All Forum Posts by: Christian Austin

Thanks for the reply Ned. I am using comparable property sale prices as a metric to determine what I should pay for a property. Could you recommend any other method to determine market value of the property. The one problem I find with comparables is their dependence on the time of year: the spring market seems to demand higher prices.

Hello all at biggerpockets. This is my first post, besides an introduction. I'm looking forward to hearing feedback from the experienced.

I am currently looking to make my first real estate purchase. I plan on buying a multifamily property as a live-in landlord. I have many questions, but the most pressing question I have is what would be a smart investment strategy: I am considering two options. Purchase of a two family with future expansion possibilities in an attic or basement (unfortunately I cannot legally build another apartment in these spaces), or purchase a three family.

The pros of the two family are that the inventory is higher than the three family (but still low), and the cost will be lower than a three family; furthermore, the very low three family inventory drives up bidding and the risk of overpaying. The con of the two family is less cash-flow, from only one rent, although this could be improved with expansion.

Purchasing a two family in good structural shape, but possibly outdated, will be tight using my personal savings to cover the 20% down-payment and closing costs. I will not be able to purchase a three family in similar condition without a family loan to help cover the 20% down and closing. So in the two family case I will be financially extended to the limit, and in the second case, I'll be extended beyond.

As a rough estimate, the three family cash flow should cover my mortgage and taxes, but in addition, I would have to pay back a family loan and it might be tight to have a cash reserve. The two family cash flow will not fully cover my full mortgage, but may come close after expanding. Plus of course there will be expansion costs, which I could personally finance after regenerating some savings with time.

What investment would you make in my position? I'm open to other ideas as well.

Thanks.

I now have a face.

Thank you all for the warm welcome. I'm looking forward to interacting with the community.

Hello, my name is Christian Austin and I'm new to the BiggerPockets site. I live in the Boston area, and am looking to become a live-in landlord, making my first investment a multi-family property. This has turned out to be a more difficult processes than I originally thought it would be. Inventory is low, and houses go fast.

I found BiggerPocket when searching for podcasts on real estate investing. I've listened to several podcasts and have been reading many posts, including the ultimate beginner's guide. I'm really impressed by the wealth of information and knowledgeable people on this site.