Property Manager · Montgomery County · Member since 2014 · 2 posts · 0 votes
My Fiancé and I are in the process of purchasing our first home in the (Montgomery County,PA/Philadelphia) area. However, we to want invest and get into flipping. We both have property management experience as he is a current regional maintenance manger for a multifamily management company as his 9-5. I do staffing for the multifamily industry for my 9-5 with leasing and property management experience. Our home purchase is based the school district as we have a 10 year old. Are we shooting ourselves in the foot if we get into a 350,000-400,000 mortgage? The area really matters because we're raising a family. We are renting from family (need and ready to get our own place), great credit, approved for conventional loan, lost 2 offers on home (market is competitive). If we could purchase a multifamily property with a few rental properties as well as flip properies as a couple applying our experience we acquired over the years that would be our dream. Any advice would be appreciated!!
Architect · Memphis, TN · Member since 2020 · 259 posts · 144 votes
5y
This comes down to personal opinions. While it may be easy for one to point you in a direction everyone has a different level of comfortability. Not everyone has kids and or knows what it takes to have a precious 10 year old that their raising and want the absolute best for. All to say, I am sure you will get differences of options here. But the choice is yours.
I was in a similar situation coming out of college. My wife and I sacrificed the bigger price point home so that we could afford multiple properties from the start, pay them all off quickly, and let them all generate passive income. Now that came with its challenges but I knew challenges were meant to be met, addressed, and overcame. Fast forward... we bought a fixer upper coming out of college in an area some thought was crazy. Currently those same people are now looking at the numbers and saying it was one of the best decisions we made. Our kids are in a great school that is not in their district but they were accepted to this great school. So we checked off three great concerns. 1. A low mortgage 2. The kids being at a great school, that we deemed fit. 3. Cashflow, Cashflow!
So remember, while you guys are searching for the right school do not let it make you loose focus. . . there might be an optional, private, and or performing arts school in the area that accepts families all around (with a great curriculum and affordable if cost is a factor). I am not sure if I was helpful at all but I just wanted to wish you all nothing but the best. Step out there and crush it!
I'm doing the same thing currently with smaller 2-3 bedroom single family homes. I encourage everyone to think outside the box and visualize where you can make sacrifices to achieve a REI goals. Purchasing a $400K property at or near market value limits the strategy and rental potential.
Market research and making connects is everything if you ask me. Hyper narrow down on neighborhoods and look for deals that fit most of your needs.