All Forum Posts by: Jared S.

Great topic! I'm looking into purchasing my first multi unit in DC. My goal is to do an FHA. DC is super expensive so it will most likely be in a so so neighborhood. The tenant laws are ridiculous here so I'm a little nervous about that. Then I'll take the profits from that and purchase another multi unit.

Good luck!

 Nope.  But we started 2.5 years ago and have 30 year loans with low fixed rates.  If we get into a bind finding more financing after we exhaust all our conventional loan options, we may pay some off to be able to buy more that way if it makes sense at that time.  Right now, I'd be paying $47k to get $247 more per month, I would rather put that down on another property and get more cash flow, or pay down my own house first.

What I would say is to first determine if you want to purchase a multi-family unit that is occupied or one that is not occupied. There are pros and cons to both. With an occupied building you are already generating income or should be but its hard to make physical improvements tot he building and hard to get people to accept that you will increase the rents. You have to deal with landlord/tenant laws in your area. With an empty building certainly you can make repairs, improvements or modification far more easily but you do not have income until you get the place rented out. 

I would not say its a mistake but what if you have a 62 year old renting a part of your building. In some places they are entitled to a long term lease and a fixed rent amount. Just things you should think about when purchasing and rental unit whether single family or multi-family. There really is allot to think about but I am sure you will find out all you need. The more people live in your building the more things will come up for you to deal with.