South Jersey · Member since 2019 · 40 posts · 13 votes
Hello inventors , my name is Baahir. I am new to the world of real -state . Im am 27 with no kids and looking to invest and create cash flow . I’ve have around 25-30k in money to start ? What do you guys think is the best option to go towards investing ? A Duplex or a single family ? I live alone in apartment right now by myself. Just liking to see what would be the best option in my sit
Rental Property Investor · Sonora, CA · Member since 2018 · 10 posts · 3 votes
7y
@Baahir Starkey I think househacking would be a perfect strategy for you. If you acquire a 2-4 unit property and occupy one unit you should be able to save lots of money. Not only will you get a better mortgage rate on a owner occupied residence you don’t have to put down 20%plus on a property. On top of that you should be saving a lot or living for free compared to your current apartment rent. With that savings you can acquire another property sooner. Just my 2 cents, I wish you the best of luck on your journey.
Real Estate Agent · Manassas, VA · Member since 2013 · 118 posts · 63 votes
7y
If you are able to find a multi family property that you can purchase with that $30k that would be ideal as a single vacancy is easier to handle when you have more than 1 unit. As you will discover on this forum, multi families are harder to come by than single families. Use the calculators here and analyze deals that you see in the market(s) you are interested in investing in. Then start making some offers - just make sure that you'll be cash flow positive!
Rental Property Investor · Sonora, CA · Member since 2018 · 10 posts · 3 votes
7y
@Baahir Starkey I think househacking would be a perfect strategy for you. If you acquire a 2-4 unit property and occupy one unit you should be able to save lots of money. Not only will you get a better mortgage rate on a owner occupied residence you don’t have to put down 20%plus on a property. On top of that you should be saving a lot or living for free compared to your current apartment rent. With that savings you can acquire another property sooner. Just my 2 cents, I wish you the best of luck on your journey.
Rental Property Investor · Sonora, CA · Member since 2018 · 10 posts · 3 votes
7y
@Amelia Couey
Typically depending on your situation it will be about 3/4 percent difference on your mortgage rate. I’m not sure about a construction loan, that’s a good question. There are different ways to structure a construction loan too such as stand-alone or construction-to-permanent. I would to here input on the construction from someone else.
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
FHA, 3.5% down, 2-4 plex. Depending on prices in your area, you could then already be half way toward buying another multi family with 20% down.
How much rent do you pay now? A 2-4 plex doesn't have to "cash flow" if you're living in one unit, but your monthly bills could go down quite a bit. But, make sure it will cash flow after you move in and all units rented.