First Time Investment in Multi-Family Real Estate

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First Time Investment in Multi-Family Real Estate

Walter Edington
Sudbury, Ontario · Member since 2018 · 8 posts · 0 votes

Hi all, 

I'm new to this website/forum. I recently(2weeks) began learning about real estate investing, I've been listening to the Biggerpockets podcasts and reading their posts. Anyways, I'm posting this to ask for guidance/opinions. I am currently a business student and I have always been kind of interested in real estate investing, but have always been told that it's to risky and therefore just began to realize that the people that think it's to risky are also people that don't own ANY real estate(with the exception of their own home) so.... I want to post this to hopefully learn more about this topic, that maybe the podcasts and pages don't cover entirely. My background is, I'm 20 I live in Ontario Canada, and I have the ability to save roughly $10,000/year as a student. My main question is should I begin investing as soon as possible, or wait and purchase more than one rental property to begin. I would like to make this my full-time job eventually, from what I've read that's a very attainable goal as many have already done.

Sorry if this post is a little unclear I'm new to this,

Thanks

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  • Andrew Kerr
    Rental Property Investor · Everywhere, USA · Member since 2012 · 689 posts · 525 votes
    8y

    @Walter Edington - the advice you will get will vary based on goals and preference. If I was back in your place, I would save like crazy till you have an income, then buy a small multi-family property. Live in one unit (and get roomates), then rent the other units. This will let you get experience with owning property, managing tenants, along with keeping your living costs dirt cheap. Then save like crazy till you can buy another deal.

    1Reply
  • Matt Geerts
    Investor · St. Thomas, Ontario · Member since 2015 · 692 posts · 312 votes
    8y

    @Walter Edington welcome to the forums. You don't have any personal info in your profile - it really helps around here.

    Where are you located? Getting into a first home as an investment is far more attainable than most people think. If you can save 10k/yr, you can buy a duplex with 5% down very easily depending on where you live. You could do as Andrew suggested above. You don't even need a duplex for that - just buy a house and get roommates (law is in your favor with roommates anyway).

    Step one (after you've decided WHY you want to do it and you've decided that you DO want to do it) is to learn to analyze deals. It can look complicated, but you're best to find a simple formula just to start with. 

    Rent - taxes - insurance - utilities - maintenance.

    That's a good place to start. Do one and post the results here. It will probably be terrible, but that's 99% of them.

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  • Walter Edington
    OP
    Sudbury, Ontario · Member since 2018 · 8 posts · 0 votes
    8y

    Thanks for the advice my location is in Ontario, Canada so I wasn't able to put in a state or zip code.  I will try a formula and post it here.

    Thanks!

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  • Walter Edington
    OP
    Sudbury, Ontario · Member since 2018 · 8 posts · 0 votes
    8y

    This rental property is a 4-unit property, in a C class neighbourhood. There is 2-1 Bedrooms, and 2-2Bedrooms. The rent and utilities is unknown so I estimated.

    Rent = 900x2

                1250x2

    Mortgage = 2000

    Tax = 3318

    Utilities = 9000

    Maintenance = 5160 (%10 of annual rent)

    Insurance = 4000

    Net Income = $6122 ($510/month)

    The insurance number and the utilities and rent are all estimated based off of my current house. This is just a rough analysis. Thanks!

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