Rental Property Investor · NJ · Member since 2019 · 5 posts · 0 votes
Hello everyone, my name is josh and i am currently under contract for my first property! it is a 3 family house with total of 8 bedrooms and 4 baths. Purchase price is 340,000 with 4,000 annual taxes. Seller is covering my closing cost! As of right now all 3 units are bringing in 3900 a month 1350,1350 and 1200. I am pretty much paying retail for this property but i will be getting good profit monthly as i plan to live in the basement! Pretty much want to utilize the BRRRR with out the RENOVATE part. Now i want to invest after this property but i am afraid i am not going to build enough equity to cash out after a year (fha rules) to invest in another property. Now i plan on saving all my profit unless i have to fix anything along the way but for the most part save everything! My question is how can i avoid paying 20-25% on my next property that will be considered an investment property ? And i was thinking of going HML but i doubt they'll give me 10% being i have no experience flipping a property only owning one.. If anyone can give me some pointers on where to go next after my 1yr of fha is over ?
@Joshua Lopez spend some time building relationships with hard money lenders, getting to know their products, and telling them what you’re looking for.
In the meantime, familiarize yourself with the area you’ll be investing in, understand what can be done to improve properties in the area, and introduce yourself to other property owners. You never know who may be looking to make an exit from being a landlord, and being another local landlord often will give you credibility. Just because you aren’t planning another purchase using conventional financing does not mean you have to wait.
Congrats on the purchase! Sounds like you found a great deal.