All Forum Posts by: Mohammed Rahman

Hey @Candith Jackson - I recommend speaking directly with the banking officer at the bank you're wanting to purchase the note from. 

Besides the traditional mortgage being reported to credit bureaus, you'll avoid any resentment/conflicts between your mother and both you & your husband. I've witnessed situations where private family mortgages have caused a lot of tension with my clients, and therefore I strongly advise against it as a permanent solution. 

If you're asking from the perspective of 'why wait to build equity and not just do it right away?': 

Traditional banks will want to see around 20%+ equity in the home before they consider 'refinancing' your file. 

It's my $0.02, I've seen this situation play out multiple times, good luck and feel free to DM me if you want to chat further thanks. 

Hey @Lauren Mattina - I'm a realtor & investor based out in NYC. 

On paper this makes a lot of sense, but I'd like to point out that your relationship dynamic with your mother will change after this (regardless of how close you are).

A private mortgage is a great way to get a rate under market, I recommend using your attorney & title company to ensure everything is recorded accurately. You may want to consider getting a traditional mortgage & 'refinance' out of your mother's mortgage after you've built enough equity into home. 

P.S. Make sure it's an actual private mortgage and not a land contract. 

Hey @Joseph Z. - lots of different advice in this forum. My name is Mohammed, I'm a realtor and investor based in NYC. 

If you're not risk-tolerant, I don't recommend investing out of state. Sure, real estate investing is 'passive' but it still involves using your time and mental headspace to solve issues that pop up with any rented out property. My advice would be to look into properties that are within a few hours drive of NYC if you're wanting most bang for your buck (Albany has good returns). 

You have a solid downpayment amount and could use that for a multifamily in NYC itself to househack and appreciate in value. There are multiple ways you can get into real estate, and the answer isn't going to be on BiggerPockets - you have to do your research and decide which route is the best for you. 

Drop me a DM if you're serious, happy to chat and point you in the right direction, thanks. 

Hey @Christian D. - no experience with that management company, and I agree $200/month flat fee does seem odd. It could be that they worked out a unique plan for you since it's a small duplex (they have good reviews online). 

Most management companies don't make money unless it's a larger property. You may want to check out Wolf's Den management. I haven't used them directly since I self manage, but have had other clients mention them to me. 

Good decision @Tommy Cheng - if you're getting a good return, nice cashflow, and have decent long-term tenants that aren't causing headaches... you didn't overpay :) 

It seems like a solid investment and I wouldn't recommend selling it now unless you absolutely need the liquidity. Wait a few years for the interest rates to come back down, and it'll be another seller's market. 

Feel free to reach out if more questions come up and good luck, thanks. 

Hey @Tommy Cheng - I'm an investor and realtor based in Queens. Which part of 'deep Queens' is your property? Asking since I've lived & worked on the edge of Queens & Nassau County for a while (grew up in Bayside). 

You have a decent amount of equity built up, but I would only recommend selling if you want to take your cash out and purchase larger/multiple properties.

$1000/month cashflow in Queens is very good, and it's almost unheard of these days since property prices and rates have been increasing. I'm not too familiar with CT or PA, but I know Albany can give you more bang for your buck since property prices aren't as crazy as they are here. I'd focus back on your WHY. If you're unhappy with having just 1 duplex and are looking to expand quickly, then best course of action would be to sell and invest in lower cost areas. 

Although rates have been going up, some neighborhoods in NYC (particularly Queens) have been insulated from the price drops because they're in desirable areas of the city (good commute, taxes, school district, etc.) 

If you want to chat more, just DM me and we can take it from there thanks! 

Hey @Michael Cavitolo - congrats on getting closer to your first deal! 

I'm noticing a varying amount of recommendations on this post, so I recommend the same thing for you that I tell everyone else: it depends on your investment thesis. 

- Do the numbers still work for you at 3.5% vs. 5%?

- Are you ok with paying PMI, but saving the upfront cash (possibly using it for some light renovations)?

- Etc. 

These questions aren't going to be answered via the forums, since you have to decide what you're comfortable with. A good deal to one, is a bad deal to another. 

Best of luck and seems like you're already on the right path! 

P.S. I recommend non-FHA if you have the cash... this way you can purchase another property with an FHA in a year or so :)

Hey @Mohammed Milord - lenders local to the area you're investing in will be a much better experience than others (even large branded banks). 

Local lenders have a closer ear to their market and can sometimes approach a deal with a friendlier perspective since they have more knowledge of the area. 

Hey @Anthony Kono - I'm Mo, a realtor & investor. 

I also lived in NYC when I bought my first couple of properties and can confidently say - it depends on what your investment thesis is. 

What are you trying to get out of investing? Is it monthly cash flow, then most likely NYC markets aren't the best fit for you. Are you trying to house-hack and then sell for a profit after a few years, then NYC might work for you. 

There are a lot of open questions to answer if you want to make the right decisions as you start investing. I'm not saying it's absolutely necessary, but start with your internal questions first before deciding on external thing such as market locations, property income, etc. 

Feel free to drop me a DM, happy to help out a fellow first time investor on a call.