All Forum Posts by: Mohammed Rahman

At 25 you’re way ahead of the game just by already house hacking and having a cash-flowing duplex under your belt. That’s a solid foundation.

Here’s the thing—there’s no single “right” answer. If you stick to only buying locally, you’re at the mercy of your market. If deals are rare, you could sit on the sidelines for years and miss out on building momentum. 

On the flip side, going out of state opens more opportunity but adds risk—you’ll need reliable property management, strong systems, and confidence in analyzing markets you don’t live in.

A middle ground might be to widen your radius a bit beyond that one-hour mark and see if nearby metros offer better numbers. Madison is competitive, but cities like Milwaukee or smaller towns in Wisconsin could still cash flow. 

If you don’t find anything within driving distance, then looking out of state could be worth it—plenty of investors start that way, but they usually succeed because they treat it like building a team (agent, PM, lender, contractors) rather than just buying blind.

Don’t feel “behind.” You’re 25 with experience and positive cash flow. Be patient for the right deal, but don’t be afraid to expand your search if you can build the right support system.

Momentum matters, but so does sustainability—you don’t want your second property to turn into a headache that slows you down.

That’s a tough spot, but you’re thinking about it the right way. Here’s how lenders usually look at this:

Most true commercial loans don’t allow owner occupancy, because they’re underwritten on the property as a business, not as a residence. 

And if you take title in an LLC now, you're right — refinancing later into FHA in your personal names would trigger transfer taxes in NYC.

Your best shot is finding a lender who will do a DSCR-style loan in your personal names (your option #1). Some smaller local banks, credit unions, and even certain nationwide DSCR lenders will put it in personal names rather than forcing you into an LLC.

It's not FHA, but it keeps the door open for you to refi later into FHA without incurring that transfer tax.

Option #3 — a short-term bridge loan or portfolio lender — is also worth exploring. There are private lenders in NYC who will do 6–12 month notes in your personal names. 

It won't be cheap, but it could buy you the year you need until your fiancée has verifiable income again, then you can roll into FHA.

I wouldn’t waste time chasing #2 (commercial + owner occupancy). Banks just aren’t structured for that — it creates compliance issues because it crosses the line between consumer and commercial lending.

If you want to move forward, I’d start with:

Local portfolio lenders and community banks in NYC — they have more flexibility putting the loan in personal names.

DSCR lenders that don't require LLCs (there are a handful).

Private/bridge lenders if you’re open to higher rates short-term.

Got it — you’ve basically got two options: accelerate payoff now vs. keep cash liquid and refinance later. Here’s the way to think about it.

Paying the extra $1,100/month guarantees you a 4% “return” (since you’re avoiding paying that interest), plus you’d knock out the loan by maturity without a refi. That’s safe, predictable, and takes interest-rate risk off the table. 

On the other hand, 4% is relatively cheap debt. If you can reasonably invest that extra $1,100/month into something earning higher than 4–6% after-tax (stocks, another property, your business), you’d come out ahead financially. The trade-off is you’d carry the refi risk in 2031 (interest rates could be much higher, and you’d pay closing costs again).

So it comes down to your goals. If peace of mind, debt-free ownership, and guaranteed savings sound better — throw the extra at the loan. If you value flexibility, liquidity, and are confident you can get better returns elsewhere — keep paying minimums and invest the spread. 

Splitting the difference is a perfectly valid middle ground too: maybe add a few hundred extra each month, build equity faster, but still keep cash free for opportunities.

That’s a solid first post, Jackson, and the fact that you’re even asking this at 16 already puts you way ahead of the game. If I could go back to that age, I’d tell myself a few things:

First, don’t underestimate time. Compounding is your best friend, whether that’s compounding money in investments or compounding knowledge and relationships. Start stacking skills early—sales, communication, finance, negotiation—because those never go out of style and transfer into every business you’ll ever touch.

Second, get into the habit of saving and investing right away. Even if it’s just a couple hundred bucks from a part-time job, get used to living below your means. At 16, you have zero expenses and tons of time, so build the discipline now.

Third, get around the right people. You can shortcut years by finding mentors, working under investors, or even offering to help for free just to be in the room. Don’t chase money in your first job, chase the skills and network.

Lastly, don’t let fear of losing passion stress you out. Passion tends to come from competence—you’ll stay excited about real estate or finance if you’re good at it and seeing results. Just keep trying things, stay consistent, and keep moving forward.

If I were you today, I’d start some kind of hustle that builds cash flow (even small), consume everything you can on real estate and finance, and find people in your area already doing it. By the time you’re 21, you’ll be lightyears ahead.

Congrats! That’s a huge milestone and it sounds like you’ve handled the ups and downs really well. The attic situation is one of those classic “real estate reality checks,” but honestly, better to learn now and treat it as a future value-add than be blindsided later.

Since you’re so close to closing, a few things to keep in mind: make sure utilities are ready to be switched into your name the day of closing, confirm you’ve got landlord insurance (not just homeowners insurance), and have a solid idea of the immediate expenses (fridge, stove, maybe A/C if you pull the trigger). If you’re planning to rent right away, also lock down your lease paperwork and tenant screening process so you’re not scrambling.

The attic, you’re right—step one is the local building department. Every city has different rules for making a space legally habitable (ceiling height, egress windows, HVAC, permits, etc.), and knowing those upfront will keep you from wasting money on a half-done project that can’t be counted as a bedroom.

Don’t forget a quick walk-through before closing to be sure the property is in the same condition as agreed. Sellers sometimes leave junk behind or skip repairs. And if you haven’t already, build a small reserve fund for the unexpected—because something always pops up.

You’re in a great spot though—house ready to rent, appraisal smooth, your head in the game. This first deal will probably feel like the biggest jump of your life, but it’s just the beginning of your portfolio.

Want me to give you a little “closing day checklist” so you can literally just run through it step by step?

That’s a huge win, honestly. An assumable mortgage at 2.375% is gold in today’s rate environment, and the fact you stuck it out for 8 months to make it work shows the persistence it takes to get in the game. Even if it’s not a “grand slam,” you’re basically walking into cash flow with built-in equity and a financing setup people would kill for right now.

A lot of folks talk about house hacking but can’t make the numbers work with current rates. You actually found a way to do it—and on your very first deal. That’s the kind of experience you can build on over time. Congrats on making the leap after 8 years of grinding—it’s not just a first step, it’s a solid foundation.

That’s huge — congrats on sticking it out and making it happen. Most people would’ve walked away after a few months of back-and-forth, but you pushed through and landed an assumable at 2.375%, which is basically impossible to find now. 

Even if the cash flow isn’t a monster, you locked in a long-term win and got in the game, which is the hardest part. Once those units are rented, you’re basically living close to free and building equity on someone else’s dime. Solid first step after all those years grinding — you should be proud of this one.

Rule of thumb: refinancing usually makes sense when you can drop your rate by about 1% or more, and you plan to stay in the home long enough to cover the closing costs with the monthly savings.

For you, at 6.99% with 28 years left, if rates fall into the mid-5s (say 5.75% or lower), it’s worth running numbers. That kind of drop would shave a noticeable chunk off your monthly payment and interest over the life of the loan. If rates get into the 4s, it’s almost a no-brainer.

The other big factor is time horizon. If you plan to move or sell in just a few years, the savings may not offset the closing costs. But if you’ll be there 7+ years, even a 0.75% drop could be worth it.

Since this is in Queens, your first step is to confirm whether the unit is rent-stabilized or not. Given it’s a 4-unit building and she’s been there 20 years, there’s a decent chance it is, which means you can only raise rent by the allowable percentage set by the NYC Rent Guidelines Board each year (usually just a few percent). 

If it’s not stabilized, then technically you can raise to market, but you’ll want to be careful given her long tenancy, age, and the fact she’s a “good tenant” who adds value by caring for the property.

Market for a 1BR with 2 baths in Queens could easily be $1,800–$2,200+ depending on the neighborhood, so she’s well below market. If you want to keep her, a modest step-up increase each year ($100–$150 at a time) is a fair way to bridge the gap without shocking her. 

You could also frame it around rising taxes/insurance/maintenance so it doesn’t feel arbitrary.

If you eventually want to reposition the unit as a 2BR, you’ll likely need turnover. In that case, it may be smarter to keep rent increases gradual, maintain a good relationship, and let time (and her retirement plans) create a natural exit rather than pushing too hard now.

Section 8 and CityFHEPS both guarantee the rent, but they come with a few key differences. Section 8 is a federal program, so it’s more established, more predictable, and tends to come with longer-term tenants. 

The tradeoff is the annual inspections and sometimes slower approval process. CityFHEPS is local to NYC and often moves quicker, plus you’re right that after the initial inspection, there usually aren’t recurring ones. 

That said, many landlords report CityFHEPS tenants can be higher turnover compared to Section 8, since the program is designed for people coming out of shelters.

If you want stability and a more standardized process, Section 8 usually wins. If you’d rather avoid yearly inspections and don’t mind the possibility of more turnover, CityFHEPS could be easier.