All Forum Posts by: Amir B.

Originally posted by @Bill S.:

@Amir B. another option to increase cash flow is to rent out the bedroom in the unit you will occupy. That helps with the cash flow.

Personally I would evaluate the deal compared to other deals in the area (your market). Someone in Ohio would consider a property and decide no deal where as someone in CA looks at it and says. Slam dunk, I can rent it and sell it for $100K more than I paid. I would take a deal with $100K of equity, so compare it to other properties in the area. If it's relatively good I would move forward. There will always be people here that will says that's no deal for a variety of reasons. You have to buy the deal that works for you. Figure out what works for you and then do the deal. 

 Hi Bill,

Thanks for replying. After re-anaylzing this deal, it a bad idea. Negative cash flow is always a bad idea. 

Matthew Botos Hi, Great question. I am trying to buy my first property and have a renter pay down the mortgage. No, way to live for free with a duplex and 3.5% down payment. I live in a very competitive market. After one year I would move out and look to acquire another property.

Originally posted by @Daria B.:

@Ken Badziak according to bankrate.com and some other sites I looked up, the PMI is required to be removed by the servicer when the mortgage drops below 78%.

 Hi Daria,

I have been asking around about not having PMI and most say 20%.

Originally posted by @Jim Adrian:

Zillow seems to think you can rent this for $2100 but I don't know the area.  I will echo what @Ken Badziak said as well.  The house looks clean.  This becomes a better deal once you rent both units out.  Research your numbers some more.  You may be better off going conventional vs fha.  Make a list of known repairs and or items to be replaced in the near future to understand how much reserve capital you will need.

 Hi Jim,

Conventional down payment (20%) would be $87,000 plus closing cost. I am not going to do that. Too much at risk. 

Hello BP Community,

I found a deal near my work. It's a two bed/two bath duplex. Asking is $435,00. 

• Lot: 8,276 sqft
• Multi Family
• Built in 1950
• Price/sq ft: $194

Both units are vacant. So, no tenants in place. I am interested in house hacking, so I would live in one. I am using a FHA loan and according to the agent I can command rent around $1350 per month.

Here is the link to the property.

http://www.realtor.com/realestateandhomes-detail/4...

It's really a tough market for MFH's in this area. What do you guys think? Good investment? Please ask any questions.

Thank you. 

Hi Everyone in the BP Community,

I am looking to purchase a duplex as my first property. I am looking to house hack. Unfortunately, I live in California and no way of living for free. The plan is to have the tenant pay down the monthly mortgage payment. 

My price point is $400,000. I am planning on using a FHA loan using 3.5% down payment.

I am looking in Sacramento county. 

My question is would someone buy in a more desired area or cheaper? One duplex is $290,000 and the other is $410,000.

Please advise.

Thank you. 

Originally posted by @Charlie Fitzgerald:

Your loan amount does not "increase"...the loan amount is the loan amount.  Your interest accrues on the outstanding balance.  I just showed you the very simple math that indicates that a LOWER loan amount at a HIGHER interest rate, costs you more money than a HIGHER loan amount at a LOWER interest rate.  The lender of course wants you to tae the higher rate...THEY make more money when you do.  I would also switch lenders...this one is disingenuous and does not have YOUR best interests at heart.

 Thank you Charlie. That makes sense. The original thought was to have less come out of my pocket.

Do you have any lenders in mind? I am using a broker called Magnus Capital/Direct in Fountain Valley, CA.

Charlie Fitzgerald Thank you for writing back. How about getting the lower interest rate, any catch? I think the lender mentioned the loan amount would increase.

Hello BP Community,

I am shopping around for a duplex and wanted some input on selecting the best rate for me.

I'm going the FHA route. I have gotten an interest rate offer at 2.875% no credit back, 3.100% $2,000 back, and 3.25% with $7,500 credit back.

Of Course the lower interest rate increases my loan amount and monthly payments.

Not sure what others are doing in my situation. My goal is to have less come out of my pocket.

Thank you. 

Brian Corbett Thank you. I will let it pass. I am a newbie and I think the first deal is the most important one for a new investor.