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Updated over 7 years ago,
Needing encouragment for a first time multi unit purchase!!
My husband and I are very new to real estate investing in Ohio (near Columbus) In April we bought our first flip (in the country) and are about a week away from putting it on the market. If all goes well we should net around $50,000. With that money we had planned on buying a rental and saving money back for another flip when the right one comes along. Well of course the perfect rental came on the market. Bank owned, 3 units (2 separate houses on one property) The front house is 3Bed 1bath and rentable immediately. The back house has a 2Bed 2Bath and a 2Bed 1Bath. This house needs some windows replaced, a new roof, and just some paint and flooring but otherwise clean and in good shape. All of the numbers make sense. The house is $79,950, rents will be about $850, $650, $600 ( $2100 total). We will be getting a construction loan to pay for the roof and other improvements (about $20,000) and then we plan to BRRR. Every way I work the numbers we will net anywhere between $1000-$600 a month.
I know this all sounds great and I'm sure you're wondering what the hesitation is about... well we have not sold the first house yet. Even if we use all of the money in our savings for a down payment on the 3 unit we will still be a few hundred short...not to mention that's all of our money (until we sell the flip house). Any and all advice to us newbies would be so greatly appreciated. I know we could take a loan out or go with a private investor for the down payment money but in a perfect world our other house will sell in a day and we will have more than enough for the down payment. We have not used a private investor yet and I'm not sure where to get started with even finding someone.