4-unit owner occupied investment as my first property?

[Mike Batir]

Hello. My name is Mike and I am brand new to to investing in real estate. It has always seemed like a no brainer to me to have tenants paying your mortgage/making you some money but it seems like nobody wants to get into it. Besides the horror stories of horrible tenants which you have to expect I just don't see how this is a bad idea.

A little about me.....I am 26, in my first job outside of college making 100K and will be paying about $1300 a month for my college loans over the next 25 years. I do not have any family that I am supporting and am currently renting a 1BR apt for $875/month. I will not be needing a house of my own anytime in the foreseeable future and it seems like an owner-occupied investment property is perfect for me. I know (or maybe I have no idea) a 4-unit building will be a challenge but at this point it seems like a solid move. With units occupied 70% of the year the mortgage would still be covered completely with out any contribution from me. I know taxes will be additional but if I am throwing away 10.5K a year in rent, why not put it into an income property?

Any help, advice, caution, or reassurance that can be provided would be much appreciated.

Mike

[Scott R.]

Will you be living in this property, you mention buying it owner occupied so I'd assume youd actually move in?
my one piece of advice, coming from a similar aged investor.
NEVER ADMIT YOUR THE OWNER!
its way best way, and the tenants are more laid back and themselves around you! your just the maintance man/manager working for someone who owns the property, probablly lives out of state, and is a dick..
Being new in the game, you dont always think things through 100% if put on the spot, it's too easy to give in and people try and take advantage of you at a young age, new in the game, this ALWAYS gives you an out, gives you time to consiter anything,

tenant wants to have a dog, put on the spot you might agree, but as the manager you'll ask the owner and get back to them. !
there rent is going to be late, well you'r required to charge them the late fee, its not your rules, its your job. you dont get the money and it doesnt effect you at all,
they almost seem to think your more on there side if you live in the multi unit and are not the owner
Hundreds of small situations, and your tenants are more likley to tell you stuff IMO if they think you are not the owner.
TRUSE ME it works! :)