Need advice

6 Replies

Hi. I need advice. I've been renting to my landlord for five years and he wants me to buy his two houses. One of them I rent from now and the other sits beside it. The houses aren't worth a lot.. Maybe like 20,000 a piece at most. I want to invest in a multi family house for my first investment but he said
for me to just buy them from him instead for 30,000. So I was thinking about buying them and fixing them, then move on to multi family houses later and I can rent these two out..? Is that a good plan or should I just get a loan for the Multi family house? Thanks.

Awesome that you're ready to buy!

Need some more numbers...

Rents?
Estimated repairs?
ARV?

Buying a place for 30 that's worth 40 and then having to fix it seems like a bad deal...but some more numbers would help confirm or disprove that initial gut reaction.

Steve

The houses aren't like falling apart or nothing they are both rent ready, I would just do minor things to make them look better but my landlord says he just doesn't want to be a landlord anymore and since I've lived in one of the houses he wanted to sell both to me. He said that he's willing to sell one for 17,000 and the other for 16,000. I can get them on one mortgage. I pay 450 for rent now and my mortgage for both would be lower. I would love to just go with the multi family house but I can't decide which is going to be a better investment. I could rent both out for 450 or get the multi four plex and live in one unit but the others rent for 550 a month and then later move out. What do you guys think?

That is great wanting to start at a young age. You need to post more info about the properties. Price, expenses, taxes, insurance, any rehab costs, etc. It sounds like your landlord may be motivated. Are you positive of value?  You need to find out more and put the numbers together to determine the quality of the investment. Good luck!

Sounds like an opportunity, I wud like the others have stated get more numbers together in both houses ur landlord is offering and also analyze the 4plex ur looking at and see which is more profitable now and long term, is ur area u currently live in a good area?...usually when ur insure it's coz u don't have the answers based on doing ur due diligence in the deals...all the best

Yes it's a college town and the multi house is close to campus. The houses aren't far either, so I was thinking maybe buy the houses and then later look into the multi house or others later on. My landlord is willing to sell the house asap and I think maybe that's the better option right now. Thanks for the advice.

It sounds like a great opportunity for you. Get your nose into some numbers and listen to what they tell you. If you want advice analyzing them put them up and someone will likely be happy to help.

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