All Forum Posts by: Andrew Northcutt

Hey everyone, I'm exploring the idea of a 3-year ARM mortgage with 15% down vs a conventional fixed year mortgage for a longer-term buy and hold investment property. The rationale for considering the ARM is that, given the rates environment, I think there is a good chance that I would be refinancing in the next few years regardless. Therefore, the money saved from the lower down payment could be used to save for another down payment, renovations to improve rent and property values, etc. Beyond the higher initial monthly payments and possibility of rates staying/going higher, what other factors should I be considering?

I appreciate the feedback here! Given this would be a first investment, I do not have experience dealing with tenants and may have overlooked this element. With that said, I plan on utilizing the advice and services of a PM. 

I'm not too keen on the differences in pricing between MF and SFR yet. Currently, I think of buying a duplex as buying 1.5 SFRs from a price and cost perspective. If I switched to look at SFRs in this price range in these areas, would these be considered B Class?

Here's my initial thought process for MFs in the lower budget range:

MF will maximize my cash flow for my budget range. I don't want to have to buy a ton of doors to earn the same cash flow potential as fewer multi-family properties. However, my lower budget range ensures that I can have sufficient cash reserves for maintenance, repairs, and emergencies as well as a much easier path to fund an additional down payment to scale and avoid putting all my eggs in one rental property. 

Perhaps the answer is to save more for a higher priced and quality property, but again, that I think that means more time in between purchases.

Great, thanks for the quick reply! I'm okay with that, since I'm mostly investing for cash flow at this point. Therefore, as long as it's not too low quality area where it comes with a bunch of issues, then that should be okay. I guess that just takes more neighborhood-focused research. 

Given your focus in Columbus, do you have any pointers or suggestions for where I could start there?

Hey everyone, after shifting around my finances and returning to look for my first rental property, I am looking for a small multi-family property in a lower budget range from $125-175K (smaller % of net worth). Given the range, I am looking in cities that are more affordable but still appealing characteristics/demographics like Columbus, Cleveland, Indy, KC, Memphis, etc. I guess my question is what are the chances that any of these properties will be in or approaching Class B? 

I know that multi-families, even a duplex, triplex, and quadplex, are usually at premiums to SFR given the income and cash flow potential. Therefore, I am assuming that properties in this budget range would be lower quality and in less desirable neighborhoods even in the more affordable cities. Am I thinking about this the right way and what would be the best way of determining the class of properties to balance quality and the lower budget?

I'm aware this is an old thread, but it is still relevant. I'm assuming these figures are for SFRs. While I know it depends on each local market, would it be fair to say that in general the class B multifamily (2-4 units) properties are going to be more expense and that anything available for $175K or less is likely to be categorized as Class C?

I'm a new investor to the Charlotte region. When I discovered there weren't many small multifamily properties in the area, I switched my research to SFR before I found out about the zoning and then the UDO going into effect in June.

I was hoping someone closer to the market would be able to share what they are hearing about timeline with regard to higher availability of multifamily properties in the area? Is it right that development cannot occur until the ordinance goes into effect? 

Hi everyone, 

I currently rent and live in Manhattan. I am looking to get into real estate investing and was mostly focused on out of state investing. However, it occurred to me that I could afford the purchase price of an apartment with an FHA loan.

There have been many discussions of this regarding queens, the Bronx, and Brooklyn, but haven't seen one about Manhattan. Has anyone / anyone you know pulled this off successfully? 

Also, how would I need to adjust my expenses from out of state/cheaper cost of living to Manhattan? For instance, I assumed 10% for PM, 1 month vacancy, ~7% for maintenance and repairs, etc. 

As I continue to look and become more educated in these markets, I am finding it challenging to find cash flowing SFH. Would it be worth it to expand my search to small multi-family (1-6 units)? Are these types of properties as common in these markets?

I completely understand. Turnkey properties would be ideal and I'm open to cosmetic work but I am not pursuing a BRRRR strategy or anything similar at the moment. I've mostly been looking at 2-4 bedroom SFH that I would probably classify as B neighborhoods and properties, not typically the newer and nicest places since the numbers don't tend to make sense but not the poor condition properties that need a lot of work. Plus, that tends to make up most of my price range anyways.

Thanks for the insight into Gastonia. It seems like it is an area that definitely warrants further research as well as your other suggest areas. 

I would gladly look at the rental report. I'm willing to accept all the info and help I can get!

Thanks for the recommendations! I will check out those areas to learn more.