Newbie from Southern Oregon Looking for some advice
Hi everyone! My name is Evan Tucker and I am an Insurance Agent from Medford, Oregon. I have been following BiggerPockets for over 3 years now and I am finally getting around to introducing myself on here. My ultimate goal is to invest in apartment complexes and be able to separate myself from my day-job by the time I am 30 (I am 23 right now).
I am currently looking at getting my feet wet by starting out with a 4-plex in a neighboring town of mine that has been recently updated but I am in need of advice on whether I should pull the trigger or not. Here is a summary of the deal:
Purchase Price: $500k
Down Payment (using FHA): 3.5% - $17,500
Property Taxes: $4,500
Insurance: $900
Total monthly payment (PITI + PMI) = $3,325/month
The units are currently being rented out at $1,000/month, so essentially if I live in one of the units my payment each month would be ~$325, not including utilities of course. Do you guys think that this deal would make sense or should I wait for something that I could cash flow on even with occupying part of the residence?
There aren't a ton of multi-family properties in my area and if there are, they are usually in sketchy parts of town. I would prefer starting small before jumping into large apartment complexes just so I can get the hang of things.
Thanks in advance!
- Evan