ADVICE NEED IN NYC--THANK YOU

[Alexandra Pino]

Good afternoon:

I'm a bit nervous since this is my first time starting a discussing on BP. But like many members on BP, I'm trying to get started with rental properties, and I'm trying to educate myself the best I can. I live in NYC, and as everyone is aware, the properties in NYC are costly; nonetheless, I have been looking into two-family homes using an FHA loan with 3.5%. I would live in the house and have a tenant to help with the mortgage, but within a year, I would move out and rent out the apt to other tenants. I was having a discussion with my boss, who's a seasoned investor, and he advised that I should not depend on the tenant to pay the mortgage and to have some money set aside just in case the tenant turns out to be a deadbeat. So now I'm afraid even to get started. What has been your experience, and what you would advise?

[Ralph Poirier]

Listen to your boss!  If you can't afford the mortgage on your own don't do it unless you have reserves to back you up in case of an issue.  You live in the People Republic of New York.  Tenants have all the rights so a big bad landlord like you won't stand a chance (sic).