Rental Property Investor · Tucson, AZ · Member since 2019 · 10 posts · 2 votes
This will be my first purchase, currently in the approval process. I would like this property to pay for itself while providing me a home for my family. Ive thought about fourplex, live in 1 rent the others. Or a home with many rooms and maybe a guest house for me to live and offer an assisted living home to rent by the room. In any situation i would like some strategy that is proven and replicable. I appreciate your input. Tucson, az.
Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
6y
Rental income does help @Mario Medina. Multi-family properties are even better because one can weather the vacancies. Your family must be of the same mind set because you will be choosing a property with future tenants in mind, rather than indulging for personal consumption. I found the book, 'Duplexes, Triplexes and Quads' by Larry Loftis very helpful showing how the rental income strategy plays out. Give it a read.
Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
6y
Rental income does help @Mario Medina. Multi-family properties are even better because one can weather the vacancies. Your family must be of the same mind set because you will be choosing a property with future tenants in mind, rather than indulging for personal consumption. I found the book, 'Duplexes, Triplexes and Quads' by Larry Loftis very helpful showing how the rental income strategy plays out. Give it a read.
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Mario Medina - You can get a 3.5% down FHA loan on a 4 unit and do as you said and live in one unit and rent out the other 3. This is normally what I suggest to people looking to get into the game. There's no other way (other than the VA loan) to buy a multi-family property with so little money down (unless you score a sweet owner finance deal). After one year you can use an FHA loan again and move into a SFH because the unit you're in now is too small for your family.
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Mario Medina - That is a deep topic my friend. You'll get a better understanding if you spend time reading through the forum and listening to the podcast.
I'm currently trying to buy my first home as well. I'm not sure how the Tucson market is but I wasn't able to find any properties qualifying for the FHA loan program for a 4-unit property in Los Angeles because of the Self Sufficiency qualification.
Now I'm looking at buying a single family home and buiding an ADU on it since there are many low downpayment, low interest loan products out there for this strategy.
Rental Property Investor · Tucson, AZ · Member since 2019 · 10 posts · 2 votes
6y
@Kevin Kim will you let me know what you end up doing?
It seems that flexibility is a major part of entering REI. Which in turn is paradigm, right? I hear people saying have a criteria and go in depth on a niche. But, then availability becomes an issue. Looking forward to the challenge though.