Purchasing SFH 1 property (4units) first time.

[Christopher Teal]

I have been trying to find my entry into SFH rentals and have come across a property that caught my eye but don't know if its even realistic for a starting point. I tried to punch in the numbers on a spreadsheet that I was provided with to come up with more accurate numbers but having some difficulties.

Asking Price: 389,000

Land: 2.25 acres

Total Units: 4 (three are currently rented 1 is the owner) 

• Unit A: (2/2)-owner occupied (I expect this to rent for $1200) 
• Unit B: (1/2)-Leased 5 months ago, 1 yr term, $1000
• Unit C: (2/1.5)-Tenant moving out 3/1, was paying $850
• Unit D: (3/2)-Just leased in January, 1 yr term, $1250

Property Taxes: Estimated at 7,000 annually

Insurance: Not real sure on this number either as I have no property to compare for rates. 

Maintenance/lawn care: Not real sure on this number. (going to have a dumpster for trash and have to pay for lawn care)

As for loan purposes I started with looking at a hard money loan. I don't really know what will be required as a down payment on a loan of this value. Will i still need to put 20% down for a loan of this type?

I know I lack a-lot of knowledge on this and just trying to get an idea. Ive done a-lot of research but just seem to continue myself more lol. Every time I look at a property for investment I just manage to talk myself out of it. I do understand that their is probably a-lot more information needed for something like this but that is why I came to bigger pockets. A-lot of knowledge and wealth on this site so i figured i could come here and get all the positive/negative feed back that's needed lol.

[Michael Glaspie]

Insurance quote:

Call a local insurance provider to give you a quote. They only need the property address.

Loans:

Hard money is expensive. You can acquire a bank loan for lower interest rate and get your rental income to help balance out your DCR to qualify for the loan.

Most important step:

TAKE ACTION!! You say you keep talking yourself out. What would be the worst case scenario if you put an offer in? Worst case is it doesn't get accepted. Or even worse, what if it DOES! Then remember you have an inspection period where you can look at all the potential issues. But if all the numbers are there then stop making excuses and start making offers.

Disclaimer: I am not telling you to just put an offer on this property just because. Haha, I just am trying to inspire action from you. After you do all the calculators and ask all the questions you have to be ready to move. This is the NUMBER 1 thing that stops most investors from starting.