Investor · Riverside, CA · Member since 2015 · 185 posts · 27 votes
Hey BP community! I just recently came up with a first goal for my real estate endeavors. I'm thinking of making downpayment on a small 2-4 unit (duplex, triplex, quad) at Oklahoma City, getting financing from an FHA loan, and living in one of the units with a close friend of mine while renting out the other units to cover the mortgage costs and generate a bit of positive cashflow. Does this sound like a feasible and effective plan? Thanks for the help!
Yes, great plan. I don't know OKC but keep in mind that, in general, you'll see the greatest return from lower end properties vs. higher end properties. You have to make the call on what kind of neighborhood you're willing to live in and if the extra return is worth it to you. If you have some numbers on the different options, we can help you better.
Great but that should not be your first goal! Goal setting should start prior to purchase and continue afterword. The y should be written down, analyzed and quantified at least weekly. What is your exist strategy with the property? Budget? etc.
Do you have a partnership arrangement with your buddy? If they are participating in the deal in any way other than rent- discuss it and write it down. Without it, it is a good way to loose a friendship.