Sitting on a Gold Mine

6 Replies

I am looking at getting into real estate. I have a VA that I can use for my first purchase. I plan to live in one of the units and pay rent to myself to do a refinance sooner than later. I will not have to pay the finance fee either. The problem that I am running into is finding property. I would like to start with a quadraplex as it will provide the largest amount of cash flow. However, there are only duplexes in my area. The housing market here is insane. Houses are staying listed for days not even weeks. Should I look into building? Wanting to make sure that my first property is a least a base hit.

How long have you been looking at what's hitting the market EVERY DAY? And I do literally mean, looking and getting eyes on every. single. property. that hits the market. Not going out and actually seeing them, just seeing what's hitting the MLS and loopnet. If you don't have access to the MLS, just do properties that have hit Zillow. This will really start to get your chops flowing. But going into building is a whole new beast. Do the above for about 2 weeks and you will start to notice trends and opportunities.

Also, do you have a school in the area? I know some people who didn't go for a quadplex, but just instead bought a house and rented out every room and did extremely well. 

Let me know your thoughts.

I have been looking for about three months.  I have a realtor that I have been working with and got on her list to see any listings in the area.  There is a school nearby but would add an hour to my commute everyday.  Great recommendation though.  I will look at broadening my search criteria.  Thank you sir.  I have been to look at a few new duplexes in the area.  But they will not cash flow or break even at that the prices they are asking with full financing. 

The gold mine is in the ease of access to low cost money.  Especially with interest rates are as low as they are today.  I have always heard that finding the deal is the hardest thing to do.  I have to agree.

I understand the concern.  I am playing the cards that are dealt.  I have been working hard to get this point of being ready to pursue this business.  I know that interest rates are rising and I think that they are going to be going higher.  However, I know that the interest rates affect cashflow on a minimum scale.  You would just need to ask yourself if risk fits your situation.  The rates are not a driver for me at this point.