How to purchase my second property?

[Alexander Chavez]

Hello everyone, I'm wondering if anyone has any tips on purchasing my second property. I purchased my first duplex with a FHA loan for $136,000. I was approved for $200,000. I hired a property manager and now have tenants who are renting my downstairs unit for $1100. My mortgage is around $1000. I live in Grand Rapids, MI. and I purchased the property about 60 miles from where I work and live. Any Tips on what direction I should go or the time period I have to wait?

[Christopher Lombardi]

@Alexander Chavez, there is no need to wait any time period at all. Since you live in one of the units, I would recommend not having a property manager for the other unit. Its just not necessary. They will take all the profit and probably will have to do little or nothing from a management standpoint for a single unit. This will help you save up faster for a down payment on your next property. Also, since you have an FHA, I would guess you put little down but are paying extra monthly in PMI. As soon as you think the property value has increased enough that you can refi into a conventional without any money out of pocket, I would refi so you dont have to pay the extra PMI. This will reduce your monthly payments even more so you'll be saving more money to invest.

With those things said, I would begin looking right away and make lots of offers on great deals.  If one comes up, I'm sure you have some friends that might be willing to put up some of the down payment to get in on a deal with you.   Sounds like you are off to a good start and I have no doubt will be successful.   Best of luck!