Possible first purchase

2 Replies

Hey everyone, I really appreciate all the great info and advice on here! I'm a new investor wanting to get started in real estate in Bloomington/Normal, IL. I am looking at a duplex with the idea to create a "house hacking" move that Brandon talks about. The duplex was listed at $250k and is valued by the county at $260k range. I had an offer accepted at $220k. I was planning on using an FHA loan to put very little money down. The other side of the duplex would rent for around $1200/month, my monthly loan payment would be $1,050. taxes are $7100/year, insurance is $1300/year. Rental market is pretty good in the area. Worthy of a first investment to get started?

@Ryan Crowley

It all depends on your local market. 

I assume that $1050 loan payment doesn't include tax and insurance? How about pmi?  WIth taxes and insurance your payment should be around $1850/month

Even if you do not take in consideration the market, I do not see this going too well. You're rental unit will not cover all expenses and you will have to pay out of pocket every month at least $550 which is not including your reserve and cap.ex. 

Great points. I will probably be looking for a roommate to cover rest of the costs. Total would be around $1600/month so if I can cover that, it would help. Otherwise, you're right, I would be paying $400-$500/month myself

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here