Rental Property Investor · Wakefield, MA · Member since 2015 · 30 posts · 21 votes
I'm currently deployed and looking to buy my first investment property when I return back to Mass. I've been studying up on investing and doing my research on locals cities and towns to invest in. I'm currently looking for a place to live but also a place then when i move out with generate some good cashflow. Ideally i'd like to find a triplex or quad that will cover my mortgage and expenses while I live there. I'm not too concerned about it being a nice town but I also don't want to be located in the slums lol The main point is to find a great cashflow property. Everyone knows the best way to learn this game is to ask those who have already succeeded. Any advice on areas to look?
It's very smart to hunt for a triplex or quad & live in one unit while you rent the others. Save your VA entitlement and find and a direct lender who can do the 203k...you'll get a better deal on a unit that needs some repairs and most rentals are maintained pretty poorly. I would try to find an agent in the market up there who is experienced with the 203 loan....most are not...although they will say they are just like most every real estate agent is an "experienced investor" agent....yeah right! I have a source for direct funding that I can share with you privately. He originates for a direct lender and has some pretty interesting programs.
There really isn't anything like the "best" cashflow city....cashflow is really about the property and what you do with it. I have a duplex that I have essentially turned into a 6-unit. This about triples the next cash flow while minimizing the risks of a bad tenant or costs of fix-up. We just had someone move out of the unit two days ago and the space immediately rerented for $550/mo with ZERO downtime and repainting a couple of walls. You could try our model on one of the units and stick to single tenant renters on the others...but for my money, if you are after cashflow and don't mind a few more headaches....I'd only do shared housing. Happy Investing!