I am currently 25 years old with a stable 9-5 job in Southern NH, right on the border of MA. Currently living with my parents and have saved up enough money for a 20-25% down payment for houses in the 200K~ range.
My goal is to find a 2-4 unit multiplex and I will hire a property manager as I have no handyman experience at all. I do not intend to live in this so it would be fully rented as well.
So my question is, does this seem like a viable idea in the current area I live? Is there anything in particular I should be wary of? I still have much more research to do and any advice is greatly appreciated!
Congrats on saving so much and allowing yourself the opportunity to do this! As your first property, I think it is a great idea to house hack your way to a first rental. You will be able to purchase it with less money down as long as you're planning on living there.
In terms of hiring a PM my advice would be to think about what you would want them to do before you commit. Do you just want someone who is handy that can fix some of the problems that will arise or are you looking for someone who will list the property, screen the tenants, etc. If you don't mind doing the latter part-screening tenants and showing the property- then I would just look around for a handyman that you can build a relationship with and call on when you need a handyman fix. If you're looking to buy the property and be hands off of everything then I would consider hiring a PM.
Hope this helps and best of luck!
Welcome to BP. I live in the Seacoast area of NH, so I don't know the Nashua Market. If it's anything like the Seacoast I don't think you can be profitable enough to use a property manager on a 2 or 3 family property. Also the 4 family's over here are going for over $200,000 on MLS. I think you'll probably be looking at something that needs a lot of work at that price. Anyway. in your research make sure you know how to crunch the numbers, and use the BP calculators
Thanks for the replies guys, very insightful regarding the use of a PM.
I think I would like to hire a handyman at first and find renters myself, however I am very lost as to where to begin to learn about landlord duties and laws (any book recommendations?).
Also is there any way to figure out how much a PM would cost for 2-4 unit multiplex in my area other than asking for a quote directly? Thanks again!
I would budget for a property manager whether or not you plan to use one, that way if you do decide to use one you have the money for it. Call a pm company and find out what they charge and what is included- around here 8% is typical, but I have heard of 8% plus 1 month's rent when they get a new tenant, and 10% for other areas.
There are loads of books available and lots of suggestions in the blog and forum posts, and of course the forum and blog posts themselves are excellent resources!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing