I am excited to say I got offered a full time position in my field of study after graduation! This now means I can start checking the market for my first investment! I am from Cleveland and looking to invest somewhere around here. My goal is to find a multi family or single family that works well with an FHA loan. I plan to live there for the year than hopefully buy my actual house (or possibly rinse and repeat). I can't wait to start investing at such a young age (22)! I want to thank you guys in advance for all of my future questions.
Welcome to BP @David Stergiou . Congrats on the new job and good luck with your first investments.
Congrats! That is great news. Feel free to reach out if you have any questions about the area.
congrats. What is the job? Do tell.
@David Stergiou , congrats!! If I were you, I'll buy a 3-4 unit building with an FHA loan and try to have the tenants pay the entire expenses of the building, so I can live for free in the smallest unit!
You'll do good no-matter what you buy, and can you imagine buying a home with little down, seller paid closing cost, and living for free? How awesome that will be? What could you do with all the extra income saved? Maybe buy more property? :)
Thank you for all the support!
@James Wise I got offered a Buyer position at a manufacturing company in Brunswick! I am still living in the Parma area though. I plan on investing on the west side as well!
@Lumi Ispas that was my plan. I love the extra income that multi families can bring and the living for free part! My only concern for multi family is all of the headaches that could come with it. Examples being tenants complaining about other tenants, living so close to complete strangers (I guess it's only for a year), and a higher rate of tenants coming through. The main reason I would get a single family is for the stability of the tenants (hopefully) and less problems (also hopefully).
@David Stergiou , it's all mindset. When your tenant in the single family lives, you have to cover 100% of the mortgage and all expenses until you find another tenant. In a building, most of the time you make really good cash flow, so if one tenant leaves unexpectedly or doesn't pay the rent, the other tenants are still covering most of my expenses and mortgage, I am just not getting cash flow for that month or those months.
I usually can control a higher purchase price, which is one of my goals, to get as many mortgages as possible with low down-payment, locked on 30 year mortgages at low interest rates. It helps me create more wealth.
A single family might cost 200K, a building 400K. I prefer to have the bank loan me 400K at 3.5% down, and have the tenants pay off 400K.
Let me ask you think: 30 years from now, or 23 years from now (if you add one extra mortgage payment a year, every year to your payments, your property will be payed off in 23 years), would you prefer to own 200K or 400K property paid off and would you prefer to get a $2000 cash flow (rent on single family home after mtg paid off) or $5000 cash flow?
How lofty are your goals?
Regarding the tenants, as long as you screen them well, you'll have a minimum of issues with them. And if you have questions how to screen them, I can help you with that!
Sounds like a good job with a high w2.
Starting this young & keeping your living expenses extremely low with the O.O. Multi you will be set up great for the future.
You know who to call when your ready to invest in the Parma/West Cle area.
Congrats @David Stergiou . I'm in a very similar situation as you, and from Cleveland too. It's exciting to see other graduates on BP getting started early. Best of luck.
Welcome to the forums and congratulations on the job.
Congratulations, I maybe be in San Antonio but I think us recent Grads should keep in contact. Good luck
@David Stergiou Congratulations, and welcome to the site!
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