Just Starting Out

[Francis Ofori]

Hey guys,

My name is Francis.  I have just closed on a new duplex I am planning on house hacking next year.  I'm really excited as this is my first home purchase.  I would have never thought of buying a multifamily unit had it not been for the BiggerPockets podcast and videos.  

The duplex I purchased doesn't need a rehab since it's a new build.  So the hope with that is after I move out in a year or so with appreciation and increase in property value, I will be able to cash flow the property in the next 2 to 3 years.   I didn't want to go through the rehab process of a house hack the first time around because I have a small child.  But after I live in this new property, I am planning on either finding another multifamily or investing in a single-family property in my state or the Midwest.   

I am looking to get into Wholesaling as a side gig to help fund my next property I want to purchase and would love to connect with anyone I can just learn from. 

Thanks

[Alecia Loveless]

@Francis Ofori 4 years ago I was downsizing and the duplex next door came up for sale. By the time I found out it was already under contract. It fell through. The price dropped and by the time I found out it was under contract. I contacted my Realtor to get the story about it. It seemed there was some foundation problem with it. I asked him to keep his eye on it. 3 weeks later he called me and let me know it fell through.

I asked to go see it. So my contractor and my Realtor and the sellers realtor went and if needed some work bug we couldn’t see any indication in wall cracks or doors not closing that there was a foundation issue. So my contractor called his foundation expert and he came and looked and said it’s a pier and beam foundation there’s 3 piers that maybe need to be replaced. The guy the other people called jacks up buildings and wanted to make a job for himself.

I went back and offered $99K on a building that was originally listed at $215K “because it needed a new $75K foundation”

They took my offer. I renovated the one side for a great tenant of mine for about $25K and my partner and I moved in about 3 months later. My partner would still prefer a SFH but does like the rent check each month and lives the new evaluation that just came in at $336K which is about what I've been saying for 6 months now.

A duplex is the smartest first investment you can make. Even if the other side doesn’t pay your entire mortgage it will build equity while paying a portion of your expenses. Then like you said if you can save up for that next down payment you can use that low down payment option and buy another duplex in another year or a year and a half.

I have found the key to this form of investment is to try to minimize within reason the amount of stuff you accumulate because it’s just easier to keep moving.