Realistic, but supportive advice about buying a triplex

[Emily K.]

Hello everyone,

I currently manage 3 Airbnb properties and I have the potential to thrive in this market. I do everything including meeting up with the renter if necessary, cleaning, communication and stocking. After 2 years of doing this, I want to purchase my own duplex or triplex and rent them for Airbnb and live in one unit. I want to do this with FHA 3% down and get a decent off market deal in Philadelphia. I would consider a fix and flip as well. Has anyone done this with very little money to start with? In my current role as a veterinary technician, I do not make much money and Airbnb managing has the potential to replace my job. I have only saved 10k thus far but I feel it's time to come up with a plan. I would like someone give me advice on this idea. What do you all think?

[Victor Steffen]

You can do it. Will be scary because after purchasing and furnishing the unit cash will be tight. Using a 3.5% down payment plus 2% in closing costs means you'll be looking to purchase an asset in the 200k range. with very little cash reserves left. first payments on a mortgage are due typically 2 months after closing so if you move into the unit right away and get them rented you'll be able to build some cash reserves in the period between when you close and the first payment comes due. You'll be really uncomfortable and might be a bit scary. but you can do it. Be sure to calculate the following expenses when doing your numbers : Insurance, vacancy, maintenance, mortgage, management, taxes, utilities. Accounting for these items will get you pretty close to the cash out of pocket you'll need each month. a lot of people will tell you to save more and have a bigger cash cushion. This is good advice. then again... scared money etc etc. merry christmas :)