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Cyle Sicurella
  • Investor
  • Long Island, NY
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Financing Advice for Rentals

Cyle Sicurella
  • Investor
  • Long Island, NY
Posted Nov 1 2022, 11:59

Hello All,

1st post here! My wife and I are young real estate investors from Long Island NY. Aside from our Long Beach Co-op, it’s nearly impossible to scale here because we’ve been priced out of this market and will probably be forced to move. 

I want to see what different people opinions are on my situation. Here’s the all the variables. My wife and I plan to start our family toward the end of next year. I personally feel that if we choose to stay on Long Island, we will be house poor and not being to provide for our children or do future vacations. The only way I see us staying there is acquiring income producing properties (in addition to our salaried jobs) before buying our forever home to offset living expenses. 

We currently own a beach Coop which we are renting out while living at home for dirt cheap. I’d like to utilize this time by acquiring rental property in Wilmington North Carolina ( I currently have a strong trustworthy relationship with a local agent, and my father in law is a general contractor there ). My question is, as all of you know, making the numbers work on a long term rental with todays rates are very difficult. The only way it seems is to truly work is tailoring a furnished rental to nurses.  But, my other option is a 15 year 150k loan at 4% from the father in law if we put up 75k ourselves to purchase a home cash. I know this an excellent deal, but my concern is locking up much more money than I originally anticipated which will severely push back the timeline to purchase my own home and it doesn’t give me the ability to scale/capitalize on future opportunities when they come up. 

Should I utilize this option for a cash deal long term hold, or bite the bullet on tight margins utilizing a bank loan until I can refi lower down the road? 

Sorry for the long winded explanation, but it seems like every decision we make at this point is overwhelming because there’s so many variables. Thank you all for the info and support and love learning in this community. 


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