All Forum Posts by: Musa K.

@Mark DePaul

Thanks for taking the time to reply.

1. I think I am able to take on more risk in the short term. I actually have a career seperate from real estate which funds my life and then some, but the goal of these sfh is to diversify and be a long term investment.

Ideally plan to hold as long as I could. Hoping for 1. Depreciating benefits, 2. Maybe $250 of cash flow. 3. Tenant pays all expenses and i slowly build equity. 4. Appreciation but its not in a “hot market” so doubt it would appreciate much.

2. When you say break even…how are you calculating that and what exactly does that mean

Hypothetically speaking, lets say I want to get a SFH out of state, which a property management company will manage. The selling price is 190k. I get these mortgage rates:

20% Down No points- 4.75%--> Monthly principal and interest $792

20% Down with 2 points- 4.125%--> Monthly principal and interest $736 + $2933 for buydown

25% Down No points- 4.25%--> Monthly principal and interest $701

25% Down with 2 points- 3.75%--> $659 with $2713 buydown


How should I be approaching these rates and mortgages in general? 

My goal is to ideally get another property so having some extra cash for a future down payment is somewhat important. Obviously I want the lowest interest rate possible...but at the end of the day, if all things go accordingly, this will be paid by my tenant (not sure if this is the right way to think). Cash flow is important but I do not actually need that extra cash right now as these are for long term investments. 

So when I look at these rates, 3.75 is obviously the best interest rate, but would require the highest down payment (25% with 2 points). 20% down with 2 points gives me a better interest rate than 25% with no points, and saves me about $6500 cash which I can then use for future purchase. So from my perspective, 20% down with 2 points serves me best. 

Is this how I should be approaching mortgages? What should I ideally be looking at or calculating when determining what is the best option. 

As always, thanks for the help/guidance!

Great thank you. Yes, my portfolio strategy will be quite simple. SFH with property management in out of state. I think my question was more for asset management, the specifics of what I should be doing for tax planning, understanding my own numbers, and any other things. But will look more into asset management, appreciate the help!

So lots of resources on how to look at numbers and figure out deals when it comes to single family houses. Lots of resources on what to do when starting out. But now what.

I have a single-family house with tenants in place, what are some resources available on what I should be doing right now? Being managed by a property manager out of state.

Any help or guidance appreciated.

The competition here on Long Island is insane. Besides the high prices to entry, high taxes, it seems like as soon as a deal becomes available it is gone by the time I am putting in the numbers to whatever calculator I am using. 

Looking for ideas on locations, within driving distance from NYC, max 3 hours for a vacation property for my family that could also be used for STR on VRBO/Airbnb. Any help on where to start appreciated?