I am purchasing my first duplex to live in and rent the other side out next Month, it's currently under contract, I am putting 20% down, after that, I will have approx 25k left, I want to get another duplex within 5 years, I can't qualify for anymore mortgages, the goal is not cashflow right now, although, I won't buy a property unless it does cash flow well, but the ultimate goal is to pay off a few multi's then have a nice steady stream of income for the rest of my life, should I wait 4-5 years until I have enough to purchase another building outright or should I try and get a couple owner financed deals but the problem is since I can't get another mortgage, I don't know I'd make a balloon payment.
Dean welcome to BP
property taxes ?
25 , 30 , 35 year mortgage note ?
monthly rental income ?
condition of property ?
upfront renovation budget ? ( deferred maint )
your monthly portion of mortgage payment ?
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property taxes ? 3k a year
insurance ? 700 a year
25 , 30 , 35 year mortgage note ? 30 years
monthly rental income ? With both sides rented would be $1300 a month
condition of property ? Remodeled, no repairs need
upfront renovation budget ? ( deferred maint ) $0 needs nothing, move in ready
your monthly portion of mortgage payment ? $817 a month, tenant that is moving in will be paying $950 with everything included, should leave me with around $150 a month in living expenses as the utilities look to be $300-350 for both apartments, the duplex is not seperately metered, will have it metered seperately when I move out and rent both units. Purchase price is 130k, not much available in my market for multi's, most are in need of alot of repairs, but this one is nice, and much newer than the rest.
Nice $150 per month
Congrats on the purchase & your foot in the door to REI. I hope to follow suit. My current landlord buys homes cash at auction. They (a couple) stick to a neighborhood (not trendy areas, but descent working class/being gentrified/peri urban) and simple buy, rehab & rent. They've bought homes with the same or less than the cash you have. Usually 2-3bed bungalows. However, I guess your issue would be having money left over for rehab. I'd have to ask to see how much they put aside for that alone, cause I really don't know.