All Forum Posts by: Ahmed Saad

Just confirming this is happening tomorrow. Looking forward to meeting people.

Good morning Michelle,

I think being able to obtain funding through a program affiliated with veterans will be a very beneficial. Make sure you take time to do plenty of research before you move forward. I am not particularly well-versed in the financing side of the business but look for a broker that is willing to take the time to walk you through your options and not pressure you. You want to work with someone with whom you feel comfortable BUT someone who gets stuff done! I missed out on a great rate once because the loan officer was too slow and I missed a deadline.

Next, about your deals:

1. Do not invest in a condo if you are not going to live in it. This is an easy one because you will lose money.

2. In the NYC Metro area it will be 99.9% impossible to buy something with 3% down. This is for 2 reasons. First, the property will not cashflow and you will be paying significant expenses out of pocket. Second, it will be a rare seller indeed who will choose your offer with 3% or 5% down instead of someone else who will put in 20-25% as they will have more skin in the game AND they appear to be more financially secure in that they can afford to pay that amount.

Now that I'm done being a negative Nancy, I think the multifamily option is the right track. The first option is to find a 4 family that you can afford AND that will cashflow without you living in it. Good luck! Any time you want to talk more, I'd be glad to help!

-Ahmed

I recommend you get a second opinion on the value of your property. The appreciation in 12 years for NYC real estate seems extra conservative unless there are mitigating factors. Also, I think you can negotiate the commission. Good luck!

Let me know when and where. I'd like to meet up as well.

If you can swing the down payment for a 4 family, you qualify for a residential mortgage for a great rate and use the rental income to pay off your loan, while enjoying the benefits of depreciation and gaining the experience of being a landlord (cue the rainbows and glitter). Good luck fellow Brooklyner.

Hi @Justin S.,

I've been off BP for a few months and wanted to check back in to see how your situation is working out. Let me know.

Hi Robyn, 

I have 2 properties in Park Slope and have managed them for over 10 years now. Here are some thoughts / questions / recommendations.

1. What are the conditions of the units of your current 3 family? I'm asking this for 2 reasons. First, if you're GROSSING $6300 on 3 units in Cobble Hill I think you're rent is very low. If they are 1 bedroom apartments and they are in decent condition you can probably get about $2700 per apartment fairly easily. If they are 2 bedroom then maybe $3000-$3200. Second, if there's room to improve the conditions of the units, then there's room to improve the rents, thus room to improve the amount of money you withdraw from the property.

2. Let's pretend you're looking to take out $1m (which is very reasonable considering the property). You can use that as a DP on a property in Brooklyn and grab a really solid building in an A area. The cashflow would be OK from a % standpoint but from a $ perspective it'd be good. Of course the appreciation will be stupendous. 

If you're looking to really grow a portfolio, you can use that $1m as an investment fund and start buying fix and hold units in an area like Philly. You can BRRR(R) if you want but then you need to find management. It's not really worth your time or effort to manage any of those for the rent you would get there.

3. Since you are comfortable with the small multi family, I'd say why reinvent the wheel! 3-4 family properties are the best. They are easy to manage. No RS/RC issues! Larger properties in NY have issues with HPD all the time. Constant issues with sprinkler inspections an boiler/heating issues. They qualify for residential loans but with the added benefits of the rental income to help pay the loan. 

I hope this was helpful. Always happy to see another Brooklynite here!

You have a lot of variables to work with. First, if this is a legal 2 family there should be 2 electric meters and gas meters. Split everything up now that heating season is coming to an end. Depending on the condition of the heating system and your $ situation, you can invest in the split unit HVAC systems. You can also install an electric water heater & tank for the first tenant.That will put the cost of heating & hot water back on the tenant via their electric bill. Perhaps most importantly, that will keep you from having to deal with an expensive licensed plumber & national grid. Check into the situation with the energy supplier.

If this is NOT a legal 2 family, I would advise you stick with your current situation and to have the utility bills sent in your name to a your preferred address and you make sure they're paid. Have the tenants reimburse you and the bill by the number of bedrooms per unit (e.g a 1 bed apt pays 34% and the 2 bed apt pays 66%). If they do not reimburse you monthly then you can choose to not renew their lease and take the utility costs from their security.

Hi @Justine Lee,

Congrats on the purchase! Where in Brooklyn did you buy? Here's my 2 cents. The only way I would consider what you are proposing is if the equity from your coop is enough to place enough of  downpayment (think 50% of purchase price) on a small multifamily (think 3-4 family) so that the income from the new property is enough to cover all expenses of the new property as well as the loan (or a significant percentage thereof) on your personal residence.

It's a gamble that can break you or be the beginnings of your real estate portfolio. Just also know that we are pretty much at the top of the market and everything is very expensive. Good luck!

-Ahmed

Hi all,

I'm in Brooklyn and look forward to discussing all things property and beyond at the meetup as well as online.