All Forum Posts by: Moustafa Ahmed

@Bjorn Ahlblad

Appreciate the response, I feel the same way. Stay safe and healthy!

Hello BP community,

Hope you all are staying safe out there. Wanted to reach out to get thoughts on my situation.

I purchased a multi family property in NJ (2 units) back in Feb 2020 (live in one, other is up for rent). It’s in a class C neighborhood, currently listed for rent but with the current pandemic I don’t except it to be rented out ASAP.

My fear is if I find a tenant who meets the screening requirements do you think they would not pay the rent to take advantage of the pause on evictions etc? Would you guys suggest pausing until things stabilize? Appreciate any guidance.

P.s - I’m in the same position as I was prior to the purchase (renting) so I’m not necessarily worried about covering the mortgage.

Thanks for the information / reality check Jaysen. 

@Jaysen Medhurst 

Thank you for taking time out to review and yes my wife and I would be house hacking, below are my responses hopefully it provides clarity: 

• * PMI will probably be 2X that. Confirm with your lender. - Confirmed w/ Lender on the amount
• * You're forgetting repairs. Figure 15% combined with CapEx.- Got it
• * Insurance looks a little low. Have you received a quote from a local insurance agent? It was from Lemonade, but im waiting to hear from from an All State Agent 
• * Budget for management (10%), even if you plan to self-manage in the beginning - I will be self managing but will run to be conservative
• * How much shopping have you done for the loan? I bet you can find something without points. - So this is kind of tricky, due to religious beliefs i'm limited to Islamic financing which this lender is the most competitive thus far
• * What about water/sewer, lawn care/snow removal, any other house utilities? How do you usually handle snow removal? No Lawn and Tenant will pay house utilities 
• One thing to mention, the property tax is actually half of what i had within my report (confirmed with tax assessor)
• In addition, i'm not including rent from the fully furnished basement (1.1-1.3k) in my area - would you recommend i include?
  

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