Early 20's, First Time Home Buyer, Aiming at Buying a Plex

Early 20's, First Time Home Buyer, Aiming at Buying a Plex

Member since 2018 · 3 posts · 0 votes

Hey guys,

So I just graduated school and started my first full-time job as an engineer. I've been doing more and more research and I have decided that I want to buy a plex (2, 3, or 4-unit) sooner rather than later. I would love to take advantage of first-time home buyer type programs, and other benefits for this first purchase, especially because my income is lower now than it probably will ever be. I would really like to start with a plex and live in one of the units, so the challenge is finding the right deal provide a positve cashflow. I would plan on using a property manager because my passion is my own career, and also because I will spending a good amount of time away from the area over the next several years. The ideal time frame to buy a property would be this summer (June-ish 2019), but if it didn't work out, I would hold off the following summer (2020). I reside in Fort Walton Beach, FL.

This is my situation, and there are certainly many variables to consider. If you have any thoughts or advice about financing, property managers, or mulit-family properties, let me hear it! Also, feel free to ask any questions. Thanks!

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John PowellPro Member
Real Estate Agent · Kennesaw, GA · Member since 2015 · 308 posts · 153 votes
7y

The green acres area does flood sometimes but most of the houses are built up enough to keep them out of the water. There are pockets all over FWB that flood so always check the FEMA flood maps before you make an offer as flood insurance can be expensive and turn a decent rental in to a bad deal. 203k requires that you hire contractors for the rehab and has a fair amount of red tape but can work well to get into a property that other financing options cant touch.

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  • John PowellPro Member
    Real Estate Agent · Kennesaw, GA · Member since 2015 · 308 posts · 153 votes
    7y

    @Pearson Wade you sound like you have a solid vision for what you want your investment to look like. You first step would be to talk to a local lender there in FL now to see what you need to do between now and June to be in a position to buy a small multi family property. I know that FHA guidelines have changed to allow higher purchase prices in 2019. What areas are you looking to buy? Currently there are very few small multi family properties on the market near Eglin. I would also start a relationship with a Realtor now who can send you a feed of properties that meet your criteria. You can use the BP calculator to run the numbers on deals that come up so that when it is time to buy you know a deal when you see one. I'd be glad to get you set up on a feed. I am a Realtor and have an investment in Niceville currently.

  • Member since 2018 · 3 posts · 0 votes
    7y
    Thanks for the advice @John Powell and I will let you know if I end up going that route! I'm interested in a property somewhere within the FWB area, meaning west of Eglin, east of Hurlburt, and north of Okaloosa Island. I haven't narrowed down a specific neighborhood yet, so I'm researching that as well. I currently rent north of Green Acres road, and I like living there, but I heard that flooding is a major problem so I'm really hesitant. On another note, one option I also would like to know more about is the 203k loan. I'm assuming there are a good number of worn out properties in the area that just need a little TLC to attract renters and raise rent prices.
  • John PowellPro Member
    Real Estate Agent · Kennesaw, GA · Member since 2015 · 308 posts · 153 votes
    7y

    The green acres area does flood sometimes but most of the houses are built up enough to keep them out of the water. There are pockets all over FWB that flood so always check the FEMA flood maps before you make an offer as flood insurance can be expensive and turn a decent rental in to a bad deal. 203k requires that you hire contractors for the rehab and has a fair amount of red tape but can work well to get into a property that other financing options cant touch.

  • Real Estate Agent · Destin, FL · Member since 2016 · 57 posts · 45 votes
    7y

    Hi @Pearson Wade,

    I am excited for you to start your journey in real estate investing! It is really a great way to build wealth, and it sounds like you already have a good grasp of how you want to do it!  I agree with everything John said. Your first step will be to find a lender that you like and who can help you. Many lenders may require that you have two years of work experience to get qualified, so that is something that you'll want to discuss with them before getting too far into the process.  As John said, there aren't too many 2, 3 or 4 unit properties on the market right now, but there are a few, and I imagine more will come up as we get into the Spring and Summer.  I am also a Realtor, and would be happy to help get you connected with some lenders and/or show you properties when the time comes!  I have multiple investment properties in the area including single family homes as well as apartment complexes, so I'm familiar with the investor mindset.  

    If there's anything I can help you with, please feel free to reach out!

    Jen Wilson

    Century 21 Hill Minger Agency

  • Member since 2018 · 3 posts · 0 votes
    7y

    Thank you @Jennifer Wilson and @John Powell for your advice! It looks like I will start by figuring out what my financing options are. I will start with a broker I know personally, but I might head your way to seek other lending options as well. Thanks!

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