All Forum Posts by: Jennifer MacDonald

Found a HUD property I am really interested in-3 bedroom, 2 bath 1500 sq feet, nice area, etc. The HUD inspection states the plumbing failed their test. No further info available on this. No obvious signs of water damage in kitchen and baths but there is a strange rusted area around the door frame as you transition from the living area to the hallway for the bedrooms.

I would be buying as an investor so home inspection contingency is not possible in the contract.  I am being told I can have power turned on for the day for a full inspection(done before offer is submitted) but they won't turn on water when there has been a basic failed inspection in case there is a huge leak/water intrusion problem. 

So there are 2 questions here-any thoughts on what could have made the plumbing inspection fail? Secondly, is this biting off too much to get started into real estate investing?  I am a private investor that does not have other monies backing me.

Any feedback is greatly appreciated,
Jennifer

Just to clarify Jeff, I would NOT be moving into the duplex. Does this change your opinion of duplexes versus SFH?

Thanks!

I am a new investor, wanting to get into my first property. I have done a TON of research about how to be a real estate investor and have been actively looking at properties for the last few months. I keep coming back to the same dilemma............. cash flow and ROI. I want those numbers to be rock solid and will not budge about it at all. That being said I found a duplex that would produce just that-cash flow and great ROI in $$$/percentage. The realtor I am working with feels pretty strongly that if I am not going to rent one side and live in the other side myself that is becomes a dicey investment. I absolutely am not going to live in the other side of the duplex. I am 47 yo, work full time, and have an elementary aged child that I don't want to pull from her current school.

I am looking for thoughts/advice from those that have invested in a duplexes and possibly did not ever live in one side of the unit. I am not against SFH, however the duplexes I have seen produce better ROI at this point (that is renting both sides, not me living in one side and renting the other).

Appreciate any input!

Thanks Michael for your feedback.  Actually did find a duplex I liked really well too but had a hard time deciding if the area it was located in would support consistent tenants. Some of the duplexes were well cared for, some not at all.  There was a lot of Section 8 rentals in the area too, which personally, is not a turn off for me (guaranteed money each month at least for part of the rent) but may lead to a slightly higher vacancy rate.??  Unfortunately, went of vacation and an offer was submitted on the property while we were away. 

I live in Deltona but am looking to invest in the Deland area.  Deltona is overrun with rentals and Deland has very few but demand is high.  I really appreciate your honesty on my calculations.  Precisely why I posted as the numbers were just a little too close for comfort but wanted an experienced investor to give me feedback as well.

Will continue my search....................

Jennifer

Hello! Totally new to real estate investing but have been doing alot of homework. I've read Brandon's book at least 5 times already, along with a few others.  I have no experience in real estate, in fact, work in the medical field.  I have a family consisting of my husband and daughter.  We are looking for ways to diversify our investments and real estate really appeals to me. 

 Have looked at a few properties and hit on one that I think might work.  We are looking in a college town that was recently voted the #1 rising town in Florida.  Right now there are very few rentals in the area and the demand for rentals is high.  Utilizing Brandon's recommended formula to calculate your expenses over and above the mortgage, taxes and insurance the break even number would match the rent, likely no positive cash flow or very little cash flow (maybe $50 monthly).  Again, this is using figures for property management, capital expenditures, vacancies, etc.   This makes me nervous but also don't want to miss a great opportunity so wanted to get some feedback from other investors.  

Of note, this is a  2bed/2bath single family home.  Has renters already til December 31st.  Has had some updates to the property like double paned windows, new carpet and paint the beginning of 2016.  Roof may need some attention but have not had an inspection-this is just general observation.  Property otherwise in good shape in a great area. 

I'm just looking for any feedback on the "numbers."  Makes me a little nervous about how close the rent and expenses will be but everyone anticipates in this area real estate is going up and up based on the great reputation of the college, the growth in the area, etc.

Any help is greatly appreciated!

Jennifer