Hello everyone! My name is Allen and I am thrilled to be part of this community. I love reading the posts and articles every day. Being new to this world, I am looking for education and inspiration. Been to the big guru meetings with friends in the past and always felt like I could learn everything they were talking about without forking out thousands. =)  Glad this community feels the same!

Where I am now - My wife and I are looking to purchase our second REI, ideally a multi-family unit. We live in Utah, and the rental market is doing really well right now. Problem is, our first deal was so good we are getting stuck looking for a similar, over-the-moon kind of situation. And all the REIs I am seeing are going for about 110% value, mostly cash offers. All the big guys are buying up as much as they can. Trying to find my niche.

Our first home and investment is a house hack. It is 2 homes on 1 property. Note I said ‘homes’ on the same .27 acre plot. House 1, the rental, has 1550 sqft. House 2, where we live, has just under 1600 sqft. Here are some of the numbers:

Listed @ $165,000. My estimation showed it should have been about $200,000.

On the day is came down to $155,000 we put in an offer for $150,000 with $5,000 for closing

21% down 

Mortgage, Tax, and Ins = $840/month

Estimated expenses = $125/month 

Front house rent = $1075/month

Cash Flow w/only 1 unit rented = $110/month

I have done all the remodeling myself in both houses. Added a patio and fire pit in the backyard and additional landscaping. Had A/C installed this year in the back unit, where we live. Going through a refi right now to have the new valuation on the book so we can do a HELOC for the next property. That will save an additional $125/month, which we can put back into paying off the HELOC. Side-by-side duplex (~1500 sqft each) right behind us just went for $280,000 cash three weeks ago, and a single-family 5 houses down went for $159,000 (960 sqft) so we should have plenty of equity in our property with the refi.

We can rent our current house, based on the market and all its upgrades, for $1300/month. Even while living in the unit, after annual expenses we are still cash flowing $100+/month on the rental. Moving out will make the property cash flow about $1200/month between the two, after planned expenses. Not too bad. We plan on that paying for the mortgage on our next property, and so on.

But this is our problem. I cannot find this kind of deal again. And I am stuck in this mindset, looking at deals that would barely cash flow, thinking of the amazing deal we fell into. Most of the multi-family properties I am seeing need a minimum $10k in remodels. My agent confirmed he is seeing most REIs selling for 110% of the value, with a lot of investors banking on appreciation. And appreciation is happening, but I am nervous to pay too much for a property that could barely cover expenses.

Anyone been paralyzed after your dream deal? What did you do? Any suggestions?

PS – Moving is not really an option at the moment. We certainly want to get out and start renting our side. However, my wife and I are very involved in our church, and I am actually over our congregation at the moment. If I moved, I would be released from my calling. We do not feel it is time for that yet. And because of our blessed situation, we have been able to help a lot of people in our area. Charity and service are important to us and we hope this continues in our investing future.

Thanks for all your comments and suggestions.