All Forum Posts by: Sabi Const

@Steve Vaughan

Thought you might say that! Yes, the tax advantages is what has attracted me to real estate as well. 

May I ask, when you mentioned a house hack will help with the down payment requirements, can you please elaborate just a bit?

When you mentioned a plex, how many families would you suggest to look for 2,3,4? What's an ideal # based on your experience?

Thanks for the kind words, a lot of hard work to get here! 

@Steve Vaughan

I am asking due to leverage. The main goal is to put as little down based on current interest rates for the numbers to work out while hopefully investing in an area that should appreciate over time. Also, the question is are these funds better dedicated to real estate as opposed to high quality dividend paying stocks over time?

@Russell Brazil

Thank you for your reply. At this point, cash flow is not necessary. But I am not sure how to think about the speculation on appreciation in the sense that if there are vacancies in a property that barely meets the total expenses, does it still make sense as an investment? I know that it all depends on the area and tax deductions but I just want to make sure that all factors (if not most) are considered before committing significant capital. 

An option is buying a brownstone in a hopefully up and coming area but that cost is around $1-2.5M so you could image the factors that need to be considered prior to putting the down payment. 

Thank you all for taking the time to read this post. 

I am new to real estate and am starting to search for deals. I am in the NYC area and am curious what you might suggest...

Option 1 - purchase a 2-3 family rental property (Queens, Brooklyn, Long Island) - the rent should cover the mortgage PITI (principal, interest, taxes and insurance) -- also possibly account for a management company ---- for example: $650,000 2 family with rents of approx $3600-4000/month.

Option 2 - purchase single family homes in cheaper areas such as in FL or AZ for example for $100-120k and rent them out for approx $800-1100/month

I was speaking to a real estate professional who's been in the business for decades and was strongly advised to go with option 2. 

I have used the valuation calculator but would be curious to hear what you all think... Go for cash flow or potential appreciation of real estate in potentially more desirable areas?

Also, from a financing standpoint, all the lenders I have spoken to want 25-30% down payment. Is there another option? I would prefer to not seek outside investors.

Please feel free to offer any other options that might be better to consider. 

Thanks again!

My goal is to start an investment fund with a small group of qualified investors who are interested in flipping homes in the NYC and surrounding areas.

Objective: $1,000,000 fund to flip properties
Membership: 4-5 people with $200k-$250k to invest
Partnership is to be split in equal percentage (keeps things honest & attractive)

Looking for like minded people who are able to commit the capital, provide the real estate know-how and are problem solvers. 

The reason for the $1MM fund objective is because properties in NYC & boroughs are more expensive and being able to buy for cash will provide enough leverage. Additionally, future objective of fund is to reinvest the proceeds back into the fund and then ultimately acquire rental properties with high cap rates / appreciation estimates.

Love to hear your thoughts if this makes sense or just go about it myself on a smaller scale?