigate the complexities of the New York real estate market for flipping a house profitably.

Whether you’re a seasoned investor or a beginner, thorough planning and diligent execution are key to a successful flip. Happy flipping!

Want to explore excellent, profitable investment opportunities? Contact us today!

Investing in buying multi-family properties has long been a hot choice, thanks to the long-term value and rock-solid stability they offer.

Why?

Because they bring in consistent rental income, make the most of economies of scale, and spread out your risk across multiple tenants.

If you are an investor striving to beef up your real estate portfolio, multi-family properties are a no-brainer!

But how do you find the best multi-family properties for sale and steer the buying process, particularly in bustling urban environments like New York City? We have got your back!

The strategies outlined in this blog will help you navigate the complexities of finding such properties and understand how to buy multi-family properties, ensuring a rewarding investment journey.

So, let’s dive in!

What Are Multi-family Properties?

Multi-family properties are residential buildings that are designed to house multiple separate families within a single structure or complex.

These can range from small duplexes and triplexes to large apartment complexes with dozens or even hundreds of units. Each unit generally functions as an independent living space, complete with its own kitchen, bathroom, and living areas.

Buying such property can help you mitigate the risk of vacancy and provide a more consistent cash flow compared to single-family rental properties.

You can also benefit from economies of scale in property management and maintenance costs, as managing multiple units within one location can be more efficient than overseeing several single-family homes spread across different areas.

How To Find Multi-family Properties For Sale?

Finding the right multi-family property involves a combination of research, networking, and leveraging various tools and resources. You can apply the following useful strategies:

1. Real Estate Websites
   Use platforms like Zillow, Realtor.com, and LoopNet that offer extensive listings of multi-family properties. These sites allow you to filter your search based on location, price, size, and other criteria.
2. Real Estate Agents
   Consult with a realtor with experience and expertise in multi-family real estate. This can provide you with access to off-market deals and valuable market insights.
3. Networking
   Attend local real estate investment groups and networking events to get opportunities and insider information on upcoming listings.
4. Direct Mail Campaigns
   To identify multi-family properties for sale by owner, send targeted mail to property owners. This can sometimes uncover motivated sellers who haven’t listed their property publicly.
5. Auction Sites
   Use websites like Auction.com that list properties that are being sold at auction, often at a discount.

How To Buy Multi-family Properties?

Buying a multi-family property involves a process. Below are some strategic steps to consider for a smooth buying process:

1. Assess Your Financial Situation
   Determine your budget, down payment, and ongoing expenses. Review your credit score for better loan terms.
2. Research the Market
   Investigate different neighborhoods, focusing on property values, rental demand, and local amenities. Target areas with high economic growth where vacancy rates are low.
3. Get Pre-Approved for a Mortgage
   Approach multiple lenders for pre-approval to understand your borrowing capacity and improve your attractiveness to sellers. Explore options like conventional, FHA, and VA loans.
4. Hire A Real Estate Agent
   Hire an agent who specializes in multi-family properties and knows the local market to help you find and negotiate properties.
5. Conduct Due Diligence
   Conduct thorough inspections and financial assessments. Review the property’s rental history, occupancy rates, and expenses. Hire a professional inspector to identify any structural or maintenance issues.
6. Make an Offer
   Submit a competitive offer with contingencies for financing, inspection, and appraisal.
7. Secure Financing
   Work with your lender to finalize the mortgage, providing necessary documentation and completing appraisal requirements.
8. Close the Deal
   Sign the mortgage agreement and property deed, pay closing costs, and receive the property keys.
9. Manage the Property
   Decide between hiring a property management company or managing the property yourself. Ensure regular maintenance, timely rent collection, and compliance with local laws.

Pros And Cons Of Buying Multi-family Properties

Pros

• Steady Income generation
• Economies of scale
• Risk diversification
• Potential tax deductions

Cons

• Management complexity
• Larger investment cost
• Market instabilities impacting property values and rental income

Buying Multi-Family Properties Through Elite Properties

Elite Properties is a renowned real estate company based in New York. With years of experience and a deep understanding of the local market, we offer a comprehensive range of services to help you with your real estate transactions.

Whether you are looking for multi-family properties for sale by owner or by third parties like agents, having professional support can ease your search and buying. Choosing to buy through Elite Properties gives you access to prime multi-family properties and ensures a seamless buying experience with added financial perks.
Contact us today to explore the best multi-family investment opportunities in New York.

Final Thoughts

By leveraging the strategies outlined in this blog, you can navigate the complexities of finding and buying multi-family properties more confidently and efficiently.

Whether you’re drawn by the potential for steady income, the diversification benefits, or the economies of scale, multi-family properties present a compelling case for long-term investment. Further, experts like Elite Properties can help enhance your chances of success, offering professional guidance every step of the way.

Ready to make your move? Contact Elite Properties now and take the first step towards securing your future in the New York real estate market.

Multifamily Properties – FAQs

1. Are multifamily properties considered commercial?
   Multi-family properties with five or more units are typically considered commercial real estate, while those with four or fewer units can be classified as residential.
2. What is considered a multi-family property?
   A multi-family property is any residential building containing more than one housing unit, such as duplexes, triplexes, and apartment complexes.
3. What is the best market for multi-family properties?
   Markets with strong rental demand, dense population, and economic stability are ideal for multi-family properties.
4. How to find the cheapest place to buy multi-family properties?
   Researching emerging markets and less populated areas can yield more affordable options.
5. What to look for when buying multi-family properties?
   Key factors to consider include location, condition of the property, rental income potential, occupancy rates, and local market trends

Mortgage buydowns have become common over the past few years with the soaring mortgage interest rates in the housing market.

Buying a home is a huge financial decision, and obtaining a mortgage can help you fulfill your needs at large. But let’s not forget that you also have to pay the price for borrowing money – the interest!

Predictions and trends keep going up and down and so do the interest rates. Finding a way to reduce your mortgage interest rate can give you a big relief. Here is where mortgage buydowns can help you considerably if you are willing to put some additional money upfront.

In today’s market, this financing technique is attracting more buyers due to which sellers and builders are ready to fund mortgage buydowns themselves.

So, let’s dive deep into understanding more about mortgage buydowns and help you make an informed decision in your home-buying journey.

What Is A Mortgage Buydown?

A mortgage buydown or buydown mortgage is a financing arrangement that offers a borrower a lower mortgage interest rate for a specific number of years or for the life of the loan. In order to offset the difference between the standard rate and the lower rate, the borrower pays mortgage points at closing.

Mortgage points, which are also known as discount points or prepaid interest points, are nothing but a one-time fee paid upfront.

So basically, in a mortgage buydown, the borrower buys down the interest rate by paying extra cash upfront.

How Much Does A Mortgage Buydown Cost?

The amount that you as a borrower take out on the loan determines how much each discount point will cost. A borrower’s payment of one point equals one percent of the loan amount.

A mortgage lender might, for instance, offer a borrower an option to receive a .30% interest rate reduction in return for one point. Therefore, if they were to obtain a $600,000 mortgage at a 5% interest rate, paying $6,000 (which is 1% of the loan amount) would reduce the borrower’s interest rate to 4.70%.

Who Can Do A Mortgage Buydown?

Usually, it is the borrower (the buyer) who buys down a mortgage and benefits from it. However, sellers and builders too can buy down mortgages for the buyers to attract them by lowering their interest rates.

How Does A Mortgage Buydown Work?

A mortgage buydown can work either on a temporary or permanent basis.

• Temporary Mortgage Buydown
  This type of buydown lowers the interest rate for a set period. It means that after the buydown period ends the interest rate will increase each year until it returns to the original rate.
• Permanent Mortgage Buydown
  In this type of buydown, the mortgage owner buys the interest rate for the entire loan term. For the duration of your loan term, the interest rate won’t rise unless you have obtained an adjustable-rate mortgage (ARM).

Structures Of Mortgage Buydown

In addition to the mortgage buydown for the entire loan term (permanent buydown), the lenders use certain structures to facilitate the temporary buydowns. Although lenders offer their own versions, let’s have a look at some of the common structures below.

1. 0-1 Buydown
   The interest rate would decrease by 1% during the first year of the loan under this temporary 1-0 mortgage buydown, and it would return to its initial rate in the second year.
2. 2-1 Buydown
   In a 2-1 buydown, the interest rate is lowered by 2% in the first year, 1% in the second, and then goes back to normal in the third year.For example, in the first year, the interest rate on a mortgage with 5.25% would decrease to 3.25%, increase to 4.25% in the second year, and then return to 5.25% in the third year.
3. 3-2-1 Buydown
   This is yet another structure under temporary buydown, your interest would decrease by 3% in the first year, 2% in the second year, and 1% in the third year, after which it would return to the initial mortgage rate.

Benefits Of Mortgage Buydowns

Here’s how buying down mortgage rates can benefit you:

• If you anticipate an increase in your income beyond the first few years of owning a property, a buydown can temporarily lower the monthly interest payment until you are in a more comfortable position to pay the entire amount
• Over the term of your loan, you’ll pay less interest.
• With buydowns builders and sellers can increase the appeal of their offers.
• In order to avoid paying current rates altogether, you may be able to refinance at a lower rate in the future because of a temporary buydown that may delay the full interest payments.
• It can also be a good option for buyers who want to safeguard their cash reserves which could have been affected by the down payment.

Risks Of Mortgage Buydowns

Apart from benefits, there are some risks too that you must consider before you decide to buy down the mortgage rate. These include:

• Both your monthly payment and interest rate could go up in a temporary buydown.
• If you are unable to afford the increased payment, you risk having your property in foreclosure.
• Temporary buydowns may also be problematic if a buyer anticipates refinancing at a cheaper interest rate but the rate doesn’t drop.
• Your overall closing costs will be higher.
• Your savings may be completely depleted to pay for the buydown mortgage cost.

Bottom Line

It could be appealing to take advantage of every opportunity to obtain a lower mortgage rate. However, your interest rate is just one aspect of your mortgage. Keep an eye out for closing costs, since these can completely nullify any savings you may have received from a rate buydown.

Make sure you understand everything about a buydown, including what you stand to gain, how much it will cost, and what you might have to give up in order to obtain it.

Need more profound guidance to ease up your home-buying process? Get in touch with Elite Properties!

What is homesteading? If you think homesteading is only limited to moving from the city to the middle of nowhere across the country and living on an extensive off-grid property, then you really need to read this blog. Unlike what you might think, homesteading entails much more than you imagine.

In fact, you can be a homesteader even by continuing to live where you are!

Though it’s an age where urbanization and digital connectivity dominate, many people still prefer to seek a return to a simpler, more self-sufficient lifestyle by homesteading their property.

This blog will delve into understanding the concept of homesteading, its historical context, practical steps to get started, and specific considerations for those interested in pursuing such a lifestyle.

So let’s get started.

What Is Homesteading?

Earlier homesteading generally referred to moving to a whole new region and owning land where you can build a house to reside and engage in small-scale farming to become self-sufficient.

However, modern homesteading is still associated with farms and holds the spirit of ‘moving away’ not from your current residence but from industrial systems. This means you can even homestead right from where you are by engaging in urban or suburban homesteading.

These days, more and more people are interested in urban homesteads where people live sustainably through urban agriculture.

Choosing to live independently with a self-reliant approach, instead of just settling in a city or rural area, is what we can call homesteading in modern times.

Homesteaders strive to minimize their dependence on external resources by aiming to create a self-sustaining ecosystem on their land and adopting a holistic approach to living.

History Of Homesteading

Homesteading has deep roots in American history, dating back to the Homestead Act of 1862.

The United States began to devise plans for distributing federal or public land to individuals in the 1840s and 1850s. As a result, the Homestead Act was enacted in 1862.

In the past, Homesteaders could claim government-owned land under this Act, provided they lived there, farmed it, and made improvements to it for a period of five years. This policy aimed to encourage westward expansion and settlement, offering opportunities for many immigrants and citizens.

The federal government allotted 270,000,000 acres (420,000 sq mi) of public land for private ownership and granted 1.6 million homesteads between 1862 and 1934. This accounted for 10% of all US land in total. The government discontinued the practice of homesteading in 1976. However, in the state of Alaska, it was continued until 1986.

Though the Homestead Act was repealed in 1976, the ethos of homesteading – self-sufficiency, hard work, and a connection to the land – continues to inspire modern-day homesteaders.

How To Start Homesteading?

So, how can you start homesteading? Let’s get straight the steps below:

1. Consider What Homesteading Involves
   Homesteading is a significant commitment that requires time, effort, and a willingness to learn various aspects. Reflect on whether you’re ready to adopt the lifestyle changes and challenges that come with homesteading.
2. Set Goals For Yourself
   Ask yourself why you want to homestead. Is it to grow your own food, reduce your environmental footprint, or become more self-reliant? Defining your goals will help you create a focused plan and measure your progress.
3. Decide Where You Want To Live
   Whether you choose a rural setting or a suburban plot, ensure it aligns with your goals and has the resources you need to thrive.
4. Make A Budget
   Create a detailed budget that includes all the costs you may incur. Budgeting your finances carefully will help you avoid any unexpected setbacks.
5. Start Small
   It’s easy to get overwhelmed by the sheer scope of homesteading. Start with small, manageable projects and gradually expand as you gain experience and confidence.
6. Learn To Preserve Food
   Learning to can, freeze, dry, and ferment foods will allow you to preserve and store your harvests. This will ultimately increase your food security.
7. Connect With Other Homesteaders
   Building a network of like-minded individuals can provide valuable support, knowledge, and resources. Join local homesteading groups, attend workshops, and engage with online communities.
8. Learn Important Skills
   Finally, learn and practice crucial skills to fuel your homesteading journey such as gardening, composting, sewing and mending clothes, and construction and repair skills.

How Do Homesteaders Make Money?

Common ways to make money as a homesteader include selling surplus produce, eggs, and meat at farmers’ markets; creating and selling handmade crafts; offering workshops and agritourism experiences; and freelancing or remote work.

Some homesteaders also monetize their knowledge and experiences through blogging, vlogging, and writing books. Diversifying income sources ensures resilience and sustainability for homesteaders.

How Does The Homestead Exemption Work In New York?

The Homestead Exemption in New York provides property tax relief for homeowners. This exemption reduces the assessed value of a primary residence, lowering the amount of property taxes owed.

To qualify, homeowners must use the property as their primary residence and file an application with their local assessor’s office.

The Final Say

Homesteading is a rewarding journey toward self-sufficiency, sustainability, and a deeper connection with nature.

If you’re considering homesteading in New York, take advantage of the resources and communities available to support your journey. Embrace the challenges and joys of homesteading, and you’ll find yourself living a more meaningful and sustainable life.

Need help in finding land for a homestead in New York? Get in touch with Elite Properties today!

FAQs

1. Is it still possible to homestead in the US?
Although the Homestead Act no longer exists, you can still find plenty of free land provided you meet certain requirements.

2. Who started the homestead?
On May 20, 1862, President Abraham Lincoln signed the Homestead Act and on January 1, 1863, Daniel Freeman made the first claim under the Act.

3. Which state offers the best homestead exemption?
In terms of the value of property that can be protected, homestead protections in Texas, Florida, Lowa, South Dakota, Kansas, and Oklahoma are among the broadest in the US.

Real Estate Investment Group or REIG can be a good fit for you if you are someone new to real estate investing. Even if you aren’t new to real estate investing but lack the time or money to do it, REIG is for you.

But what exactly is a REIG?

In essence, REIGs allow the investors to pool their resources and take advantage of the potential returns of real estate ownership. Not only this but they free up the investors from the hassle of actively managing real estate properties.

Doesn’t that sound great?

So, let’s dig deeper and understand what Real Estate Investment Groups are, how they work, and much more.

Here we go!

What Is A Real Estate Investment Group (REIG)?

A REIG is a group of private investors that focuses on real estate investment, by pooling money, expertise, knowledge, and/or time to purchase income-generating properties.

Basically, all REIGs combine funds from different members and investors and utilize them to buy and invest in real estate while giving the participating investors a return, such as an interest payment or profit split.

In broad terms, REIGs give investors access to the advantages of real estate investing – like potential capital appreciation, tax benefits, and passive income – while lowering the costs and risks related to owning a single property.

Real Estate Investment Groups can opt to purchase, finance, sell, or renovate properties in an effort to increase their earnings. Purchasing multiunit properties, selling units to real estate investors, and taking over property management and upkeep are common activities that REIGs perform.

Each REIG will have a different investment strategy, but it may use any of the common real estate investing strategies, such as buying commercial real estate, rehabbing and renting, holding mortgage notes for properties, or fixing and flipping properties.

How Does A Real Estate Investment Group Work?

As a potential investor, it is important to understand the functioning of REIGs. Check out below how they work:

1. A REIG is formed by a group of individuals who collectively want to invest in real estate.
2. To structure this group, these individuals usually form a limited liability company (LLC), partnership, or other legal entity.
3. Depending on the size of the group, minimum investment requirements, and the overall investment strategy the members contribute money to the group. This money is then grouped to form a large investment capital.
4. Further, experienced professionals in the management team conduct research and perform analysis to identify potential investment opportunities for acquiring suitable properties.
5. Once a property is acquired, the REIG management team takes charge of the property management. This may include maintenance, repairs, tenant management, and other day-to-day management activities.
6. According to the terms of the investment agreement, once the returns on investment are generated they are distributed among the group members. The distribution can be based on some predefined criteria or factors like capital contribution percentage.
7. Talking about decision-making, the structure and governance of the REIG play a great role. Usually, the management team makes strategic decisions on behalf of the group, but some groups may also allow the members’ involvement in the decision-making process.
8. Lastly, the investment duration and exit strategy of a REIG can vary from group to group depending on the specific investment objectives and the terms mentioned in the investment agreement.

Pros And Cons Of Joining A REIG

Below are some pros and cons of a REIG that you should consider before joining one Have a look!

Pros

• You can invest in bigger real estate deals and hold tangible real estate with less money.
• Because the experts in the group take care of all aspects of property acquisition, and management. Also REIGs offer a passive investment opportunity.
• Joining a REIG gives you access to the knowledge and experience of seasoned experts. They are well-versed in the real estate industry.
• You and the other investors split costs associated with maintenance, repairs, and property management when you invest in a REIG. This can lower personal financial obligations and increase cost-effectiveness.
• Joining a REIG provides you opportunities to network, and work together with other investors who share your interests.

Cons

• It is possible for investment goals, management styles, duties, or outcomes to clash or come into conflict.
• You have little authority to make investment decisions if you’re a member of a REIG. The group’s management team makes strategic decisions, which can restrict your ability to personalize investments to your tastes.
• Depending on the terms of your agreement, it could be challenging to pull out your money.
• A membership fee might lower your returns.
• Generally speaking, REIG investments are less liquid than stocks or other publicly traded securities.

FAQs

1. How can you find REIGs to join one?
To find REIGs, using professional networking groups and websites like LinkedIn or the National Real Estate Investors Association can be a good start. You can also reach out to financial advisors or local real estate agents who specialize in real estate investments. Also they may help you connect with professionals or firms involved in such investment opportunities.

2. How much money do I need to join a REIG?
Thoroughly perform due diligence while assessing REIGs. Examine the management team’s performance history and experience. Also, understand the group’s investment strategy and objectives, and pay close attention to the terms and investment structure.

Further, it is also advisable to speak with a real estate expert and financial advisor. They can help determine whether REIGs are suitable for you depending on your investing goals, risk tolerance, and financial circumstances.

We hope you find this helpful!

If you are looking to buy or sell real estate properties in New York by seeking expert assistance, get in touch with Elite Properties today!

 Single-room occupancies (SRO) have existed and have been used for centuries. Yet, they have a complicated history!

Today many Americans are facing a home affordability crisis as a result of the rising cost of housing in cities like New York. In such high-cost markets, SROs, generally boost the supply of affordable housing and decrease homelessness.

On the other hand, there’s a common trend that people are purchasing these types of properties and converting them into single or multi-family residential to gain better profits.

So, let’s find out more by taking a closer look and understanding single-room occupancies (SROs) in New York.

What Is A Single-room Occupancy (SRO)?

A furnished single room that can be rented on a monthly basis or for an extended period is called an SRO.

Generally speaking, SROs are multi-tenant houses or apartment buildings with small individual rooms that share a kitchen and a bathroom in common areas. This type of housing is usually targeted at people with low incomes or single adults who prefer a minimalist lifestyle.

SROs are similar to low-end hotels, commonly huge buildings located in big cities. In fact, a lot of them feel more like hotels but with fewer amenities.

Modern SROs today are marketed as co-living spaces or micro-apartments. A co-living space is a form of communal living in which you get a private bedroom and the rest of the rooms or common areas are shared. A micro-apartment is a tiny studio which is a small, two-room flat with a kitchen or bedroom combo and a bathroom.

Classification in SROs

SROs are usually classified as “Class B” residences in New York City.

A “Class A” residence is regarded as a proper apartment rented on a monthly basis or more. A “Class B” residence is a multiple dwelling that is rented out on a temporary basis to individuals or families who are lodged with or without meals.

Class B properties are a level below Class A properties and are typically older, with renters who have lower income, and may or may not be professionally managed. Commonly, rental income under Class B is less than Class A.

For SROs, a Certificate of Occupancy will say “Class B,” “Rooming Units,” or occasionally just “Rooms” or “Furnished Rooms.”

Background Of SROs

SROs were there for a long time, but they peaked in the late 1800s when a large number of workers from the West and Europe arrived in NYC and other major eastern US cities in search of work in the rapidly industrializing eastern region.

Many of these workers were single and sought out single rooms; female SROs had curfews to keep residents safe, and hot meals were usually served in the common areas.

Men’s SROs, on the other hand, quickly became a magnet for vagrants and criminals. Further, SROs began to decline by the mid-20th century, primarily because the majority of urban residents wanted them gone.

Though SRO housing initially emerged as an economical alternative for urban migrant workers, they later saw restrictions and declines as a result of changes in housing laws.
Many were destroyed or converted midway through the 20th century as a result of urban redevelopment initiatives.

Current Status Of SROs In New York

Today, single-room occupancies have once more gained attention real estate pricing keep rising. In fact, they are beginning to draw in a younger, up-and-coming demographic.

There are about 210,000 small units that are currently available in NYC but they are unlikely to satisfy the potential demand for a cheaper renting choice, given that there are about 1.2 million single adult renters in the city.

This is why renters are drawn to SROs because they offer more privacy, independence, and affordability, which can potentially raise demand for such affordable residences.

Also, SRO-designated properties often entice investors with reduced prices and revenue potential. However, due to restrictive rental policies and limited financing alternatives, these properties are ending up being an operational burden rather than a profitable investment.

As a result, standard multifamily residential apartments are what most of the SRO-designated property owners are constantly trying to convert such SROs to.

Converting Single-room Occupancies SRO

SROs mostly emerged after the Great Depression, when owners started turning their residences, such as townhouses and brownstones, into SROs. Because these SRO rooming units can no longer build for profit in NYC.  The property owners are constantly converting them into regular multi-family residential or Class A apartments.

An architect will apply to the New York City Department of Buildings (NYC DOB) for a new Certificate of Occupancy and do all the required alterations to bring the property up to code in order to convert SROs into Class A apartments. The application also require a copy of HPD’s Certificate of No Harassment.

What Is A Certificate Of No Harassment (CONH)?

To convert a property out of the SRO category or to conduct any significant changes to an SRO. The owner must get a CONH from HPD.

This certificate serves as proof that the owner did not harass any of the SRO unit tenants. This aimed at persuading them to vacate the building for improvements.

Common Uses For SRO

Those in need of affordable accommodation benefit most from SROs. They’re an excellent option for those on fixed incomes, low-wage workers, and students.

SROs are also a great choice for those who require temporary housing. Temporary employees and recently divorced individuals can also easily reside without signing a long-term lease.

That is it!

We hope this blog has helped you gain better insights into SROs.

If you want to make informed decisions while dealing in real estate, professional guidance is the key. You can get in touch with Elite Properties’ experts now!

Land ownership is a considerable form of property ownership, navigating the intricacies of which is essential for anyone looking to own or invest in real estate.

Whether you want to build your dream home on a piece of land or simply want to make a real estate investment, your unique needs and requirements play a great role in deciding what type of land ownership is suitable for you. Here is where understanding the types of land ownership becomes important.

Well, there are usually two types of land ownership options: freehold and leasehold. Both these types of ownership have their own pros and cons.

Let’s take a deep dive to understand both freehold and leasehold ownerships more closely so that you choose to have the best-suited land ownership for you.

What Is Freehold Ownership?

Having freehold ownership means you are the sole owner of the land and any buildings on it for all time. So, a freehold property is any estate that is “free from hold” by any entity other than the owner.

As long as the usage of the land complies with local regulations, you have the right to use, modify, sell, and transfer the property without any restrictions. The right to ownership is inherited and is transferable to future generations.

Generally, undeveloped land parcels and many single-family houses are held as freehold properties, granting owners complete control over their real estate holdings.

What Is Leasehold Ownership?

Subject to the terms and conditions of a lease agreement, purchasing the right to use and occupy the land and any structures on it for a certain period is known as leasehold ownership. The lessor or landlord regains ownership of the property from the lessee or tenant after this period.

As payment for using the property, tenants are usually obliged to pay ground rent to the landlord. Ground rent is a fixed amount that is outlined in the lease agreement and is often paid annually or semi-annually.

Due to the scarcity of land and high property values, leasehold ownership is common in metropolitan areas and developments.

Freehold Ownership vs. Leasehold Ownership

To understand whether freehold or leasehold ownership is better for you, you should consider the below key comparable factors and decide which type of land ownership best suits your needs.

1. Ownership Rights
   As a freeholder, you get the absolute ownership rights of the property. Since you are the property’s sole owner, you have total authority over how it is used, modified, and disposed of. Leasehold ownership grants the right to occupy and use the property for a certain period which is mentioned in the lease agreement.
2. Tenure
   Under freehold ownership, the owner has a perpetual and constant right to the property. Land Ownership under a lease is temporary and for a specified period mentioned in the lease agreement. Unless the lease is renewed or renegotiated, ownership of the property reverts to the lessor after the end of the lease term.
3. Cost
   Since you are just buying the right to occupy the property for a certain period, leasehold properties are usually less expensive to buy than freehold properties. Nonetheless, it’s crucial to account for the extra expenses associated with leasehold ownership, such as ground rent and maintenance fees.
4. Sale And Transfer
   Freeholders can sell, transfer, or lease the property independently. While subject to the lessor’s approval and terms, the lessee has limited rights to transfer leasehold interests.
5. Decision-making
   Freeholders have the exclusive decision-making authority over the property. Leaseholders are required to adhere to lease terms and guidelines when it comes to decision-making.
6. Usage Restrictions
   A freeholder has complete freedom to use the property as desired. However, there could be certain restrictions under local regulations. For example, any construction or modification to the property must go by the rules established by the municipality in which the property is situated. In leasehold ownership, the property is still owned by the landlord, who has the authority to impose usage restrictions. Depending on the conditions of the lease agreement, tenants may be restricted from subletting, modifying, or using it for a specific purpose.
7. Resale Value
   Due to the owner’s total control over the property and the land it is situated on, freehold ownership usually carries a higher resale value than leasehold ownership.

Pros And Cons

Below are some pros and cons of having freehold ownership and leasehold ownership. Have a look!

Pros Of Freehold Ownership

• Absolute ownership
• No ground rent
• Freedom of usage
• Complete control
• Potential for capital appreciation

Cons Of Freehold Ownership

• Higher upfront cost
• Responsibility for maintenance
• Property tax liabilities

Pros Of Leasehold Ownership

• Lower upfront cost
• Lower maintenance cost
• Lease extension
• Access to amenities and facilities

Cons Of Leasehold Ownership

• Time-limited ownership rights
• Limited control
• Restricted usage
• Ground rent and service charges
• Mortgage complexities and higher interest rates

Frequently Asked Questions of Land Ownership

1. Which kind of property is better – freehold or leasehold?
   Freehold properties are appropriate for residential use, investment, and obtaining bank loans. Leasehold properties, on the other hand, are preferable for low maintenance requirements and economical commercial use.
2. Is investing in freehold real estate safer?
   Given that a freehold property has been registered and is anticipated to appreciate in value, it is regarded as a safer investment.
3. Who actually owns leasehold property?
   The lessor of the lease agreement holds actual ownership of the leasehold property.

Final Verdict

Your unique situation and preferences will determine which type of land ownership – freehold or leasehold – you should choose.

Freehold ownership is a well-liked option for people looking to make long-term investments because it provides total autonomy and perpetual ownership. On the contrary, leasehold ownership is a more feasible choice for urban residents and commercial enterprises since it offers more reasonably priced access to properties with shorter lease durations.

However, before choosing, it’s essential to carefully understand the advantages and disadvantages of each type of land ownership. You can consult with property experts like Elites Properties, where we can help you make an informed decision. Contact us here.

Selling a house is a significant milestone yet a daunting task. Right from preparing your house for selling to finding buyers, negotiating, and closing the deal, is all a complex journey. Further, if you think that once you sign the sales contract you are done with all the responsibilities, you might be mistaken.

Selling a house in a state like New York comes with certain responsibilities. But exactly when and how long are you liable for any issues arising after closing?

Let’s find out, as understanding your liability after selling a house is crucial to avoiding legal disputes and protecting your interests.

When Is A Seller Held Liable After Selling A House?

Being a homeowner entails routine maintenance and repairs. After closing, new homeowners (buyers) often discover defects in the property, but your (seller’s) liability for any issues that existed before is limited.

However, it is your, your representative’s, and your inspector’s responsibility to disclose any known property defects as well as important information that can influence the property’s appeal.

Therefore, if you conceal material facts like the need for repairs or knowingly give false statements or make omissions, it could be considered fraud on your behalf and you could be held partially or fully responsible for the problems like repairs after closing.

According to the law, to make the seller liable for issues after the closing, the buyer must be able to prove that the seller breached the sales contract or any repair warranty, failed to disclose as required by state law, was fraudulent or negligent in disclosing information, or willfully misrepresented the state of the property.

When Is A Seller Not Held Liable After Selling A House?

If it is proved that you disclosed to the buyer all known defects or crucial information and did not do anything to prevent the buyer from finding any defects in the property, you are unlikely to be held accountable for any property issues after the closing.

Besides, rather than the seller, the real estate agent or the inspector can be held responsible for their failure to disclose if the seller was unaware of the defects but they were.

For instance, a real estate agent may be charged with fraud and deception if they conspire with a home inspector to hide damages to protect a deal from falling through. The seller can not be held accountable in this scenario.

That is why buyers need to do thorough property analysis and inspections before closing.

Requirements Under The New York Property Law

Regarding a home seller’s liability after a sale, different states have different laws and regulations.

Early on in the history of property law, New York adhered to the traditional principle known as “caveat emptor,” or “let the buyer beware“. This meant that sellers would not be held liable if they disclosed nothing about their property defects.

Later, New York courts implemented measures to safeguard buyers by establishing exceptions. For instance, a seller who possesses a special relationship of trust with the buyer, like that of trustee-beneficiary, guardian-ward, agent-principal, or attorney-client, could be held responsible for concealed property defects.

Furthermore, the courts declared that sellers can be held accountable to the buyers for any damages if they actively concealed defects. ‘Active concealment’ refers to a situation in which the seller obstructed the buyer’s attempts to inspect the property and knew about any damage but chose not to disclose it.

Property Condition Disclosure Act (PCDA)

The Property Condition Disclosure Act (PCDA) is the disclosure law in New York for property sales. Under this act, the seller is required to make certain disclosures about the property by giving the buyer a disclosure statement before the sales contract is signed.

Until now, the seller had the option to pay a credit of $500 towards the purchase price to the buyer at the closing if unable to deliver the disclosure statement. However, as per the latest amendment in the act, PCDA will no longer allow a seller of residential real estate to give the buyer a $500 credit instead of the disclosure statement, effective as of March 20, 2024.

Is The Seller Held Liable After Selling A House In Case Of As-in Clause?

An ‘as-in’ clause in a sales contract simply indicates that the house is being sold in its existing condition and the buyer accepts it ‘as-is’. This also means that you (the seller) need not need to fix any property defects disclosed or otherwise discovered by the buyer before the closing.

That’s why the buyer is still responsible to conduct an inspection and asses any property defects or find issues to make an informed decision.

If the buyer finds some defects in the property yet buys it anyway, cannot hold the seller liable after closing. However, despite the as-in clause, sellers can be held liable for fraudulent misrepresentation if they have sold the property without disclosing any known defects, or their inspections didn’t reveal the problem.

Statute Of Limitations In New York For Real Estate Transactions

If the buyer holds you responsible for any property repairs or other issues after closing, they can file a lawsuit but within a limited amount of time. This window of time is the ‘statute of limitations’.

Depending on the type of case and claim, the statute of limitations in New York State for real estate transactions typically ranges from one year to six years or even 10 years in some cases.

For example, in case of fraud or breach of contract in the sale of property, the statute of limitations is six years from the date of the fraud or from the date the contract was broken respectively.

The Final Say

By being transparent, making precise agreements, and getting expert advice, you can protect yourself from problems that may arise after the sale. You can contact our experts at Elite Properties today if you’re planning to have a smooth home-selling journey.

If selling an inherited property is what’s on your mind, you might be surrounded by a bunch of questions – How to sell an inherited property? What are the legal requirements? What are the tax implications and so much more?

When you inherit a property, you have multiple options for how to proceed. You may decide to live in it, rent it out, or sell it. Emotionally, inheriting a property can be demanding, but it may even put a financial strain on you. If you feel that the obligation of inheriting property is huge for you, the best way out is to sell it.

However, selling an inherited property can be complex and take longer, especially if it goes through a probate process. Yet, once you know which hurdles you need to cross, the process of sale or transfer can become relatively easier to navigate.

So, let us help you with what you must be aware of before you even jump into the selling process.

When Can You Sell An Inherited Property?

You can only sell an inherited property if you already have its ownership. Considering this, the following are the ways of owning a property through inheritance.

1. Probate

In New York, almost every inherited property has to go through the probate process. Probate involves the court which determines the legal owner of the inherited property.

During the probate, you must provide the owner’s death certificate and ownership documentation. Through this process, the court also ensures that the outstanding debts of the deceased are settled before transferring the property to the inheritor or inheritors.

Probate proceedings can be costly and time-consuming, it can even take up to 12 months. Once you inherit the property under probate, you can sell it.

2. Joint Ownership

When you and another person own property jointly and that ownership includes the “right of survivorship,” the surviving owner will take over ownership of the property upon the death of the other owner. Although it will require some documentation to demonstrate that title to the property is held exclusively by the surviving owner, no probate will be required to transfer the property.

3. Transfer-on-Death Deed

A transfer-on-death deed helps the executor manage the property owner’s assets after death by automatically transferring property to a designated beneficiary upon the owner’s death without the need for probate.

If you inherit the property through such a deed, you get the right to sell it.

Please note that New York doesn’t allow real estate to get transferred through this method. However, if one doesn’t live in a state that allows TOD deeds, but owns property in such a state, they might still be able to use a TOD deed — but it is advisable to check with an estate lawyer first.

4. Living Trust

A living trust is a legal arrangement that is drawn up by an individual while they are still alive. It names a trustee and lays out clear guidelines for how assets will be distributed upon the grantor’s death.

If you become the inheritor through this method you can benefit from the sale of the inherited property.

What To Consider Before Selling An Inherited Property?

An inherited property is not like a property that you directly get ownership of. That is why the process of selling one can be quite complicated. There are certain factors that you must look at before you decide to sell the inherited property, such as the following:

1. Value Of The Property

Before you look into anything else, first research the fair market value of the inherited property. Compare it with other properties in its vicinity to accomplish this task.

Alternatively, you can use online value estimation tools. Despite the estimated value that you get, remember that several factors can directly affect the property’s value such as the condition of the property.

2. Outstanding Mortgage

Reach out to the mortgage company if there is an outstanding mortgage on the inherited property to determine the required payment amount. This is how you can get to know how much you might earn after selling the property.

3. Debts If Any

Settle any outstanding debts, such as unpaid bills or taxes, for which the deceased person was responsible before proceeding. This way you get an idea of whether the selling of the inherited property would only go to paying the debts.

4. Agreement Of All Inheritors

It might be possible that you are not the only inheritor, but multiple persons/family members are inheriting the property.

In such a case, you must see that all the inheritors agree to sell the property. This will ensure that you have a smooth selling process without any potential conflict.

Tax Obligations

There is no inheritance tax in the state of New York. However, if the value of your property exceeds $6.58 million, you will have to pay an estate tax ranging from 3.06% to 16%.

Moreover, when you sell the inherited property, you must fulfill tax obligations including payment of transfer tax, property tax, and capital gains tax.

How To Sell An Inherited Property?

Selling an inherited property is really no different than selling any other property. You can sell it on the open market for the most profit either through a real estate agent or sell it yourself.

Also, you can sell it directly to a cash buyer without making any repairs or changes. You can move quickly and get cash for the property without needing to make large upfront investments if you sell it as-is.

Elite Properties is a real estate company that will buy your property “as-is,” with no costs or commissions! You receive the greatest cash offer and we also pay for all closing and legal fees. No open houses or showings, and a speedy three-day closing!

The Final Say

Selling an inherited property can be overwhelming with all the legal processes that you need to go through. So, if you want to sell your inherited property with lightning speed, we are just a click ahead, contact us!