I found a nice duplex with small issues (water heater needs replacing) other then that it's pretty much ready to rent. I'm paying by conventional loan with very little money down ($1000). The Duplex is $105,000 with a single car garage and additional parking. 2 bed and 1 bath first unit. 1 bed 1 bath with potential bedroom second unit. New roofing and renovated bathroom in second unit. My loan requires me to be own occupant so I'm planning on living in the smaller unit since I'm single and renting out the bigger unit for a family (bigger unit has it's own dinning space hardwood floor throughout the house). My question is since I did the analysis how do I know I'm doing it correct. I've watch the video on it and read the blogs about rent analysis. But I still feel nervous. This blog here about how to own your first duplex shows you how a potential looking duplex once analyzed can be a disaster. http://www.biggerpockets.com/renewsblog/2014/07/19... . I just wish I had help knowing I'm analyzing my potential correctly. I can think I'm doing it right when really I'm missing an important issue.
Thanks for your help in advance.
Hi there is a forum here on BP about analyzing deals someone can walk you through it. Go to forums and click on analyze deals. Hope rhis helps
Hi @John S.
Thank you so much that is most helpful information.
Just by you taking action and asking questions is a great start, keep watching the webcasts and learning everything you can. You'll do great!!!
Big step, congrats! Let us know how it turns out.
Thanks @Corey Melkonian your words of encouragement means a lot to me.
Thanks @Zachary C. I'll update you on my progress.
You're welcome Munira, stick with what you know. It'll shortly come to you. I'm on the new construction end but I started as an owner occupied duplex as well. Let me know what happens and I wish you well.
A journey of 1000 miles begins with the first step and you are well on your way. I feel this is an excellent way to get into real estate. Have the tenant pay your mortgage and you possibly live rent free, or at least a reduced rate. Once the bug hits you, you'll be ready to sell and buy a fourplex and move it
All the best
Let me know how it works out!
Honestly I don't think you can ever be 100% sure you analyzed it right, or everyone would do it and there would be no risk. Now what you want to do is your best estimate and give yourself some room if something bad or unexpected happens.