All Forum Posts by: Alex Nassar

Hi, I am new to RE Investing and looking to buy my first single family or multifamily property. I need to get financing!!

Where do you guys suggest I start? Speaking with a mortgage broker?

Looking up lenders near me and go direct to them? Credit Unions?

Would prefer to put 15-20% down. Is this possible and any downsides other than having a higher mortgage payment?

Thanks!

Hi Dylan - I am also new to RE investing but have a lot of background in building a solid financial base. I am 29 years old and I absolutely do not regret not getting in RE right out of college. I realize some people on here may disagree with me but I feel like it is extremely important to build a solid financial base through Index ETFs and savings in high yield savings account. The most lucrative asset to you right now is time. Pile as much money into index ETFs and savings as possible right now so you have money working for you in something that has little barrier to entry. I am assuming you are 20 years old right now, your dollars in the market have a 80x multiple in future value terms right now. Meaning 10k turns into 800k by retirement - that is truly powerful stuff.

Once you have a good portion in the markets and a healthy savings account then dip your toes into RE! Time is on your side my friend no need to rush the process and get levered adding tons of risk at such a young age with little income. 

Best of luck! Go out there and kill it!

Quote from @Alecia Loveless:

@Alex Nassar I have 1 single family and 6 multi families currently.

The single family was my first investment and appreciated wildly during the pandemic. Its value is up 300% but the rent has stayed the same at $1600/month. I’ve had two sets of tenants that have both stayed 2 years with the current tenants probably planning to stay longer than that. I initially paid cash for this property and it cash flowed about $900/month. However I ended up refinancing it because I wanted to buy something else and now it cash flows about $350/month which is close to my average/door.

I have 24 other units in various sizes from a duplex which I house hack to an 8 unit. I prefer the larger buildings because they provide more income per property. If one unit is vacant there is at least one other unit to help support the mortgage and bills until I can get it rented again.

Some people say multi families are harder to sell than single family houses because the buyer pool isn’t as big but I keep my properties in tip top condition and I just don’t see that as being an issue.

If I were you I'd look to buy a 3-4 unit building for your first property. It is still considered residential if you choose to go that route, or you can go DSCR loan. Either way you will use the income from the property to help qualify for the mortgage. And with 3-4 rents it will help you get to the point you want to be at of being closer to breaking even.

You may need to put a little more of a down payment to get a nice building to break even but if you have enough income this may not matter as much to you. Obviously you will know if this makes sense or not. I’m talking like 30% not like 50%.

Greatly appreciate all the info! Super helpful thank you for taking the time for writing.

Regarding your single family that appreciated 300% but rent stayed the same, I kind of feel like rents have not kept up with home prices. In Charlotte it seems like many people are opting to rent over buy due to better deals. 

Hi all, I am new to RE investing and am currently in the research stage trying to develop a strategy to pursue. I have a healthy income and have built a solid financial base for my age. I am looking to purchase a rental within the next year and am torn between SINGLE FAMILY OR MULTIFAMILY. If you are an experienced investor can you please provide your personal thoughts and experiences?  Thanks, looking forward to reading them.

If it helps, I am looking for Class A or Class B properties as I don't necessarily need the cashflow right now and am okay waiting 3+ years. Ideally I could breakeven YoY for the first few years and not float too many costs so I can continue saving and investing.