All Forum Posts by: Mohammed Rahman

In your situation, a full-blown hard money lender probably won’t want to get involved for just $30–35K — most have minimums closer to $75–100K and prefer full purchase/refi loans. 

What you’re really looking for is either a private lender (someone local or in your network who’d feel secure knowing the property has plenty of equity) or a small personal/business line of credit that doesn’t care as much about credit score but is secured by the property.

Some options you could look at:

– Try local private lenders or investor groups in Brooklyn — many people are open to short-term, high-interest loans if they’re backed by a lien on a $1.6M property.

– Consider a tax lien lender — some specialize in paying off overdue property taxes in exchange for a note against the property.

– Ask your contractor or suppliers if they’ll float some of the work/materials on partial payment until completion.

– You could also explore a small HELOC/second lien through a credit union or community bank — some may work with lower credit if the equity is strong.

Realistically, I think your fastest route is a private investor who gets a short-term lien. You’re offering a strong return and there’s plenty of equity to make them feel safe.

Feels like it’s more about being pickier than pulling back completely. Money’s more expensive and holding costs add up, so people don’t want to gamble on thin margins anymore. 

The buyers who are still active are running the numbers harder, focusing on properties where they can negotiate or add real value. 

A lot of investors are sitting on the sidelines waiting for more price drops, but the ones staying in the game are just laser-focused on deals that make sense today, not hoping the market bails them out later.

If you’re serious about buying in Kips Bay or the East Village and want a good deal, you’re going to need to work a few angles at once. 

In NYC, the best values usually come from situations where the seller’s motivation is high and the pool of competing buyers is smaller. That means you shouldn’t rely only on what’s on StreetEasy.

You’ll want a good buyers’ agent who knows those specific neighborhoods and is connected with other agents who bring “whisper listings” (off-market or not-yet-listed properties). 

At the same time, you can work your own network—walk buildings you like, introduce yourself to supers/doormen, and let them know you’re looking. Some owners will sell without listing if they get the right price and an easy transaction.

Pulling public records for long-term owners can work too, especially in co-ops and condos where the same unit has been owned for decades—often those sellers have lots of equity and less attachment to squeezing top dollar. You can filter ACRIS records by building and ownership date, then reach out through letters or skip tracing.

Also, watch listings that sit for 60+ days. In Manhattan’s current market, that often means there’s room to negotiate—especially if you’re a clean buyer with financing lined up and a flexible close date.

You’re essentially looking for a cash-out refi structured like delayed financing, but without the seasoning requirements most conventional lenders stick to. 

Since it's a 4-unit, vacant, and bought at auction, traditional banks will likely want it rented first before touching it. Your best shot is with DSCR lenders that can base the loan on market rents even if it's vacant, or small local banks and private lenders willing to work off your as-is appraised value instead of your purchase price.

Asset-based lenders could also work since you’ve got a lot of equity, but you’ll have to shop carefully to keep the rate under 11% and avoid prepayment penalties. Given you own it outright and there’s solid equity, you’ve got leverage—you just need to show them your scope of work and your plan to get tenants in quickly so they see a clean exit.

Marc, septic tanks aren’t automatically a dealbreaker, but they do come with extra considerations — especially for STRs where guest behavior is unpredictable.

The main risks are improper use (guests flushing things they shouldn’t, overloading the system with water from laundry/dishwashers/showers), costly repairs if the system fails, and the need for regular pumping/maintenance. In Florida, you’ll also want to be aware of the water table and flood risk — heavy rains can impact drainage.

If you go this route, get a full septic inspection before closing (not just a general home inspection), budget for regular service, and include clear guest instructions in your listing. Many Florida STR owners run septic without issues, but it's a little more hands-on than city sewer and repairs can be expensive if you neglect it.

If the same property had sewer, I’d take sewer every time. But septic wouldn’t make me walk away if the deal was otherwise strong and cashflows well.

Sounds like you’re framing it really well — rental arbitrage can be a fast, low-capital entry into STRs, but it comes with some serious risks that ownership avoids.

If the market is strong, regulations are stable, and you can lock in favorable, longer-term leases, arbitrage can absolutely make sense as a cashflow play. But the moment rules change, rents rise, or the landlord decides not to renew, you’re exposed. That’s why a lot of people treat it as a short-term cash generator rather than a long-term wealth strategy.

Owning gives you control, equity growth, and appreciation — but it’s slower to start and requires more capital. Arbitrage can work today, but only if you’re clear that you’re building a business dependent on someone else’s property and rules, not an appreciating asset.

Putting your rentals into an LLC vs just keeping them in your personal name with umbrella coverage comes down to weighing liability protection, costs, financing, and taxes.

With an LLC, you can create a legal separation between you and the property, so if a tenant or guest sues, in theory they're going after the LLC's assets, not your personal ones.

It can also make it cleaner if you're bringing in partners or selling later. That said, in New York, LLC setup and annual fees add to your costs, you'll likely need to transfer the deed (which could trigger transfer taxes or mortgage issues), and financing under an LLC is usually more expensive with higher down payments.

Umbrella insurance is cheaper and easy to add, but it’s still tied to you personally. If the claim exceeds your coverage limits, your personal assets could still be at risk. Also, insurance companies can deny claims for certain situations, so it’s not bulletproof.

Many people in your shoes run the rentals in an LLC for liability purposes but keep their primary home out of it, and they make sure their LLC has its own bank account, lease agreements, and insurance. The trade-off is more paperwork and cost versus simplicity with umbrella coverage.

Sounds like a solid re-entry plan, Waiel. You’ve got the experience under your belt already, so picking it back up should be smoother this time around. 

Welcome back to the game—and the community. Looking forward to seeing what you end up building and maybe hearing about your first new deal soon.

If you’re just starting and want to invest while moving from Staten Island to NJ, you’ll want to first decide if you’re aiming for a place you’ll live in (house hack) or a pure rental.

If you're open to living in the property, a multi-family in NJ is one of the fastest ways to get started. You could use an FHA loan (as low as 3.5% down), live in one unit, rent the others, and have tenants cover most or all of your mortgage.

NJ has a lot of towns with solid rental demand right across from Staten Island — places like Bayonne, Jersey City Heights, Union City, or even Elizabeth.

If you want a pure rental, you’ll need a bigger down payment (usually 20–25%) and strong financing lined up. In that case, start by learning the NJ submarkets — property taxes vary wildly from town to town, and that can make or break your cash flow.

Either way, the first steps are:

Get pre-approved so you know your budget.

Pick a strategy — house hack, long-term rental, or BRRRR (buy, rehab, rent, refinance, repeat).

Start running numbers on actual listings so you know what a good deal looks like.

Since you’re local, I’d suggest touring a few multi-families in NJ just to get a feel for what’s out there. It’s way easier to pull the trigger when you’ve seen enough properties to recognize a winner

If you’re starting from zero experience, you’ll want to break this into three main steps: planning, assembling the right team, and securing financing.

First, start with research and feasibility. Look at zoning rules in Fayetteville to make sure your lot allows multifamily. 

You can check the city’s zoning map online or call the planning department. While you’re doing that, run some basic numbers — what rents in the area look like, your projected construction costs, and what your mortgage and operating expenses might be — to see if the deal makes sense.

Second, build your team early. At minimum you’ll need an architect (to design plans that meet code), a general contractor (to build), and potentially a civil engineer (if there’s grading, utilities, or drainage work). 

If you’ve never built before, finding a GC with multifamily experience is huge — they can help navigate permitting and inspections.

Third, line up financing. This could be a construction loan from a local bank or credit union, possibly combined with permanent financing once the building is leased up. 

Lenders will want detailed plans, permits, and a budget before approval, so having your design and cost estimates ready is key.

In short — confirm zoning and feasibility, get an architect and experienced GC on board, and work with a lender familiar with new construction in Fayetteville. From there, you’ll go through design, permitting, construction, lease-up, and then either refinance or hold.