Updated over 2 years ago on . Most recent reply
First Time Deal - Analyzing Duplexes in Upstate SC
Hi! I'm analyzing my first set of deals. My aim is to build a multi-family home portfolio in SC. I'm currently looking through upstate SC with a realtor and have a pre-approved budget of $300k. I will use an FHA loan for this first property for 3.5% down. My first deal will be a house-hack. I'm generally looking at more "fixed-up" homes with the understanding that my cash flow will be lower by doing so. During my analysis, some deals work out as long as I move out after the first year but are in the red if I live there. It would be the equivalent of me paying ~$300/month in rent versus paying ~$950+/month in rent elsewhere.
One important thing to me is the security of having a home and not constantly throwing my money into increasing rent prices in my area. I also value having a safe home rather than something that needs a ton of fixing up, though I don't mind putting up a fence, doing a paint job, getting rid of a smell, etc. When analyzing these deals, is it worth it to have a caveat of "well I'll pay very little in "rent" while I live here, then I cash flow when I move in a year", or should I view these as they are on the surface: bad deals that don't make me any cash flow.
This is my first post, so hello real estate friends :)