Updated about 9 years ago on . Most recent reply
Newbie in Cincinnati (NKY) - 2 Deals to chose from
I am a new investor in the Northern Kentucky area. My region is essentially the southern suburb of Cincinnati. I am focusing on an urban area. I am looking to invest in my first property and essentially have two deals that I am considering. My main question is, what deal should I take? Or more importantly, should I try to do both?!?
Deal 1: a $42,000 duplex in a blue collar area with a motivated seller. If I do this deal I am going to owner-occupy for a year or so and do an FHA loan. Both units are move-in ready and vacant, but they bring roughly $500/mo when occupied. All utilities are separate and could be payed by tenant, but there are no appliances (fridge or oven) in either unit. I seem to be getting reasonable FHA pricing on this deal - 3.5% down, 3.5-4% rate, asking owner to pay closing, etc.
Deal 2: I have a solid lead on a yet-to-be-listed $70,000 triplex in a hotter neighborhood. The building has a large two bedroom top floor, an efficiency unit in back and a small commercial space in front. All units are occupied on month-to-month agreements. This unit has the same furnace, electrical and water heater for the whole building, so I would pay utilities. The owner is wealthy and doesn't want to deal with the hassle of land-lording OR selling in a traditional sense. He is free and clear on the property and is considering seller financing for the right buyer. This would require around 10% down, a short term agreement until I can potentially refinance in 2-3 years, a finders fee for the middle man (3-5%?) and other costs.
Finally, a little about me: I am a college graduate, early 30's, make about $60K a year and have reasonably stable finances. I have been researching real estate investing and pouring over listings in my market for at least 6 months (BP has been awesome, btw). My inclination is to jump in with both feet and go after both deals. Both are cash flow positive with solid cap rates and I am going in with eyes wide open (as much as possible) Anyone wanna talk me off the ledge?
Most Popular Reply
If you pass in either deal I'd appreciate it if you passed it on for me to evaluate