Updated over 9 years ago on . Most recent reply
First deal
Hello BP,
I'm 25 and I'm new to real estate investing. I am about to close my first deal on a forclosed triplex in Visalia CA. I purchased it with a FHA loan, 3.5 down and 4% interest. The surrounding properties are also multifamily and charge anywhere from 600-700 a month for rent. I'm thinking that I want to charge 700 a unit. I will live in one and rent the other 2, which will give me 1400 a month. The estimated Morgane payments with everything included is 970 and tenants will pay all their utilities. Bank paid for closing cost all I have to pay is down payment and 3000 for minor rehab, it already passed a professional house inspection.
What do you guys think? Any start up advice? How should I go about running the property? When can refinance it and take out money for my next purchase (brrrr). Thank you in advance for your help☺
Most Popular Reply
Mario sounds like you have a good plan. I was about the same age when I bought my first rental in Visalia. I kept on buying and got out the day job at age 31.
I would get the property performing for 6-12 months, rent out your unit and move on to the next property. How much repair does the property need? If if is a good property and the future rent is around $2,100, I don't see why you wouldn't be able to refi get your 3.5% down back out and remove the PMI.
Stick with you goal. There are people around us that can be a negative influence. Most people don't take risks, most people will grow old, sitting in the corner with a blank on them. We aren't going to become that.
Frank