Just got offered a full time position after graduation!
Hello BiggerPockets,
I am excited to say I got offered a full time position in my field of study after graduation! This now means I can start checking the market for my first investment! I am from Cleveland and looking to invest somewhere around here. My goal is to find a multi family or single family that works well with an FHA loan. I plan to live there for the year than hopefully buy my actual house (or possibly rinse and repeat). I can't wait to start investing at such a young age (22)! I want to thank you guys in advance for all of my future questions.
Thanks,
Dave
Most Popular Reply
@Account Closed , it's all mindset. When your tenant in the single family lives, you have to cover 100% of the mortgage and all expenses until you find another tenant. In a building, most of the time you make really good cash flow, so if one tenant leaves unexpectedly or doesn't pay the rent, the other tenants are still covering most of my expenses and mortgage, I am just not getting cash flow for that month or those months.
I usually can control a higher purchase price, which is one of my goals, to get as many mortgages as possible with low down-payment, locked on 30 year mortgages at low interest rates. It helps me create more wealth.
A single family might cost 200K, a building 400K. I prefer to have the bank loan me 400K at 3.5% down, and have the tenants pay off 400K.
Let me ask you think: 30 years from now, or 23 years from now (if you add one extra mortgage payment a year, every year to your payments, your property will be payed off in 23 years), would you prefer to own 200K or 400K property paid off and would you prefer to get a $2000 cash flow (rent on single family home after mtg paid off) or $5000 cash flow?
How lofty are your goals?
Regarding the tenants, as long as you screen them well, you'll have a minimum of issues with them. And if you have questions how to screen them, I can help you with that!