Investing with low money
Hey everyone, my name is Tripp and I just recently moved to Orlando about a month and a half ago. I am interested starting my real estate investing career but the problem is I don't have a ton of cash. A little background on myself: I just graduated from school and am 23 years old. I currently hold a job making 40k a year and my family does not really have a real estate background so I am fairly new to all of this.
I know that I am interested in investing in small multifamily (duplex,Triplex) and holding on to them for the long haul. I have been on bigger pockets for about a month and have heard different things from different people about when to start investing. Is there ever a time where it is to early to start investing? I have heard Brandon Turner say that you need some extra cash just in case a deal goes bad, but at the same time if I find a deal ( a good one), I don't want to miss out on a good opportunity. I would love some feedback on when is the right time to start investing.
I have found a Duplex here in the Orlando area that I am fairly interested in. I am wanting to house hack this property, as I see that house hacking can be a solid strategy to start your real estate investing career. Here are the numbers on the deal that I would love some feedback on:
Purchase Price: 180,000
Taxes: 2,259
Rent per Side:1,650 (Each side is a 3b/2b)
Hoa: none
Electricity/ Water: Tenant
Vacancy: 5% or $160
Maintenance: 10% or $320
CAPEX: 10% or $320
Management: 11% or $352 (would be managing myself)
Mortgage: $829 after getting an FHA loan for 3.5%
Total Operating Expense: $1,440
Monthly Income:$3200
Total Expenses with debt service: $2,269
Monthly Cash Flow: $930
Please let me know what you guys think of this deal and since I am fairly knew to this I would not putting it past me that I missed something when analyzing this deal. Thanks guys!
Tripp Drummond