Buying a Small Multifamily
Noob question here - looking at buying a small multifamily (Think Triplex or Duplex).
I currently make low 6 figure income ($100-200k) with great credit score (750+). But minimal savings as I am pretty recently out of college. I have professional experience in investing but on the commercial side.
I would want to buy something stable that would be have immediate cashflow to cover the mortgage. Would look for value add opportunities.
How do I approach understanding what kind of purchase price I would be able to cover with debt? I understand it's pretty straightforward with a SFH but with a multi i'm not going to be able to cover mortgage with my 9-5 income alone. Can't imagine many starter investors could unless you're making crazy money. What would be some good starting advice on approaching lenders to see how much I could get approved for? Will having good income and credit store count for something or do I need to focus on saving? (i'm in a very expensive location so it's tough).
I understand with and FHA loan I can buy a 4plex or something similar and occupy one of the units for low downpayment then refi after I get enough cashflow to cover 20%.
Mabye it would be a better Idea to buy a SFH first, but I'm nervous about buying anything too far from where i'm located. Seems like a small multifamily would be a better investment.
Appreciate any advice from anyone who bootstrapped it when getting started. Cheers!