hey everyone, to start off my I'm 33 and my name is shawn. i purchased my first home back in 2018 with the intention of living in/fixing it up over the next couple of years while i saved to make more investments. i had a few mental struggles back during covid time frame and ended up selling my house faster than i wish i did. first mistake, however it still profited. the house was purchased for 218k and sold for 270k. i bought a sailboat on the east coast, taught myself to sail. then took off to the Bahamas till covid ended. although the life was nice, i wasn't growing and that bothered me. i recently moved back to California and have been on the grind looking for deals. i found a couple units that are cheaper on the list than most, i ran my numbers. on average 125-135k 2b/2ba condos. currently renting for 1250-1400/m sounds great until you consider hoa fees of 375/m. i called my grandparents as they have a unit there and was just inquiring on the status and costs of the area. he told me its been great they haven't had any issues with the area and never needed to evict anyone in the 30-40 years they've owned it. after doing the math i personally valued these units no more than 105k purchase at the high end but getting in was going to be hard. my boat is under contract an i should walk away with 40k. so i wanted to get in touch and make a verbal offer of 105k to each unit and hope one bites. i was mentioning around Christmas time that my boat was selling and what i was planning to do. a few days later my grandfather called me and asked if i wanted to buy the unit for 100k. i said yes that sounds good. after looking at the unit i called to get a loan from my bank. 5% down, 95k loan. after principle, interest, insurance, and hoa fees. i believe im looking at 1200/m .. which to me sounds ridiculous as my loan on the 218k house was 1200/m. add another $100 for repair costs(hoa covers outside i only do inside) then i break even at $1300. so renting for $1300-$1350 to stay competitive. only thing is a occupancy clause for a year. in which im willing to do. i feel like if i don't get in then I'm just waiting wasting time. but with 5% down allows me to keep that 40K in the bank for the next place.

My questions are...

being that its only a 100k unit. should i go ahead and put the 20% don't a make an investment loan instead?

should i keep the 40k to use on another unit or use on this one while having a primary occupancy on another?

if i remember right every $1k down is only like $16 a month off. so i feel like keeping the cash in the bank would be the smarter choice. however i dont want to over leverage and be stuck with a hefty payment if rent decides to drop in the area.

im just trying to find my best routes from people who can teach me a bit. my goal is to at min purchase 1 property a year. but id like to utilize this money to get a jump start into hopefully 3 homes this year

my long term goals are 15 units within 10 years, 30 by 20 years. i know its doable, i just need the guidance from others. i don't care about the money really, but treating this like a game. its been my dream since the 7th grade to open up my own property management company filled with my own units. being from califronia i never thought it was possible. i make $3700 a month with $0 debt. so this 100k will be my new start. i dont really spend money and have a 776 credit score. i feel like ive put myself into a credible position to make this happen but just looking for the right flocks to follow.

Fresno, California

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