All Forum Posts by: AliceSun Norman

I am officially becoming a landlord tomorrow with my first duplex and then again a landlord/neighbor with another duplex later next month. 5 years later and all of this advice is still so relevant. Thanks to all who contributed to this conversation as I have soaked in every word and will be making last minute updates to my welcome letter and leases based on this advice! and thank you to BP for leaving these threads up for newbies like me to find! 

I hope 5 years later you’re all rocking it as millionaire real estate investors!! 💕

@Thomas Phu now I’m jealous!! How did you get it with 10% down?? I would have done conventional if I could have done 10%!

If you're doing owner occupied you may want to consider fha loan as well, less cash out of pocket to save some for if the prices dip next year. I'm doing a VERY similar deal right now - moving into a duplex that cost 461k and rents for 3800-4200 total when both units are occupied. With FHA 3.5% down, the loan is expensive (though I got a 2.25% 30 year rate), the CoC is high since I have so little cash in the deal. 😊 it's hard once you have the contract already, but I would check into FHA financing if possible.

If I'm not mistaken, you don't have to put anything down with a VA loan, but you do have to make the place your primary residence. I would save the cash for repairs and/or another property. You'll need some cash for closing costs but you may even be able to negotiate that down as well.

You can move out after about a year and keep the loan terms in most cases even if you rent all of the units out, at which point you’ll have the cash to buy another place. 

@Jamie Kammers I have been in the same boat. Put offers in and analyzed so many deals in the past few months. Some of my offers, I knew were too low and although I was hopeful they would get accepted on the low side, deep down I knew they wouldn’t and that brought me relief (bc I was SCARED!). I got my first accepted offer last week on a duplex. Pure investment so the costs are a little higher. With every decision I’ve had to make in the last week including financing, inspectors and even the negotiation - I’ve been rethinking it and considered backing out. Ive gone in circles due to fear that I’m not making the best decision.

Each time the way I’ve calmed my mind is exactly what someone said above which is thinking of best case and worst case scenario‘s. Worst case I sell it and break even or lose several thousand dollars. The lessons I learn by buying now, I think are worth the risk of breaking even or even losing some money. Best case is values continue to rise and so do rents and the performance of the money I’m putting into this property continues to grow as well so I can buy more and more properties.

Just do it! Get in the game so you can grow your knowledge and experience ASAP. I don’t think you’ll regret it. Best of luck!!

@Jake Peetz hi Jake! I’m an newer investor and currently live in jacksonville Florida (closing on my first duplex next month)This is an AMAZING deal!! I’m a little jealous! Haha. Are those deals typical for your agent or just one that was stumbled on? I need to talk to my agent!! Also, do you mind sharing what side of town the property was on?

If you’re ever back in Jax I’d love to have lunch of coffee. Or if you need a fellow BP investor in Jax to check out the property or another for you, feel free to reach out to me!

@Reinaldo Lopez that makes perfect sense, and I feel like it will give a better eye when looking to flip properties. Heck, even if I become a realtor it could help me better assess the job other inspectors are doing!

I definitely see the value. Thanks for the tips on where to start. I think I’m going to go for it!

@Julio Garcia I didn’t fully consider the networking perspective! Great thought, thank you. Since it’s so inexpensive I think I’m going to go for it!

How many investors are also inspectors? It’s pretty inexpensive to become an inspector and feels like it would pay dividends and allow me to earn income on the side if and when times get slow. Plus, of course loving real estate getting into more homes seems fun and interesting. Is it worth it? Will it be a distraction? Does anybody have pros and cons? 

I am a new investor, just sold my first home that I lived in for nine years. Did some house hacking renting some rooms out and made a pretty good profit on that and the home sale, now I’m looking to turn it into several doors. I’m finding it hard to pull the trigger because market prices have jumped so much so I’m trying to think creatively about how to tiptoe in right now, And gain experience that will benefit me in the long run.