Multi-Family Investment Connections

[Christian Nickolas Setser]

Hi All!

New to BiggerPockets. New to Real Estate Investing as well.

Currently am a 25 year old in capital equipment medical device sales. (Save at least 30% of salary yearly) 15% of salary goes to Stocks, 15% of salary goes to my 401K.

Will be looking to purchase real estate in the next 3-8 months; have read a lot about house hacking and multi-family rentals. Would be aiming to do an FHA loan @3.5% and living in the property for at least 1 year.

Looking to connect with any investors willing to share best practices, tips and tricks and anything veterans may have done differently when first getting started.

Currently in process of relocating back to Tampa Bay from Pittsburgh Pennsylvania. Will be looking for multi-family units in Tampa, Sarasota, Miami-Dade area, Nashville or Dallas (areas where my next promotion would send me in January).

If I can provide any additional information, please let me know.

Additionally if you are first getting started in multi-family and are near similar age 20s-30s - feel free to connect as well.

Appreciate any help and advise from experienced investors in advance. Can provide contact information upon request.

Thanks BP network!

[Chris Collins]

Welcome @Christian Nickolas Setser. I went through this process last year. We put 5% down on a duplex in LA with an FHA loan, fixed it up, got it rented, and refinanced to a conventional loan. There were certainly some growing pains along the way, but all in all it was a great learning experience and we plan on doubling down on rental properties.

While I was aware of the PMI necessary on a low down payment loan, there were two major factors that I didn't find out about until we were in escrow. First, in addition to the PMI you will be responsible for a one time MIP payment. While this can be amortized with the mortgage, you are responsible for the full payment when you sell or refinance. Second, PMI payments exist for the life of an FHA loan, even after you have built up 22% equity. You must refinance if you want to eliminate the PMI. Basically, think carefully about the costs and benefits of an FHA loan. You pay a lot of money for the benefit of a low down payment. I hope this helps!

Interestingly enough, I am looking at Pittsburgh for our next rental property.  Would love to talk about your experiences there!