New member Centeral/SE CT

[Mark Simmons]

Hi there! I recently signed up. My wife and I are looking to get out of our apartment and into a house within about a year. I've expressed my interest in getting a multi family house, or renting a room above a garage etc.

We're currently living in Southeast CT, but are looking to move a bit closer towards Hartford, but not too close. Colchester is our sweet spot. 

I've had the thought of renting space on the back burner for a long time, but I haven't done anything with it yet. I'm a licensed electrician, not a contractor (yet?). But I'm still handy outside of the trade.

We are both frustrated with the apartment life and I'm looking for the best way to get out of it and get the most out of this financially.

[David Wolber]

@Jaysen Medhurst oh stop, give him a break, he's new!  hahahaha

Hi @Mark Simmons!  Welcome to BP!  It's an awesome resource.  And Jay is a great dude.

Getting out of the apartment life is a fantastic goal and not usually the easiest.  Obviously everyone here will definitely tell you to move into a multi and live rent free and all that, but that might not be your cup of tea.  A single family home is just as nice of a first time investment, but you must look at it AS an investment.  Think of it as an investment when you buy it.  Run the numbers and make sure you could rent it out and cash flow.  Most people who convert their first residence into an investment property don't truly cashflow because they never bought it as an investment.  Just covering the mortgage payment isn't evnough, ensure you add a PM fee, even if you plan on managing it yourself, make sure you pay yourself to do just that.  Then, down the road, should you decide you want to have it professionally managed, the investment still works.

The awesome thing about moving into your investment is the down payment requirements are easier. 5% down for most FHA type loan products is all you need, but you will have to pay PMI. This can still work, i have a duplex in New London that I lived in for a year and then moved out. We pay PMI on the mortgage but she still cash flows great, and we don't have the extra $40k tied up in the property.

I also have a few questions for you about your electrician work and handiness so i'm going to shoot you a PM. I hope that is OK! :)

-Dave