All Forum Posts by: Ronnie Goode
Ronnie Goode has started 1 posts and replied 5 times.
Originally posted by @Joe Young:
Originally posted by @Ronnie Goode:
Originally posted by @Joe Young:
Originally posted by @Ronnie Goode:
Originally posted by @Joe Young:
Someone else was just recently having the same dilemma. If you are open to the idea of buying a 4 unit building, you can obtain an FHA loan and only put 3.5% down, fill the other 3 units with tenants, live in the fourth unit yourself, and they will cover your mortgage almost if not fully. This will stop you from paying rent monthly and your money will go into equity. Even if those three units don't cover all of the expenses, whatever you put into it you will see again.
This doesn't sound like a bad strategy. The FHA loan only requiring a 3.5% down payment is attractive and advantageous. I'm assuming that I would be able to rent out the unit that I will be occupying in about 1-2 years. I think the requirement is actually 1 year.
FHA on 2-4 unit buildings from what I have seen is how most people get their start. Either right when you start or when you move out, you are cash flow positive every month, so now you have your income from your day job helping you obtain cash, and monthly income from the property while equity is being built. It's probably the best starter strategy IF you know what you're getting into and are prepared to handle issues that arise.
By issues do you mean mainly dealing with the other tenant(s)? Collecting rents, responding to maintenance requests etc.?
Collecting rent, maintenance expenses, non payment, vacancies, evictions, tenants that are difficult to live near or listen to, etc. The potential issues are endless and you need to be sure you have the patience and money to handle them.
Thanks I appreciate the insight. This was definitely helpful!
Originally posted by @Sarah Stamper:
@Ronnie Goode hi! I am a REI in Richmond. I didn't get to read all the other comments. I'm sure others have already said this but I would start with a duplex or house hack. Rent a room to a friend if possible. Duplexes can be hard to find. Wishing you the best of luck!
Thanks for the information. The duplex strategy sounds like something I will investigate further since you're the second person that mentioned it. Appreciate the insight!
Originally posted by @Joe Young:
Originally posted by @Ronnie Goode:
Originally posted by @Joe Young:
Someone else was just recently having the same dilemma. If you are open to the idea of buying a 4 unit building, you can obtain an FHA loan and only put 3.5% down, fill the other 3 units with tenants, live in the fourth unit yourself, and they will cover your mortgage almost if not fully. This will stop you from paying rent monthly and your money will go into equity. Even if those three units don't cover all of the expenses, whatever you put into it you will see again.
This doesn't sound like a bad strategy. The FHA loan only requiring a 3.5% down payment is attractive and advantageous. I'm assuming that I would be able to rent out the unit that I will be occupying in about 1-2 years. I think the requirement is actually 1 year.
FHA on 2-4 unit buildings from what I have seen is how most people get their start. Either right when you start or when you move out, you are cash flow positive every month, so now you have your income from your day job helping you obtain cash, and monthly income from the property while equity is being built. It's probably the best starter strategy IF you know what you're getting into and are prepared to handle issues that arise.
By issues do you mean mainly dealing with the other tenant(s)? Collecting rents, responding to maintenance requests etc.?
Originally posted by @Joe Young:
Someone else was just recently having the same dilemma. If you are open to the idea of buying a 4 unit building, you can obtain an FHA loan and only put 3.5% down, fill the other 3 units with tenants, live in the fourth unit yourself, and they will cover your mortgage almost if not fully. This will stop you from paying rent monthly and your money will go into equity. Even if those three units don't cover all of the expenses, whatever you put into it you will see again.
This doesn't sound like a bad strategy. The FHA loan only requiring a 3.5% down payment is attractive and advantageous. I'm assuming that I would be able to rent out the unit that I will be occupying in about 1-2 years. I think the requirement is actually 1 year.
And I hear you on the read, read, read thing. I've been consuming everything about RE I can get my hands on. There's a wealth of knowledge out there. I just want to start small, but really want to get started. Trying to avoid over analyzing and spinning my wheels without any action.
What's up RE peeps?
I'm in the Richmond, VA area and I'm extremely new to RE investing but have been hit by the "bug" like a lot of people. I've been absorbing a ton of information on RE to help with foundational knowledge. This world of RE seems to have so much to offer and I wish I would of started years ago.
I'm pretty much at a crossroads right now though. I currently don't own a primary residence but I am thinking about purchasing an investment property FIRST.
I would appreciate any perspectives on this strategy/plan from folks that have experience in the RE space. Thanks!