New to Real Estate · NY · Member since 2019 · 18 posts · 2 votes
I am looking for SFH/MFH and want to start slow, how much should I budget? I am looking to gain experience and start my journey but don't want to get burned. Looking in the area, the properties on MLS need some rehab and not sure how much to budget typically for light to moderate work. Is it difficult to cashflow without rehabbing and just rent out an outdated unit so long as the amenities and appliances function?
A quick zillow search shows you can get into a lot in Dayton for $150k or less. Go to zillow, or your favorite search platform, and look at the properties there. Track the prices of the properties that match what you are looking for. If you are house hacking, budget 3-5% down; if you are purchasing as an investment property, budget 15-20% down. Talk to a local lender about average closing costs and build that in. Talk to a local insurance broker/agent about how to estimate insurance costs and build that in.
Wilson, every project is different and comes with it own unique set of circumstances, your budget is whatever you choose to make it. However, you need to be clear on what your real estate goals are; SFH and MFH are very different projects with very different expenses which require adequate budgets to have a decent ROI.
Regarding outdated units to cashflow, just don't expect top dollars for it or expect to have ideal tenants.
A quick zillow search shows you can get into a lot in Dayton for $150k or less. Go to zillow, or your favorite search platform, and look at the properties there. Track the prices of the properties that match what you are looking for. If you are house hacking, budget 3-5% down; if you are purchasing as an investment property, budget 15-20% down. Talk to a local lender about average closing costs and build that in. Talk to a local insurance broker/agent about how to estimate insurance costs and build that in.
Wilson, every project is different and comes with it own unique set of circumstances, your budget is whatever you choose to make it. However, you need to be clear on what your real estate goals are; SFH and MFH are very different projects with very different expenses which require adequate budgets to have a decent ROI.
Regarding outdated units to cashflow, just don't expect top dollars for it or expect to have ideal tenants.
This is true, i should narrow down my buybox. Ideally MFH are better at least i'd have some sort of backup for rent collection.
A quick zillow search shows you can get into a lot in Dayton for $150k or less. Go to zillow, or your favorite search platform, and look at the properties there. Track the prices of the properties that match what you are looking for. If you are house hacking, budget 3-5% down; if you are purchasing as an investment property, budget 15-20% down. Talk to a local lender about average closing costs and build that in. Talk to a local insurance broker/agent about how to estimate insurance costs and build that in.