All Forum Posts by: Account Closed

No way you can do all that for 6000. Also probably overkill. Did the engineer design this? 

PS. Don’t let the term sellers market smack you down. 

I bought the fourplex in August, off the MLS, offered within an hour or so of it hitting the market. Not much less than asking price. The numbers worked as is and the rents are $200 under market. It will cash flow $250 a door after getting them to market rents.

I am in a pretty hot market. 

I've been through your exact situation. I was able to talk my wife into a fourplex with FHA loan. It's been tight with 2 little kids but a hell of a great decision so far.

If the ultimate goal is investing and you agree on that then buying with an fha Lon a multi family (big as possible) is a must in my opinion.  It’s a shortcut. 

Otherwise if she won’t then buy a house provided it meets the following criteria:

THE NUMBERS MAKE SENSE AS A RENTAL!

You don’t have to go crazy with expenses, like property management and such but at least account for maintenance, capex, taxes, insurance. You don’t have to cash flow but at least break even and spend as little out of pocket as possible. 

I just sold the first house I ever bought. I didn’t know any better and didn’t even know that real estate investing was a thing when I bought it ten years ago. It was a source of high stress for me for years because I moved out and it got trashed by tenants twice.

If we didn’t do a fourplex with an FhA loan then we wouldn’t have been able to buy 14 units in the past 9 months. 

It's really VERY simple. Learn how to analyze a multi-family. Then go find one that meets your criteria and buy it with as little out of pocket as possible. Repeat. Or Go find the biggest one you can and do the same.

Keep sufficient reserves. With that money, you can probably buy a 500K to 1,000,000 in MF. In the right market, this will get you 15-20 units. Save up do it again.

Just because you bought rental properties does not mean you are financially smart. They might face the same issues as anyone else:

Death in family

Medical bills

Fixed income

Poor money management

Hate the government

BUT, you are asking the wrong people. Contact these owners and ask them, then see if you can help in a way that is beneficial for you and them.

It’s a good question. I am fairly new to this so take anything I say with a grain of salt. I  just bought a MF in a city that I believe will grow (I did not buy for appreciation though). I drove around and looked for/did the following things:

Increase in jobs (lower unemployment)

Companies moving in

Commercial real estate being built

Hotels being built

Property values increasing

Change in govt leadership

Areas near grew 

Talk to people in the community 

So they have 2 loans? One for the building purchase and another one to a private lender for back tax? Or they own the building outright?

Which lender do you want to get out of the way? What position lien holder are they? 

Nm

Check your state law but probably not. Unless maybe a major safety issue. Most people just jack up the rent or give them cash for keys. 

I had/still am looking at small parks to buy. The numbers just never made sense on older parks (value add). The mobile home moving cost is the devil in my opinion. Maybe find an old mobile home moving truck and buy that