First multi-family investment

[Shane Digan]

I'm currently looking for my first deal and found a duplex in Oneonta, NY. It is listed for $147k and is currently rented out. I am looking to buy with an FHA loan. Everything seems to work in the units.

One concern I have is that I would have to kick out one of the current tenants (not renew the lease) as I am looking to owner-occupy. What would you do about that?

Also, I am looking to only live here for 12-18 months and then probably leave the area. Is this bad to do on your first deal?

The property is located in Oneonta, NY, but not in the area where most college students live.  It is located in one of the poorer areas of Oneonta.

[Aneury Evangelista]

Hi Shane,

$147k seems quite high for 2 units in Oneonta. Is this what you are offering, or is that just asking price?

if you are using an FHA loan than one of the units needs to be delivered vacant at closing for your use. This is not an issue if the seller agrees to it, and if they can get the tenant to move prior to the closing. This would need to be spelled out in your offer.

As for your stay and location of the property, living there for 12-18 months and moving is not a bad thing. Just make sure your numbers work, and that you account for Oneonta’s local agent and maintenance/code requirements.