All Forum Posts by: Cameron Sume

Wow, I really appreciate your response. I think I just got to so focused on not getting rich right away that I forgot about all of the other benefits of real estate.

I'm looking to start my investment journey by purchasing a duplex, living in one side and renting out the other. I only have enough for an FHA loan which requires a 3.5% down payment. I'm having a hard time finding places that will provide a positive cash flow. Does anyone have any advice or experience with this?

Here are some numbers to let you know what I’m working with:

Mortgage - $3,400 per month

Rent - $1,800 per unit

This leaves about a $200 revenue but does not take into consideration all of the expenses etc.

Clearly, this is a bad deal as it would create a negative cash flow. But I was wondering if we should continue to pursue the 3.5% down option and bite the bullet for a few years until we can refinance the loan or if we should start to save enough for a conventional loan (20% down). And advice helps, thanks!