Newbie here, what if anything am I missing?

Question

Hi everyone! And happy almost new year!

I am gearing up to purchase my first multi family in Feb/March using FHA at 3.5% down. Looking at triplexes and fourplexes as it seems a duplex won't produce enough cash flow as I will be occupying one of the units.

I am working fully remote and have a very unique ability to move anywhere in the US for this purchase. I plan on living in one of the units for my required 12m term and after either selling at a profit or buying a second and moving into that one to repeat the process.

I am analyzing deals like so:

Neighborhood and crime rates

School ratings

Employment rates

Comp rental rates

Actual cash flow after I occupy one unit, pay mortgage, taxes, utilities, mortgage insurance, and set aside funds for vacancies, repairs, and cap. ex expenditures as the books suggest.

When I find the ideal property I will fly out to be present during the inspection.

Should I be analyzing anything else??

Trying to be extremely thorough, and maximize my success for my first go. Any advice and tips on something I may have missed is much appreciated. Thank you kindly!

Aaron K. · Answer

@Sherelle Montague this is going to sound counterintuitive but don't just follow the money.  What I mean by that is you will be living there at least for a while so it should be somewhere you can at least tolerate living and that you feel safe, which can be difficult to do from afar.  Many places that look good on paper actually end up having higher turnover, less appreciation, more vacancy etc. in the long run.  I'd narrow your search to a couple of metro areas and fly out to get a feel for the areas before making any offers because you will be living there and as I said before some things are hard to judge from afar.

Sherelle Montague · Answer

@Aaron K.

Thanks Aaron!  I live in rainy expensive WA right now and have for the last 13 yrs so I am very eager to get out of this area regardless.

I am cool with anything other than rain or grey 90% of the year and am analyzing neighborhoods and crime rates on anything I look at, as im not trying to end up in the ghetto! But I appreciate your input! Definitely things to consider, and good insight! Have a blessed new year!