All Forum Posts by: Matthew Mason

1 - Read a few of the top REI and Personal finance books

2 - Start analyzing deals and practice running numbers & networking

3- TAKE ACTION  - House Hack

Educate yourself then make moves. With an income like that an limited expenses you are 5 times ahead of half the people on this site. Taking action is the important step. If you are serious about acquiring rental properties the sooner the better. There will never be a "perfect time"- you are so much better off getting some schedule E on your returns and landlord experience than saving a little more every month (500 bucks?) by staying with parents. You can look at FHA mortgage but if your making that kind of money you should have 15-20% down in a few months or so on most properties? FHA is somewhat expensive debt when compared to conventional financing. You will have a better equity position going conventional as well which will help when looking to 1035 or refi in future. Study up on running numbers and financing options and GET AFTER IT.

Stick with HVAC W2 job for 5 more years and build the cash flow from rentals. Then look to make the transition into agent once you have 5 buildings throwing off 40k a year to help you while starting out as an agent.  Very tough getting loans being 1099. Typically lenders want to see two years 1099 before they will look at lending to you.

Looks like you’ll need to budget in some new windows too lol... yes one electrical meter there. no go in my book.

Easiest way to check on utilities is to look for electric / Gas meters outside of property... This can usually be done right on google maps, Its not 100% but usually will tell most of the story. At least with smaller multis.   all info you should be able to gather from property listing. Then do your due diligence to verify information via leases & property inspection.   Smaller multis with joint utilities are on my list of no go properties for the most part. It is too variable and will negatively effect your bottom line.

Hey Jimmy, You should be running numbers as if you are not living in the building. Hopfully it has separate utilities so you can put that on the tenants. It is typical that landlord will provide W/S and lawn/ snow.   Some landlords provide trash some do not. Personally, I do.   Call around to trash companies and check with local municipality to see average water bills. (this is assuming you are on city water and sewer).

Feel free to reach out with any questions on running numbers! best of luck.  

Hello All!  I live in Glens Falls and work in Saratoga. Real Estate is in Saratoga is currently untouchable for an average investor or someone starting out. You will be paying well around 150 (on the low end) per Sq foot for a building that likely has some differed maintenance. A 2/3/4 unit in good shape will hit the market for anywhere from 300K - 750K.   The numbers simply do not work. Yes rents are higher, maybe 1150 for a decent 900 sq ft apt. but does that justify the 140K you will be paying for the unit? It doesn't in my books.   Saratoga is a beautiful area but not the best spot to be buying multifamily for the average/beginning investor.  In comparison, 15 miles to the north in Glens Falls, nice multifamily buildings are selling like crazy for somewhat reasonable prices. You can find a somewhat decent multi for around 60Kper unit maybe less if your willing to swing a hammer\ and rents are between 700-900 depending on location in the city and condition. The numbers work pretty well. Some other surrounding areas such as Schuylerville, Mechanicville, and even Ballston spa will yield much better numbers than looking to buy a 275K Duplex in Saratoga.   Happy to discuss this further if anyone has any input or suggestions for investing here in upstate NY!!!

I used an FHA on first purchase... many credit unions and portfolio lenders/smaller community banks will lend 5% down on a multi if your going to live in it.

Hello Hoai...your last hard credit pull has absolutely nothing to do with getting pre-qualed for a mortgage. It can sometimes drop your score a few points but really doesn't have an impact overall.  Mortgage underwriters will look to see where your down payment funds came from. they will look at 60 days / two months of bank statements. Just because you moved funds between banks doesn't really mean anything as long as you have previous bank statements showing the source.

Why wait!? let landlord know what your trying to do and he may let you leave before lease is up if you give 60 days notice! seems you have a great chunk of change and good credit score... Get out there and look for a 2-4 unit and use an FHA. your looking at aprox 5% of purchase price cash to close(depending on closing costs obviously) go grab a 4 unit for 250 (not sure your market) your looking at 20sh down, you will still have 30K for repairs/reserve/ next purchase!

Find some local lenders!!! Your best bet on this would be to do a Refi while you are still living in the prop. to secure the best terms. Some lenders will go up to 90% LTV on an OO Refi. some even will let you cash out anything up to 90%. after you close on refi you are free to look at different properties. You can rinse and repeat with FHA but you will need a reason to be getting an FHA when you already own a Multi.

Contact a few independent agents, provide info and ask for quotes. Replacement cost is best. Max out lib at 500K.

Two other coverage's you may want to add that don't come with basic dwelling fire policy:

1. Water Backup, 5k-20K This covers overflowing sink toilet washers ect. is not covered on standard DF/ landloard policy but is a common type of loss.

2. Personal Property coverage, anywhere from 2500-10,000 This will cover appliances, if you are furnishing apt I recommend at least 5K of cvg.     

Make sure dwelling is in decent condition after policy becomes effective, insurance companies often have outside inspections done. Make sure all railings/ gutters are secure, no crumbling masonry ect.

You can also opt to add a personal umbrella if you are going to hold the property in your name for excess liability protection.

GoodLuck!!!