First Time Investor Triplex

[Dylan Henry Main]

Hi guys. Im looking to buy a triplex funded by the FHA loan for first-ti e home buyers. I obviously want to generate enough income to pay for my mortgage and have some cash flow at the end of every month. I have a few questions for you experienced investors out there.

1. Is it better to buy a fixer upper and actively work on it as I'm living in it so I can increase the appreciation for when I sell and move onto the next, or is it more possible to allow appreciation to occur naturally and build up my property ownership over the course of years and sell out in the end. Which is riskier, etc; etc;

2. How difficult is it to find tenants almost immediately after making my purchase and moving in? Should I hire a real estate agent? 

3. What is some other concepts I may not be considering? There's a lot I'm not putting on this post here but I have not yet invested yet and am open to what you experienced investors have to say to the rookies trying to start out

Thanks!!

[Michael Kistner]

@Dylan Henry Main

   Can you do the work yourself? If you can't then you'll need to figure out how much you can afford to put into a fixer upper. Finding a fixer upper can be the easiest way to gain appreciation. If you aren't buying a fixer upper I wouldn't count on appreciation. If the numbers don't work I wouldn't bet on it to appreciate, it's just an added bonus if it does.

   How quickly you find tenants will depend on multiple factors; how nice is your place, how nice is the area, and the time of the year. When you look for an agent to help you with your purchase ask them if they have any experience in this area. If they do they should be able to put you in contact with property managers and anyone else you may need to know.

  I'm not sure if you're just looking for triplexes but I would keep an open mind for any multifamily 2-4 units. It may give you more results and I'd take a duplex in a nice area over a 3-4 unit mf in a bad area. Know your numbers and continue looking at deals. You'll find something. Good luck!