All Forum Posts by: Ahmed Saad

Since it's here in NY I would definitely advise contacting an attorney before you do anything. Resend your demand for rent through certified mail with return receipt!  Don't cheap out and skip this step. Both the certified mail AND the return receipt are very important. This proves you made the attempts to contact the tenant at the legal address they provided you. 

If you misstep it can cost you more than lost rent and frustration.

Welcome @Lawrence Aiello! I'll echo what @Ralph Chiaia said. Bushwick is definitely a neighborhood you can house hack in. I'll be glad to connect with you off-forum with some recommendations while you're on your journey. Make sure you have a preapproval set before you go looking. If you have any questions, feel free to shoot me a message.

@Trix Contreras definitely research and talk with a CPA before you sell anything. You may have capital gains tax which you should check out. Hate to be the bearer of bad news, but would also love to save you some 💵!

Correct me if I misunderstood, but are you planning to liquidate investments in order to pay off the debt? If so, you will have to pay tax on that. 

Hi @Trix Contreras, 

I paid off my student loans about 10 years ago. Mine were significantly higher than yours. I can say I felt really great having them paid off. To say "I felt free" from that burden is not an understatement. If you're committed to it, good for you!

But now that I am older, I can say it may not have been the smartest financial move. My loans were at a 4% interest rate and if I had invested the $50K in an index fund or real estate, I probably would be better off. Then again, having the burden lifted from my shoulders mentally allowed me to expand to doing the things I am doing today.

It's all a very personal decision. If you are able to compartmentalize, stick to a plan, and be patient, I'd say hold off and invest. If you feel the burden is too great and getting them paid off will release the shackles that may be holding you back, then get them done and live your life. Hope the perspective from someone a bit older helps.

If you HAVE to sell, then do it. Otherwise, you should hold it until the market picks up again. I'd wait a few years; the market for condos will be better and there will still be value for a buyer with the tax abatement.

Be as nice as you can. But dot you i's and cross your t's. There's still an eviction moratorium and people can just stop paying rent entirely and not go anywhere for who knows how long. Prepare yourself financially so as to be able to withstand 2 years of lower- to no rent.

Home inspection is a lot of work and paper work.

I am renovating some properties and paid good money to an environmental inspector for asbestos testing. He literally takes samples, sends them to a lab for testing and collects a checks. He keeps the difference between the lab costs and what I pay, and the testing is based on his schedule. Not a bad side-gig if you ask me. AND, it forces you to be knowledgeable about building codes etc.

I am pretty much exclusively interested in the small multifamily properties you described. To be direct, I don't think the FHA program works in such a competitive environment as NYC. Sellers who are represented by brokers want to see a committed buyer who is putting down a solid down payment and can close. Additionally, savvy brokers know those programs tend to take time to close and are not guaranteed to be approved; thus they may steer the seller away from offers with an FHA approval contingency. If you are committed to the FHA path, you may have to end up offering asking price or above in order to get your offer taken seriously. Additionally, FHA programs have a maximum purchase price which is usually below the market prices of most 3-4 family properties.

If you find that you still want to/are able to move forward I HIGHLY recommend you purchase a property contingent upon it being vacant. You will have to do some work to fix up the units and there will be a cost to holding the property and fixing it up but you will be able to be selective about your tenants. Here is the most valuable tip I can offer, and it is genuinely priceless:

Rent to tenants that have their parents are co-signers. You will  have multiple people responsible for the rent and care of the apartment.

Good luck!

-Ahmed

Go find out who does their leasing and message them. Put together a flyer with attractive information about your space and see what happens. Make sure what you are offering matches up with their requirements.