All Forum Posts by: Ben Dao

I am a big believer in buying a multi-family for your first rental. If you can live in that great . If the rehab is too much , I think you should ask for the discount. Since it is an estate sale , you are right and should not make them fix anything. I would somehow figure out how to rehab it even if slowly. It sounds like the neighborhood is good so it might be worth the upfront work.

I would question why the seller is selling the building with tenants in place. Sometimes it is because the tenants are a problem. I bought one with bad tenants. I had to evict one so just and the other was selling drugs. So just keep that in mind and that is always a risk. Maybe the more motivated, the more of a discount you can ask.

I am a bit more conservative. Most of my properties are paid off. I can only buy 2-3 per year. When I have a vacancy I am not as stressed because I am not making a mortgage payment. I can be more strict on my tenant screening also. When a mortgage lurking, I feel more pressured to rent my units out quickly. And that's when I can make bad decisions. I know from experience.

Most conventional loans will let you buy up to a 4- unit property. You can use that for a down payment. If you can live in one unit that is also a good option. But either way the cash flow will hopefully be there to offset your current mortgage and pay the debt service. I am a believer in getting a multi-family for your first rental.

I think doing a DBA will be fine. I do think it is better than to do everything in your name.

I believe doing a 2-4 unit is a great way to start in rentals. It gives you a few differences rents a month so it feels more like a business. Also if there is a vacancy, you are more likely to positive cash flow. The management is under one roof. You have more eyes and ears on the ground. It will be a bit more maintenance than Single Family but I don't think too overwhelming. I think it's worth it if you can handle it. What I did was buy 4 - plexes until the management got too much . Then I pivoted (got that from BP) into single family.

So glad you kept going and now you are really cash flowing! Super Cool! Thanks for sharing

I just keep the deposit and have them pay 1-2 months rent to offset the vacancy period.

I would probably do 3 year of rent credits if you go rent-to-own. But it sounds like you might like to do an owner finance. The title goes the buyer and you become the mortgage with a Lien attached to the property. So after the pay the 10 years or so , you release the Lien and they would own it free and clear.

I have wholesaled on HUD before. The thing is you have to put $500-$1000 down and if you do not execute you lose that earnest money . So have a buyer lined up first if possible. You also have to do a double close instead of an assignment. Just some things to think about as far as wholesaling through HUD.