@George P.
- I thought that $100 per door per month was pretty good based on Brandon Turner's deal analysis videos. Does this still apply or is this maybe outdated? I was also looking into some first time homebuyer programs that allow me to put only 10% down (so 60k instead of 120k on a 600k property. The numbers are more in my favor with only 10% out of pocked + closing costs but do you think that this lower amount would be more attractive?
@Dave Savage – Reserves are definitely met. I have just over six months in savings that would pay for the mortgage costs and expenses. If all tenants left and I was stuck with the entire mortgage and expenses, my salary from my full time job would be able to cover
-I changed the maintenance percentage to 7% and ended up with cash flow of $254 per month.
-I will managing the building myself for sure because I will be living in the smallest of the three units. The area has seen increases in home prices and rents historically because of the ease of access to public transportation and highways, good schools, safety, relative low taxes and proximity to parks. I am also looking at this as my first step into real estate investing so I feel that the lessons I learn, and skills learned are vital for the next deal (which by the way will most likely be out of state due to crazy new York city prices – so definitely will be using a property manager)
@Tony Cavalli I tried using it but it wants me to sign up and become a paying member. I don’t think I am ready for that just yet.
@Ned Carey
I used the 50% rule at first and went deeper when it seemed to be one of the better deals in the area. I got the annual tax payments from the city tax website. Tenants will pay their own electricity and gas however based on the set-up of the house, the heat is typically paid by the landlord (me!). I would definitely ask the current landlord for income/expenses and schedule E if this deal makes sense to ask.
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Something I didn’t mention before is that I would living in one of the three units (probably the smallest so I can get the most rent from tenants). The single most biggest factor of me finding a home in NYC is to move out of my moms house. If I was to buy a condo in a nice area the price would be at a minimum $550k so the main reason for me even getting involved in real estate is to ease the burden placed on ME when purchasing my first home. If I can find a house where I will pay less than I would if I was just buying a condo I would be happy so I may be looking at ‘this’ first investment as more of a personal home than an investment. Does that make sense??
Sorry for the long post guys, I just have so many factors going in to this and I want to make sure that I don’t screw up my first steps into home ownership. Thank you so much
