All Forum Posts by: Brendan O.

Dear BP,

I have two options to get me started as an investor. One is to buy 4 units with an fha(3.5% down) and most likely break even each month after paying omi, taxes maintenance etc. The other option is to buy a single family with 5+ bedrooms and rent out the rooms to pay the mortgage, Good cash flow is likely. I will need to put down 20% though of which a relation will give me 10%). What do you think is the better option for my long term goal of being a buy and hold investor? If I do the fha first maybe I could buy a singe family after with my relation giving me 10% of a deposit. Cant pass up a 0% interest loan. Im in san francisco and its expensive here.

J Martin,

Thank you for the response. There are no fourlplexes in the city right now that would be close to breaking even having to pay the omi and live there for the year. I know i can refinance in 6 months to a conventional but that might not work out either if the value does not increase enough. I was hoping to stay within the city or as far as daly city possibly. I know all about tenants rights in sf

I should mention a relation is willing to give me half of the downpayment if i choose single family and not fha. I will just need to pay him back his 10% say at the time i sell or refinance. Would that be a better option than going with fha. Id still have most of my equity that way and more down bringing my monthly payments down without omi or pmi. With the single family i could possibly get a jumbo and only have to put down 10% of which we will only put 5% each.

Brendan

Thanks for the reply. I'm actually renting a house at the moment and rent the rooms to cover my rent. Never had a problem. Run it like a business. Not the most comfortable living situation but it's helping me get where I want to be and that's all that matters.

Hello BP,

I would love some feedback on which direction I should go. I love the idea of buy and hold and thats ultimately I think the direction im heading. I have a few options and i have about few hundred thousand to play with. The first is buy four units with an fha but have to pay omi. Second is to buy a single family, live there and rent out the rooms to pay the mortgage. Third is to do a flip with a friend who is a contractor. Fourth is to wait until my uncle builds another multiunit building where i can easlly double my money if the market is anyway decent. Im in san francisco so that might not happen for years. Right now i think the single family with 4 or 5 bedrooms is my best option but should I put down 20% or try 10% and possibly buy a second. There are some single familys in the outskirts of sf around 6 to 700k near a few colleges. Any help would be greatly appreciated.

Brendan