FIRST POST! listened to many podcasts, such great info, one bad thing is that I found out about the site after I bought my first REI.
SO was my first deal worth it, hopefully I am not leaving any major details out, I would like some feedback on my thought process and what I should be looking at more when evaluating a deal as I will be starting to look at the next opportunity shortly
3 unit multi family - buffalo, ny - 2 3 bd I rent out and I live in attic 1 bedroom loft
215k with 10 seller concessions for closing costs, did a fha first time home buyer 3.5 % down, with everything my pB was 209k.
rents on first 2 units; $2,000
expenses - user fee - $400
water sewer $200 quarterly
put in around $15k on my unit since I converted a studio into loft
not really cash flowing at this point but I figure once I move out I could get around 700 for my unit. I am looking to buy and hold and take out equity for next property
HOW BAD DID I DO!!!!????
Welcome to BP and you've already taken the first big step so you're a lot farther along that a lot of "investors".
You'll probably get a lot of different answers to your question and there's no right or wrong answer if your deal was "worth it" or if you made a mistake. True, just by the numbers it doesn't look like a great deal however what you have to also factor in is that, assuming you didn't leave anything major out, you're basically living rent-free and just paying for utilities. So while it technically isn't cash flowing, it's still covering most of your living expenses which is a great way to get started. Unless of course you're blowing all of the money you're saving by not paying rent.
Plus, you're paying down the mortgage and building equity.
You have now been a landlord for at least 2 years which means the banks will count 75% of the monthly income on your house as income for you which will help significantly reduce your D/I (debt to income) ratio if you look for financing for another property.
Personally, I think you made a decent move for your first investment. Could you have found something better, possibly. Could you have found something worse, definitely.
Best of luck!
thanks Eric for the input!
figured since this isn't exactly cashflowing that the deal wasn't great, but I am thinking once I move out, and it rents fully for around $2,700 itll be a better situation.
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