Any REI starting out with families wi student loans?

Question

Hi there! I'm a stay at home mom of 3 (ages 6, 4 and 18 months) my husband works 40 hours --- and we are sooo eager to build passive income! Did any of you start out investing with small children as well? 6 months ago, when we decided to embark on this journey, i was stumped to discover my credit score was too low (no credit history). Right now we have 10k alloted to invest, I've been building my score to 630 (still going), my husband has a high credit score (900 range) but he has a massive amount of govt funded student loans.

We decided I stay home until the youngest is old enough to be enrolled in school. I've read books, forums, blogs, watched videos--just about whatever I can get my hands on to learn about REI. We are currently renting an apartment to live in (rent includes utilities so we have more $ going towards capital).

Can each of you share how you started out? What advice do you suggest? I've been crunching numbers using the BP calculator, evaluating properties (targeting MFH). We plan to get at least a Duplex via FHA or up to a quad plex to really gt our feet wet as a landlord, maitenance, legal experience, etc. I just feel like we have a rough picture of where we're going (end result), but really need to map out how to get there. Realistically, what things worked for you in your circumstances and kept you going? Thanks, Nhia.

Nhia Yang · Answer

I hope this answers your question on property values, @Michael Henry but apologize if this info does not. The first property is a quad plex (1br/1ba) for $110,000, located at 64 N College Ave, Tulsa, OK 74110

http://www.homes.com/property/64-n-college-ave-tul...

Second property is a 2br/2ba Duplex for $87,777, located at 1538-40 E 66th Court, Tulsa , OK 74136

http://www.homes.com/property/153840-e-66th-court-...

Thank you!

Michael Henry · Answer

I don't know anything about the property where you are from but $890 per month gives you around $166,000.00 loan 30 amort. 5% interest. This is assuming no down payment and not taken into account insurance, taxes, and monthly fix cost like utilities. What are the property values where you would stay or where you would move to?

Brent McKee · Answer

Both @Jeff Filali and @Michael Henry are giving you good advice. I do know that it is a little hard to find these type of deals in the Tulsa market. Be patient and one will come along that will meet your needs. Good luck and God Bless!

Nhia Yang · Answer

lol by the way, I have no idea how to tag your names when replying! My family and I are truly grateful for both your feedback!

Nhia Yang · Answer

Thanks very much @Jeff Filali!

@Michael Henry We are paying $890/mo which includes water, sewer, trash, electricity, gas and lawn maintenance.

Michael Henry · Answer

@Jeff Filali what did it sell for, was it a side by side? I can run some numbers for @Nhia Yang

Michael Henry

Jeff Filali · Answer

@Nhia Yang Welcome to BP from another Tulsa area investor. I started off with not perfect credit and only $30K in available cash to invest with. I agree with @Michael Henry, look into getting a duplex and live in one side to off-set your expenses, would be a great way to get started. I had one in Tulsa, but just sold it. I will try to let you know if I hear of any other good deals available. Best of success!!

Michael Henry · Answer

You should look into purchasing a side by side property in move into one side. Depending on the cost of acquisition you might have a positive cash flow but at a minimum, your expenses go down because the other side is helping you pay some of the bills. Do they have these type of properties in Tulsa and how much do you pay for rent?

With an FHA loan, you will only need to put 3.5% down as a down payment toward the property that you occupy. This does not include closing cost which can be another 3% or 4% depending on the loan product and points that mortgagor charge. Many of the closing cost can be offset by a Seller concession up to 6%.

The sacrifice you have to make is living closer to someone for a few years. Then you can move again to a single family with your old and new tenant (the one who took you unit) paying for most is not all of your mortgage for both places.

Michael Henry

Any REI starting out with families wi student loans?

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