All Forum Posts by: Mohammed Rahman

Hi!

Welcome to BiggerPockets, Wishing all the best for your future!

Hey, good to hear you’re fired up and ready to make moves.

Honestly, both options you’re thinking about — rehabbing your current home or buying a second property to BRRR — could work. It really comes down to your financial situation right now, your timeline, and how much risk you want to take on.

If you rehab your current place and either make it a 2-family or add square footage, you're basically forcing appreciation and adding cash flow potential without having to buy a new property. It's usually safer because you're already locked into your mortgage and your carrying costs. Plus, you might be able to finance the rehab with a HELOC or renovation loan. That could seriously boost your home value and set you up to either rent out part of it or pull equity later.

On the flip side, if you buy a second property and go full BRRRR (Buy, Rehab, Rent, Refinance, Repeat), you're definitely chasing bigger gains. But it's a heavier lift upfront — you need cash for the down payment, closing costs, rehab budget, and you gotta handle another set of holding costs while you fix it up. If you do it right though, you could pull most or even all of your money back out after the refinance, which would be crazy good for scaling.

If you're tight on cash or want to build your base first, I'd probably lean toward fixing up your current home. If you're sitting on some liquidity and ready to be aggressive, then a BRRRR could be the better long-term wealth play.

What’s your budget looking like? And how handy are you (or do you have contractors you trust)? That’ll help steer this decision.

Totally fair questions—and you're actually thinking about it in the right way already.

If you’re considering buying this co-op to live in, here’s what to weigh:

Since you toured it already and liked it enough to consider renting, that’s a good sign. The fact that it’s fully furnished and close to your job adds value too. If you’ll be living there for a year or two, and you’re buying it outright (no mortgage), your monthly cost would mostly just be that maintenance fee. So yeah, under $1,000 a month to live 15 minutes from work in a furnished place is way better than paying $2,200 in rent. That’s a win financially.

Where you need to be cautious is with your exit strategy. Co-ops have strict rules around renting out units—some don’t allow it at all, or they have rules like you must live there 1–2 years first, or they limit the length of rentals. You’ll want to check the co-op board’s sublet policy in writing before buying. That could be the difference between being able to rent it out later or being stuck with a place you can’t use the way you want.

Also, co-ops come with board approval and financial requirements—so even though you’re paying cash, they’ll still want to see your financials, and you’ll need to get approved to buy. If the board is difficult or if subletting is a pain, it could make resale harder later.

So if you confirm the co-op allows subletting after your first year or so, and the maintenance fees stay reasonable, this could be a smart short-term move that saves you money. Just make sure you're not boxed in later.

That’s a heavy but really important question—and honestly, a lot of people in real estate are starting to think about this too.

With AI and automation ramping up, there’s a real possibility that large chunks of the workforce—especially in admin, retail, and transportation—could be pushed out or see their wages shrink. That’s going to hit housing hard, especially in places like California where affordability is already a crisis. If incomes can’t keep pace with rising housing costs, demand for traditional rentals might shift toward more affordable, alternative, or even informal housing options. You might see more co-living spaces, shared housing, ADUs, and yes—more encampments or informal structures in urban areas. We’re already seeing signs of that.

As investors, it’s a good time to start thinking beyond just luxury flips or high-end rentals. There’s going to be growing demand for affordable, workforce, and transitional housing. Some are even pivoting to build-to-rent models with lower price points or investing in states that are more housing-friendly and less regulated. Others are looking at Section 8 and other government-backed housing options where demand is strong and rent is more stable.

Tenant profiles might also shift. You could see more gig workers, multi-generational households, or people looking for flexible leases. So screening, leasing, and property management might all need to adapt.

Long story short—if income inequality keeps growing, the housing market won’t collapse, but it will change. The question is whether we as investors are ready to meet the new needs, or if we’ll get left behind chasing yesterday’s playbook.

Owning two side-by-side properties on a corner lot in Brooklyn with M1-1 zoning definitely opens up some possibilities, but there are zoning limits you need to be aware of before adding floors. M1-1 is a light manufacturing zone, which means it’s primarily meant for industrial or commercial uses like warehouses, auto shops, or offices. Residential use is generally not allowed unless it's legally grandfathered in or you're applying for a special permit. Your first step should be hiring an architect who knows NYC zoning well—they can do a zoning analysis to see exactly what’s allowed on your lots, especially when it comes to height restrictions, floor area ratio (FAR), and whether your current use impacts what you can build. If your current buildings are being used residentially, you might have some non-conforming use rights that could work in your favor. Once you have that analysis, the architect or a zoning consultant can guide you through filing permits with the Department of Buildings (DOB) and making sure everything aligns with city planning rules. It sounds like a strong move, but you’ll need the right professionals to help you navigate the process and make sure the investment makes sense.

Hey Rimane, welcome to the world of real estate—it’s awesome that you’re getting into it so young!

So here's the deal: yes, anyone can use house hacking if they qualify for the right loan and find the right property. With an FHA loan, you can buy a 2-4 unit property as long as you live in one of the units. That's the key. It's designed for primary residences, but house hacking is the cheat code—live in one unit, rent out the others, and your tenants help pay your mortgage.

Now, a lot of counselors or agencies that help with grants focus more on what's safe and affordable on paper, not necessarily what will help you build wealth long-term. So they might steer you toward a condo because it's cheaper upfront. But if you explain that you're interested in using an FHA loan to buy a duplex, triplex, or fourplex and house hack, that's totally legit—and it might actually make the loan easier to pay off with the rental income.

When you talk to your counselor, you can say something like:
I've been learning about FHA loans and house hacking.

I'd like to explore using an FHA loan to buy a small multi-family property so I can live in one unit and rent the others to help cover my mortgage. Is that something we can look into?

If they don’t seem knowledgeable or supportive, don’t be afraid to talk to a lender directly—especially one who’s worked with first-time investors or house hackers. You’re thinking smart, Rimane. Keep going. This move could set you up for a solid financial future.

Hey Jeffry, congrats on the house—big move!

You’re in a solid spot right now, especially with the plan to house hack and eventually cash flow off both units. That’s already putting your property to work. As for the out-of-state investment, you’re asking all the right questions.

Flying out to visit markets is a great idea. Pictures, data, and BiggerPockets threads can only tell you so much—you need to feel the area. Walk the neighborhoods, talk to locals, check out comps, and drive by a few rentals. Goldsboro, Brownsville, and Cincinnati all have potential, but what matters most is what fits your style. Some markets are more landlord-friendly. Others have better appreciation. Some are riskier but offer higher returns. So boots-on-the-ground due diligence? Worth it.

That call with the property manager could be a game changer. Ask them how their investor clients are doing, what type of tenants they’re seeing, what areas to avoid, and if they can refer good contractors. That’ll give you a feel for whether turnkey or light rehab makes more sense. Since you’re both working and can’t be there day-to-day, a turnkey or light cosmetic rehab is probably safer for now. You can always go for a full flip later once you have a system in place or more freedom to travel.

Also, with $10K in planned renovations on your current home, it’s not a bad idea to sit tight for a few months, knock that out, and build your reserves back up. You don’t want to stretch too thin on your second deal—especially out of state where things can go sideways quickly if you don’t have a team you trust yet.

In short:
Take that PM call seriously, plan a scouting trip, and maybe aim for a light-reno rental property in a landlord-friendly market with low entry prices. And give yourself space to finish your current project before jumping into the next.

You're playing it smart already. Just stay patient and intentional.

Hey @Brian Thabault - great for putting yourself out there. 

Happy to stay connected and point you in the right direction, I'm an NYC based broker and investor. 

I've worked with folks on selling (& buying) mixed use properties and can shed some light on specific transactions based on where you're zero-ing in on. 

Your best bet would to pick a mixed use "business" corridor (i.e. Hillside or Jamaica Ave in Queens) and start there while also figuring out the "feel" of the neighborhood you can see yourself living in. 

In my experience working with buyers in your shoes, typically it boils down to balancing the "investment" goals vs. actual "personal" goals (e.g. neighborhood, commute, etc.). 

When you add in current retail spaces, their leases, clauses, etc. sometimes it can take the entire conversation into another direction as the commercial lease in a mixed use space can make or break the deal structure - especially if bank financing is involved. 

Reach out if you want to chat more, happy to put my hat in the ring if you're interviewing brokers + at least point you in the right direction if not. 

Yeah, this setup you’re describing is super common in NYC, especially in Brooklyn and Queens. A lot of long-time property owners or “mom-and-pop landlords” run rooming-style rentals like this—low overhead, strong cash flow, and basically all word-of-mouth tenants. But let’s be real: it’s walking a fine legal line.

Technically, what she’s doing isn’t legal under NYC housing laws. Chopping up a single-family or even a two-family home into 10+ individual rooms without proper permits, fire exits, and zoning approvals violates multiple housing codes. There are fire safety issues, potential DOB violations, and if someone reports it, she could get hit with heavy fines or even vacate orders. Basement rentals are also a huge red flag unless they meet specific legal criteria (which most don’t).

That said, it is a form of “house hacking” in spirit. She’s monetizing every square foot of her property, minimizing vacancy risk, and maximizing monthly income. But it’s not the kind of house hacking you’d see in a textbook or financial blog—this is more street-smart, under-the-radar style.

If you’re thinking about using this strategy, here’s the thing: it absolutely cash flows, but it comes with risk. You’d want to really understand the DOB (Dept. of Buildings) codes, zoning rules, and fire safety standards. You could go the legit SRO (Single Room Occupancy) route or try to legalize a co-living setup—but that takes a lot of work and money upfront.

So bottom line: yes, this is a real thing people do. It makes money. But no, it’s not legal as-is, and enforcement is mostly complaint-driven. If you’re trying to build long-term wealth and not stress about violations or lawsuits, you might want to find a more hybrid approach—like buying a legal 3 or 4-family, living in one unit, and renting the rest by the room where possible within code.

Curious—are you thinking of buying something and trying this model, or just trying to figure out if it’s worth the risk?

Yeah, constantly driving over to let someone in gets old fast—especially if it's late at night or happens often. A lot of landlords and managers handle lockouts with a mix of prevention and systems that don’t require them to be there in person.

Some of the common ways people deal with it:

They install smart locks or keypad entry systems, which are a game changer. You can generate codes for each tenant or just reset them remotely if needed. Some locks even let you track when someone enters. It’s a little upfront investment, but saves so much time and hassle.

Others just keep a lockbox on-site (like the realtor-style ones) with a spare key inside, and only give the code to tenants in case of emergency. You just have to make sure it’s secure and not super obvious.

Some landlords also charge a lockout fee—$50, $100, whatever—to discourage carelessness and make it worth the trip if they do have to show up. If your friend doesn’t want to be the one doing it, they can even pay a handyman or local locksmith to handle those calls for a fee.

It just depends how hands-on your friend wants to be. But in general, tech + boundaries = less stress.