Updated about 10 years ago on . Most recent reply
First Multi-Family property. Is this scenario a good investment?
Hello Bigger Pockets Community,
This is my first post and I'll get right to the point:
My wife and I have decided to partner up with my brother and get into real estate investing. To start, we are all FHA financing a Multi-Family home in a very desirable location and are choosing to live there for up to a year. During that time we will all be working our day jobs and painting/updating the place during nights/weekends. We have pretty strong credit amongst the three of us and are incomes allow for much more but at the moment we want to start with the one property and see how well we manage it.
After a year, our plan is to save up to be able to purchase something similar, using conventional financing, and keep building our portfolio. First living in the building, fixing it up ourselves and then moving on to the next.
My question is, does the below scenario seem like a good investment idea or should we keep looking?
Downpayment
$5775
Purchase price
$165,000
Annual taxes
$6000
Our monthly PITI payment is about $1,450
This is a 2 unit property; (1) 2 bedroom unit and (1) 1 bedroom unit. A local realtor said the 1 bedroom unit could easily rent for $800 and the 2 bedroom $1200.
Additionally, we are planning on getting the kitchens and bathrooms remodeled to hopefully get even more for the rent.
Does this sounds like a realistic and good strategy? All suggestions and input is appreciated!
-D