All Forum Posts by: Bradley Heath

I want to start my real estate career this year, by buying a duplex and moving into it. However, I am having issues finding one that meets my needs. The ones I find are already fully occupied, out of my price range, or straight up dumpy. The only place I have looked has been the MLS so would anyone have any other suggestions?

So, I work for a leading mobile home manufacturer.  As a benefit, I can purchase 1 new mobile home for the manufacturing costs.  No profit for the dealer.   Not sure exactly how much of a discount it would be, but does anyone think it would be worth it to take advantage of this?

Also, duplex is not currently listed so there is no realtor involved. 

I finally found a duplex that I would like to make my first real estate deal.  Here is the situation,

I know someone who is planning on selling two duplex units in the near future.  The only reason he is selling is because ht is getting to the point where he wants to start slowing down and enjoy life (aka retirement).

Each duplex is currently appraised at $165k. My plan is to use an FHA loan to finance one duplex and in a year or so move into the other with another low down payment loan. I have already spoke with a loan agent and was told I would have no issue qualifying for the loan. Only thing is I have to wait until sometime between Nov-Jan before I can (i have to be at my job for so many months before they can use my monthly bonus to qualify.) One unit on one of the building is currently vacant and ready to move in.

The current rent is $795.  

The current offer given to me by the seller is....

I can rent out the vacant unit starting in Aug w/ no security deposit at $700/month.  I can rent at this rate until I can secure my loan.  The sale price is at $160k and he has agreed to  pay closing costs.  

What I would like to do is somehow incorporate managing the property to bring the price down.  If i were to manage both duplex buildings, how much would that be worth in terms of purchase price?  I would also incorporate taking care of lawn maintenance (which he currently pays about $70/month for.   So, with that, I am thinking of making a counter offer of:

-Monthly rent of $600 until I secure my loan.  

-Purchase price of $148k w/ the intent of buying the second duplex at the same price after  a year or so. 

- Seller pays closing costs.

- I would actively manage both duplex units and take care of lawn maintenance. 

What do you think?

to cheap? to much? Just right? 

Thanks a lot for the help!

That's a good idea.  You will have to forgive me as I have never purchased a home before.  However, is it possible to have the seller take care of all the closing costs?  If so, would that mean all I need up front is the down payment?

Hello.  I do not live in Cali, but did have a general question about insurance.  For a duplex investment property, would there be any difference in insurance prices/requirments if I were to live in one side as opposed to renting out both units?

Thank you. I figured that may be the case but figured I would check.

I am looking to purchase a duplex to live in and rent out the other half. However, the seller actually has another identical duplex directly next to the one I am looking to move into. Would it be possible to obtain both duplexes on one FHA loan? Also, is it possible to obtain these properties w/ no money down? I would have enough for a down payment for one duplex but not both. Thank you.

Thank you for the advice!  I appreciate it.