Getting started with your first 2-4 unit property

10 Replies

What are things first time investors encountered when they started. Anyone with experience in south west Michigan and surrounding areas  is specially  relevant and appreciated.

- financing 

- building structure 

- ROI

- anything I need advice anything will be greatly appreciated

Hey Kevin, welcome to BP!

Its great that you are trying to learn more about REI. What have you done so far? What books have you read, etc?

There is a lot of information on this site already on the various items that go into buying your first property. I am in the same part of the process of you and I just continue to read articles on here as well as listen to every podcast I can. I am still building up capital to put down as a down payment so I have time to learn! Good luck!

I have read the First time landlord by Janet Portman and Marcia Stewart  and every landlords legal guide by the same authors! 

That sounds like a good start, I'm working through the Millionaire Real Estate Investor now.  Its a great book.  I agree with Jeremy read the forums, listen to podcasts and save money.

I am currently trying to close on my first multifamily, my biggest problem so far has been financing. When I found a house that I wanted to tie up asap, I didn't even have a lender picked out. Also, I am quickly learning that I need to have a really good idea of what type of properties I want to look at including: neighborhoods, purchase price, condition of prop, projected ROI. Not having a clear picture of my type of property has resulted in me wasting my own time. That being said you should also spend a lot of time learning about the area you want to invest in.

If you're going for your first 2-4 unit property, I would definitely look into FHA financing. You would have to live in one unit, but you can get something like 97% financed at a really good rate. It's definitely the best way to go to get started in buy and hold.

I am just starting to look into FHA good response from all my fellow BP family... thanx

If you can @Kevin White I would definitely look at buying owner-occupiied with the FHA mortgage 3.5% down. Then you can get out in a year and do it again if need be. Or just move on and buy your first SFR and you still get to keep the interest rate and that low down payment on the first multi you bought. Otherwise you are looking at putting at least 20% down with any type of traditional financing. Good luck!

Thank you Brandon gentile that was very useful. I am interested in buying a 2-unit in Battle creek,MI that I will live in for 1-2 years while I learn more about the business side of things, I would also like to do my own work as I am taking DIY classes that local businesses offer.

Thats perfect, Kevin. Thats the way to go. Most people can't do that because of family issues or logistics. This is where the younger crowd has a HUGE leg up on most. If they capitalize on it then they can really start off on the right foot!

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