My first deal

9 Replies

So I need everyone's input please please and please :) 

I am going to do my first deal this fall and I am trying to do everything in my power to get as much information before pulling the trigger. I am planning to live in multi-family home. My goal is a 4 plex live in 1 rent the other 3. my price range is around 250k I plan on doing an FHA loan and was told that dp + closing costs would be around 10k. I am a licensed Realtor and was plan on using my commission as part of the dp costs. I am looking for something with existing tenants, but had a couple questions

1. While living in the home do you use a PM company or do everything yourself?

2. Can I keep tell existing tenants I am just renting or do I need to inform I am the landlord.

3. Would you focus on cap rates or cash flow. 

4.  Would you sacrifice more $$ for better area and in my eyes better quality tenants 

Please and advice from anyone is great I been doing many readings for sometime, but I am ready to do this :) 

manage it yourself.

Keep the good tenants.

If I am going to live in it, get an area that you like.

Very interested in your progress keep us updated.

Very interested in your progress keep us updated.

@Amanda Keller I will for sure! 

1. Absolutely, I would manage myself. You live right there why would you pay someone else 10% to collect the money? 

2. What would be your reasoning for not telling them you are the landlord? Why would tell them you are renting? There is no reason to hide it. 

3. I would look at the cash flow after the mortgage is paid. Essentially you should be living there for free.

4. If I was living in the house as well. The nicer the area the better. 

Jerry Padilla, Lender in NY (#NMLS 1084877)
585-204-6923

Question 4   You do not need to worry about cap rate as you need a multi with at least 5 units before cap rate is used in the price anything under you will use your regular comps but you should now where your at 

1. Your already living there, dont hire someone else to do the work and cut in your profits. You will learn more this way also.

2. I would tell them.

3. Cap Rate should be used to determine the value of the property. After all this is an investment

4. I would personally rather live somewhere nicer and have slightly less cash flow. Thats just me though

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