All Forum Posts by: Hugo Flores

I own a duplex which I house hack. This is was my first home purchase. I want to keep growing. Please please advise!!
The duplex was purchased newly built. Therefore, everything is pretty new and should hold with maintenance. I financed with FHA so PMI is also eating a bit of the profits. 

My question is since I did not buy a fixer upper nor built equity through renovations, what is my best way to go to grow my portfolio? Do I save money and do it all over. Do I pay off more to gain equity and refinance? Etc etc.

What would you do or recommend me do for my next purchase. I have a feeling I cant do much to take money out of this to use again.  
Also, property is in a very solicited area, which I am hoping for it to appraise and grow me equity. I know its something you cannot foresee but location and vacancy will not be an issue. 

All in it was 14k. I forgot to add to chart. 

Greetings all,

I am a new investor. I purchased a duplex back in Nov 2020. I live on one side and rent out the other. It has been great with very good tenants. As I am looking to the future, I want to build a portfolio and need some insight from some of you!

Price: $175k 

Rent: $1000 each side

Costs: $1500 

Profit: $500 

The deal here is that I purchased some new built duplex. This was a great find I will never worry about bad tenants because of the location and for the price the duplex has a lot of good things. 

How can I go about qualifying or what should I do to get a second mortgage? I cannot build equity into it with upgrades as everything is brand new. Should I give extra payments in hopes to reach 20% soon? Is there other ways to get loans without 15-20% equity... please help!!

@Shiraj Haque

Little off topic, but where did you get that book from? I would like to take a read!

I am just starting my house hack investment. I sign tomorrow morning!!

@Damian Bialonczyk

Is that amount considering as a whole duplex? Or per door?

@Damian Bialonczyk

Thank you for the input!

You read my mind as you typed that post! I have been battling for days whether to keep looking or close on it. What do you say a good amount of cash flow would be for a property like that?

Greetings,

I have my eyes on a duplex that is brand new going for 190,000. I am thinking of house hacking and renting out the other side. However, I need a second opinion or multiple!

Here are the numbers:

Price: $190,000

Loan/Rate:  FHA Loan/3.25%

Rental: $1600-1800/ month. ($800-$900/unit)  

Expenses: $1515/month 

$1350 mortgage/pmi + house fees

$65 - Vacancy 

$100 - Repairs (First year warranty full covered by seller). 

Cash Flow: $100/mo

Annual Cash Flow: $1200

Invest+Closing: $11,250 

COC Return: 10%

What do you all think? 
I am doing the numbers with the lowest rent income for the worst case scenario.The rent could be higher also it is a very nice looking inside out home for a family. Also, since its just being built there is not set Taxes or insurance, so I went a bit over to make the worst case scenario... I do not count on value appreciating... I know the first year I wont see any expenses going to repairs since its covered by warranty from the seller. 

Please advice! I would like to start my real estate portfolio!

@Jimmy Lieu

Hello!!

I’m doing 5% down hoping I can get at least for 185k it would be $9,250.

Closing costs would be about 5k.

In total it would be $14,250.

What do you think???

Greetings,

I am set on starting my real estate portfolio! I am one year married and I recently applied and got approved for a 200k duplex I am planing to house hack for a few years. The agent said price is negotiable so I am hoping to get the price under 190k. Market is really slow right now in my area so I have a good shot. 

Cost of duplex: $200,000 

Income: $1700 per month. Im calculating between 800-900 a month per unit. (Once both units are rented out)

Expenses per month: (Total $1479)

TAX- $333, Insurance - $100, Vacancy - $68, Repairs - $150, Mortgage - $808 

Cash Flow: $221.  Yearly: $2652

Cash on Cash Return:

2652/14250:  18%

What do you all think? I based this off the loan being 185k which I believe is average and doable for both me and the seller. I will be house hacking for a few years maybe until 20% is paid off so that I dont have to pay mortgage insurance and that would be more cash flow as well. Therefore, cash flow for the first years wont be much or maybe any since we would be occupying one but I am fine with that for now. 

Am i doing the math right and how does this look?