All Forum Posts by: Tim G.

Anthony,

Thanks so much for the advice, I am trying to focus on either a 2 family with a townhouse style unit or a 3 family at this point for cash flow purposes. Although it seems the insurance on a 2 family vs. a 3 family can be significantly higher. The challenge for me is simply finding a property that can produce enough cash flow to offset the expenses and produce a profit even if it is minimal. There are several factors I am now considering when looking at a property in Rhode Island and a compromise will have to be made somewhere in order for this plan to work. Is it appropriate to add around $600/month on top of the mortgage principal/interest payments for insurance, taxes, etc? I have a perfectionist attitude towards things in life so maybe I am over thinking everything. I have narrowed down my price range to $150k-180k for a 3 family (or 4) and 125k or under if its a 2 family (125k-150k if its a townhouse as the rent can be significantly higher). I am trying to form the "road map" mentioned in the ultimate guide on the site here and as typical, its one of the hardest parts to figure out. Were pre-approved for 200k and qualify for 100% financing on a two family with the rent being factored in (of course I will analyze the approval thoroughly based on what you have told me). I really appreciate your help/advice as it has already helped me greatly.

Thanks

Timothy

Anthony,

Thank you very much for the advice and I understand regarding the multiple posts as it has happened to me before as well. After listening to some of the pod casts and reading through the ultimate beginners guide on this site, I have updated my investment plan. I believe it would be wiser to forget about a duplex at this point as there is no way it will generate decent cash flow unless i got it half market value. I am going to focus on a 3 family unit instead with an FHA and go that route as the cash flow will be much better. I would imagine its one of the harder properties to find in RI but am hoping some will come up. Whats your opinion on Providence? After looking at a couple of sites, it seems the appreciation rates in Providence are on the higher side compared to most other towns in RI. Of course the big problem in Providence is crime and getting in a decent neighborhood so that will be the challenge.

Thanks

Tim

I wanted to get some advice on multifamily properties in particular if you don't mind. I'm basically considering a 2 family property in the RI area with 100% financing and full assistance through a local lender (ri housing and yes i will go over the loan documentation with a fine tooth comb) with virtually nothing coming out of my pocket. I'm of course looking for a place that will cover at least the mortgage principal and interest payments from the rented unit. I am totally new to this lifestyle but when i was considering buying a single family home I thought "why not have someone help pay the mortgage and minimize the costs of home ownership" by doing a owner/occupied setup (while the unit is not vacant anyways which I know a 10% vacancy rate at least needs to be factored in). I figured the "safest" bet was to start with a 2 family that needs minimal repairs and go from there. Rentals in the RI area are extremely high and for a 2br/1ba unit i could get at least $800+/month and I would be able to cover 100% of the mortgage if the units were vacant as i work full time during the day. The only thing i am concerned with is the profitability of the long term investment over time and what calculations i need to perform to project that. I am actively searching as we speak and have ran into several properties that did not work financially already due to factors such as flood insurance, high property taxes, to much rehab, and strangely rodent problems in particular areas as well.

Thanks

Tim

Thank you for the offer Anthony and I will definitely look into going one Thursday. I work 40+ hours a week right now and have since I graduated college last February which has helped me to pay off all of my school loans and become debt free. At this point I am just working towards saving up funds to help in the purchase of a multifamily I decide on. I was working with RI housing and they have a product which offers 100% financing on a 2 family home only, any thoughts on that as a potential financial route? Of course if it was a 3 family it would still be a minimal upfront cost. I have just been trying to decide if a 2 or 3 family is a better option for my first investement.

Hello everyone,

I am a newcomer to the world of real estate investing and am hoping this site can assist me in making educated decisions. I am looking to purchase a 2-3 family in Providence or Kent county and it has been quite difficult thus far. I do not have the deep pockets of an investor but do have general contracting knowledge so will most likely be looking at a fixer-upper. If someone has some advice for multi-family investing in the area of Rhode Island that would be wonderful. I'm still in my early twenties and just graduated college with a job right out the door thankfully. My reasons for investing are first of all my family and the fact that retirement in this economy is grim at best. I want a solid financial plan for our future, anyone with advice/tips please chime in.

Thanks

Timothy