All Forum Posts by: Matt Abi
Matt Abi has started 1 posts and replied 4 times.
Post: Buying Multi Unit Property with FHA but with fixed budget
- Oakland, CA
- Posts 4
- Votes 0
@Account Closed True that. As long as I pay the same <$1k out of pocket, I'll be okay. The only downside for my plan is if housing market goes way below in long term, I don't think my plan works out well.
Post: Buying Multi Unit Property with FHA but with fixed budget
- Oakland, CA
- Posts 4
- Votes 0
@Marcos Torres Thanks man. Is there a feature where I can search investors/wholesalers/agents by area ?
Post: Buying Multi Unit Property with FHA but with fixed budget
- Oakland, CA
- Posts 4
- Votes 0
@Marcos Torres If mortgage is $3k+ but total rent comes up < $2k, how can this bring a positive cash flow ? You can see this as an e.g https://www.redfin.com/CA/Oakland/690-Brockhurst-S.... Or am I missing anything ?
Thanks.
Post: Buying Multi Unit Property with FHA but with fixed budget
- Oakland, CA
- Posts 4
- Votes 0
Hi fellas,
I am new to BiggerPockets and would love to ask my first question.
I am total newbie when it comes to real estate investment. I have a well paying FT job in the Bay area and also e-commerce business on the side. I am free of debt and saved about $30k.
Someone recommended me to buy a multi unit family as a long term investment and I am learning a lot about it. Right now in the Bay area, it's hard to have a positive cash flow on real estate if you buy now since the prices are higher than they used to be 2-4 years ago but rental prices hasn't gone up much.
If I buy duplex or triplex with FHA(3.5% downpayment) I might have to spend all of my savings and even pay extra $500-$1k/month for the room I am going to live in the unit. Which is totally fine as I already pay $1500-$2k/month for rent in this area.
My biggest concern is, should I be worried a lot about recession or any situation that would bring the price of the house to be very low for such long term investments ? I don't worry too much about my job since my ecom income can support me as well.
I am not trying to get rich quick with this investment but more of a long term plan where I could be making a positive cash flow 10 years from today or good ROI if I have to sell it 10-15 years from today.
Last question is, I can also invest my money on my ecom business that can generate 30-50% yearly ROI but I thought of using my interest free credit cards for this type of investments. What % range ROI should I expect from multi unit family investments ?