All Forum Posts by: Andrew Christian

Here's more specific numbers I got back but these are based on a higher percentage down. I would still like to stick to the 25% if possible.

I know I'm giving some rough numbers here but wanted to get some opinions on if this deal is worth it or a good deal (generally) numbers-wise:

Purchase Price: $529,000

Down Payment: 25% = 132,250

2 Units: 4 bed/3 bath and 2 and 3 bed/2 bath

Current rents: 4 bed = 2,100, 3 bed = 1,700 for total of $3,800 rented and under lease for a year. Rents are below market pro forma has rents at $100-200 more per unit.

Mortgage, taxes, insurance, and other costs roughly $3000/month

Self managed. 

I know that's bare bones but I just wanted initial thoughts. Thanks.

Thanks to everyone for your responses.  This has been incredibly helpful.  I'm sure I'll be PMing some of you and talking more.  Again, thanks for your comments I truly appreciate them.

Thanks @Robert Musallam. I think I am leaning towards $ per door rather than the 2% rule which seems hard to come by, especially on MLS. 5 units sounds difficult in these markets...I have found some distressed 4 units but I will definitely always keep my eyes open for that since it changes it to commercial. I assume for commercial it is still 20% down in most cases?

@Account Closed Exactly.  I'd rather have it be something I can be close to and know the actual condition, situation, etc.

Hi there, I am a CA bay area resident with about 60k of capital looking to break into the real estate market.  I have read a lot on the forums and listened to a lot of podcasts and am leaning towards investing in multifamily areas in CA outside of the bay area (price is the big reason) hopefully within driving distance.

I am looking at places like Merced and other college towns with a clear growth potential and lower home prices to get my feet wet.  However, I also come across other possible avenues such as Sacramento (and areas north of the American River) which yield higher rents and good deals, but a more unstable market for consistent rent and home prices.  

I am just fishing for opinions here and ideas...BUT...if you were in my position and had 60k AND lived in the bay area, I'm curious what your strategy would be and why.  Thanks.

Hi there, investor here looking for a real estate agent who has experience with multifamily properties in Merced.  If you have any recommendations of know of anyone, I am all ears.  Thanks!

Hi Erica,

I think Laura is right.  Talk to professionals first.  There are many real estate agents who have experience in doing exactly what you're talking about which is simply a buy and hold strategy with cash flow.  

Depending on your market the 28k could be enough, it really depends on if you're invest in an expensive market locally or look outside to other markets that offer good cash flow and ROI. Finding a good property is not too difficult if you follow a few rules of thumb such as doing your homework on what rents are (especially in certain neighborhoods that may be more desirable or rentable), finding a property that is undervalued or one that you could easily add value to, and getting the numbers right with the costs of the mortgage, insurance, property management, etc.

Hey there BP community,

I have been exploring the BP forms, blog posts, and podcasts for a while now and hoping to get started with my own journey into the world of real estate investing.

Specifically, I'm hoping to invest in multi-family units slightly outside of my area since it is cost-prohibitive (thinking CA central valley area such as Modesto, Merced, etc.).  

Glad to be here and always looking for any advice/good info on my journey.  Thanks!

I think the college town route is a good way to go.  Yes, turnover is high, but the guarantee of a stream of possible tenants is always available.  Plus, most students will need a co-signer (a.k.a. parents) who are on the hook for any damages or rent.