New investor looking for advice

14 Replies

I'm a teacher who recently bought my first duplex in November. I bought a place for 74k and have a cash flow after mortgage and escrow of about 330/month.

Really just looking for any advice and connections that would be helpful as I begin this journey. Hoping to have 5-8 units eventually as a supplement to my teaching income.

@Ezekiel Stroupe 

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Wishing you the best!

@Marcos Paulo Cerra hey Marcos! Thanks for the reply. No, I haven’t. I just did a quick search and will have to look into it more closely.

One thing I do have to play with is I am lacking pretty badly on the knowledge to do a lot of the work to rehab. Hoping to slowly improve that with getting into rentals.

There are some great articles here on BP on it. There is also BP book on it by David Greene which I have not read yet. 

Rehab is also not something I am very good at but have heard some say to hire workers to handle things like that

@Ezekiel Stroupe .  I recommend HomeRenovisionDiy on youtube.  I'm not affiliated he just posts videos of common problems in easy to understand ways.  As always you have to double check codes (he's Canadian) and there is always ways to do something better, cheaper, etc.  The general concepts he offers are good though.  

Before learning about other kinds of investment strategies I'd focus on what you started. 

That was a great decision to purchase a duplex; you said you're cash flowing $330 per month. At a purchase price of $74k that seems unrealistic in my opinion. That's almost $4k per year. How are you running the numbers? Are you factoring in maintenance, insurance, cap x, vacancy, property taxes? 

@Ezekiel Stroupe I would take every dime of that $1500 and put it into a saving account. Banks will look for a reserve of about 6 months per property, especially when you find property #2. You want to be smart given the market cycle.  

@Jaron Walling yep, definitely. Have been saving everything I get from the property. Also, doing a little rehab work currently that I had budgeted coming into the purchase. As it stands market would suggest I could get about 100 more per unit. After the work hopefully it’s even more. Currently have some great tenants though!