Need help on multi family investment

[Erere Ovirevarie]

My name is Erere,I join BP 2020 with the intention to learn about the best investment strategy in real estate ,I realized then that I can only start with multi family for house hacking and my job then was not up to 2 years for the requirements for FHA loan,along the line I have to move to Houston ,Texas and start afresh with another job,right now I am 2years in the job, but due to the current market situation I would love that I listen to the advice of expert in BP ...my questions are :

(1) is this the right time to invest in multi family due to high interest and skyrocket home  prices?

(2) what are the things I should be looking for in order to get a good multi deal that will be profitable?is it fixed interest,the value of the house and the cash flow after expenses?though I order for Brandon turnel multi family investing book but not yet arrived

(3)should I contact FHA lender right now for pre approval or still hold on?

(4)can anyone also link me to REIA meet up in Houston area if there is any...thanks

(5)will 25k be enough for down payment for triplex or four plex  multi family ?

[Austen Mueller]

(1) is this the right time to invest in multi family due to high interest and skyrocket home prices?

Answer: Yes now is still a good time to invest in a househack. What makes househacking so great is the little out of pocket expense utilizing an owner occupant loan. In this softening market we are seeing more opportunity for buyers to get seller assistance to pay down loan points(increasing cashflow) or covering closing costs(increasing cash on cash return)  

(2) what are the things I should be looking for in order to get a good multi deal that will be profitable?is it fixed interest,the value of the house and the cash flow after expenses?though I order for Brandon turnel multi family investing book but not yet arrived

Answer: I cant speak for your market however in my market of Pennsylvania we no longer see househacks that cashflow while you live in the property. If you can pay of your mortgage that's great. at that point your most likely coming out of pocket less than you would if you were a renter in the same market. If it cashflows when you leave that's really what your looking for.   

(3)should I contact FHA lender right now for pre approval or still hold on?

Answer: I would look for a lender and get pre approved now! its my understanding you only need two years of work experience if you get paid via commissions. If you have a w-2 job then you just need 2 paystubs. If you cant get pre approved you can come up with a plan with the lender to give yourself a path and actionable steps towards reaching your goal. Its always worth the call. 

(4)can anyone also link me to REIA meet up in Houston area if there is any...thanks

Answer: Cant help you there haha

(5)will 25k be enough for down payment for triplex or four plex multi family ?

Answer: that depends on the market. But my guess is that is a little tight. You may also want to consider a duplex or a single family that you can fix up. Remember you get what you pay for. you may want a 3/4 unit for cashflow. but for that price it may be in terrible shape or in a part of the market where you don't want to live and have a hard time renting. 

Hope that helps. I wrote a little blog on this actually. I think you can see it if you go to my page.