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Updated about 5 years ago on . Most recent reply
Ready To Take Action
hello my name is Sylvia and this is my first post so I apologize ahead of time for any mistakes I might make.I live in Cincinnati, Oh and I'm interested in buying a multi family as my first investment property, preferably a 4 plex. I've saved up a little over 5,000 dollars and I plan to live in one of the units and rent the rest out. I'd like to either go in using an fha loan or use some creative funding. I was thinking of possible buying a property through the sheriff auction at our local court house.
I'm making this post because I'd like to connect with other real estate investors in Cincinnati to gain more knowledge and maybe they can give me further advice on how to move forward. I'd also like to hear how other investors on here funded their properties even though they didn't have much money to start with.
Most Popular Reply
Congrats on taking your first step! Your plan is a good one to get started, and many investors choose to go this route. A couple things to consider:
Buying through auction at the courthouse generally requires you to close on the spot, with cash. Since you do not have the cash to do that, you would need a private investor to make that work. It's also risky since you can't see inside the properties ahead of time, and you are not guaranteed a clean title. This is better left to more experienced flippers.
Another thing to consider is that you have just enough cash for a down payment and closing costs on a cheap 4-plex (we're talking maybe $100K property). This is going to put you in a rough property or in a rougher part of town. You will not have any cash reserves to rehab the property, or deal with issues that crop up during the normal course of owning a rental property, which is very risky. In all likelihood, you will not meet any lenders requirements to close (in terms of cash reserves).
My advise to you is to keep saving! You may also consider finding a property that needs a lot of work, and partnering with a more experienced investor to rehab it and refi.