Looking for help in buying a multifamily with positive cashflow

[Adiel Arvizu]

Objective: Use an FHA loan to buy a multi-family property somewhere around Jersey City Heights and finance the down-payment and closing costs with either a private loan or a gift which I intend on paying back.

Requirement: 

• 10% + ROI off the bat, will settle for a little less.
• It is in Jersey City heights mainly because I have aging parents to take care of.
• Utilizes FHA financing am open to other financing options if it proves to be better than FHA. I am buying from a realtor but if there are any owners who are willing to sell then I am open to owner fiancing.
• Preferably a 3,4 family or mixed will settle for 2-family
• Improvements needed should be minimal. I am willing to do floors, lighting, painting, and door replacement
• Place should only have one vacancy

Action taken so far: I have been going to realtors looking for properties and I was told that the FHA loan covers so much so my price range has gone down to at max $620,000. I did want to go for 3-4 family properties but there aren't a lot of them so I am settling on 2-family but the thing is that I don't think there is a good ROI in 2-family houses in the heights. I am also in the midst of getting my FHA loan approved that way there are no questions about it.

What I want: I want to know if there are any more ways to generate leads that don't mind utilizing this financing. I will try banks and courthouses and I am open to foreclosed properties although that sounds like a whole new kettle of fish there and I'm sure most of them are vacant which isn't something I desire. I also want to know if there are anymore financing options because in an ideal situation I would get owner financing and it wouldn't be as much of a problem. 

I just want my first official home purchase to be as painless as possible and I want it to jumpstart into me buying more properties. 

[Brian Garlington]

@Adiel Arvizu

@John Miller

What you need to do is an FHA203K Loan...................Only 3.5% Down for the FixerUpper/Foreclosure/HUD/BankOwned Fourplex and the cost of the repairs are already going to be built into the loan...A good 203K Loan specialist will walk you through how it works......and.

...at the expense of scaring you.....Do NOT look for one that has tenants in it......You want to find a "smelly property"....ideally that 620k Fourplex in an area where all the others are selling for 700KPlus.....and put your own tenants in there once the property is fixed up.....I know you like the idea of instant cashflow but there are countless stories of inherited tenants being the WORST tenants you can deal with in a multifamily property.....but......

The property will probably take only 3 months or less to fix up and the rents that you get from YOUR own tenants will be rents based on a 700k to 800k value property even though your mortgage is only for 620K......THEN you will get the kind of cashflow that EXCEEDS what you are looking for my friend