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Updated over 7 years ago on . Most recent reply
Deal analyses (Newbie)
Hi everyone, Im very new to the investing world and BP. Im 25, recently graduated. Ive been doing tons of reading and planning to invest in buy and hold (When/if the right deal comes around). Currently I am debt free, and have 35k saved. My goal is to invest in multi families to become financially free within the next 15 years. I have found a 4 plex 3/2, 2/1, 2/1, 1/1 built in 1937 for what was originally listed for 245k 1 month ago then reduced to 239k, however since I called the realtor all of a sudden the price jumped back up to 245K. My plan is house hack and live in the smallest unit through an FHA loan. Current total rents are 2650. Also what do you guys think about the price hike after i showed interest? the realtor told me "someone submitted an offer, but were holding off". To me she's obviously trying to get me to pay more than the offer she got. Another thing is she sent me several documents like income, Transfer disclosure statement, tenant estoppels, and seller questionnaire. 1 thing that was a red flag was that the floor has cracks in concrete. I've looked on BP for others with this issues and I see it can be a big hit or miss costing from 10-30k depending on severity if not more. I would need to get a structural engineer to really look at the foundation. Ive ran the numbers at different price points 200k would seem to be ideal, At 220k cashflow is $180/month, or should i just walk away? Ive attached the numbers I ran considering it needed no repairs.
Most Popular Reply
@Trevor Lohman I Live in Sacramento and wanted to get into a duplex there. Its impossible to do that right now. Any duplexes that are found are in the worst parts of Sac and to top it off in horrible conditions. I realized that if i want to get into REI i had to look out of the city, numbers just dont work. Luckily I grew up around where i'm currently prospecting deals (1Hr away), so i've been seeing better numbers there. The complexes are in much better conditions, and obviously cheaper. Here is that 4 plex im looking at.