Hello BP Family!
JUST WANTED TO SHARE MY EXPERIENCE SO FAR on my 2nd purchase but 1st small multi.
It has been awhile since I have posted anything or asked any questions on the forums. I have been preoccupied and extremely motivated with my First duplex live in flip or BRRRR, not sure yet.
The home is on a cul de sac, side by side duplex. I think the neighborhood is a strong B- in a working class area. Nice Main Street walk about, and commuter friendly town. Very diverse ethnic community as well.
The renter has a 2.5 bedroom, 1 3/4 bath, updated kitchen and bathroom when I purchased the home. The house sits on about 1/2 acre. I also acquired the tenant which was extremely stressful in the beginning but happens to be the best tenant ever (fingers crossed). The basement houses seperate washer and driers. My family and I are living in a 3 bedroom, 1 3/4 bath, descent floor plan, but totally outdated. Which is why I’m so preoccupied. However, at this moment I am doing the siding on a 38 sq home, by myself, trying to button up the home before winter. City water and sewage, which I pay for both units, seperate gas and electric. There is a unutilized 3rd floor, which I plan to seperate to both units eventually. Hopefuly it will increase the rent by $200 at least. I recently changed both water heater at $900. I have an updated on demand heating system and the tenant has old forced air but new central air.
Quick overview:
FHA/203K stream line LOAN at 4.25%
purchased a duplex for $299k in Boonton NJ.
203k at $19,800 on chimney repair, roof, and misc
PITI + MIP $2,771
Rent: 1,700
First water/sewage bill is $78 per quarter
Estimated rehab cost is around$50k ish and I am hoping to do all the updates within the first year.
Once I get all rehabbed the vacancy, cap ex, and repair will be about $500/month.
I want to refi the finances. Then I’ll make the decision to stay, 1031, and/or hold and move onto the next. I believe the rent on the side my family and I are living in can get me $2,200.
The conundrum is that I’m playing with speculations on the housing market. I know I acquired the home at a decent price but not the price that I feel will give me good cash flow or a good ROI. Not sure if I am calculating those numbers correctly but the rental comps are within that price range. Plus accounting for all the closing cost after the refi is such a blur to me at this point but I WILL STILL MOVE FORWARD.
I am listening everyday to BP pod cast and reading the suggest books. My issue is that I need to get out and network myself with like minded people, find a mentor or maybe become a example for those who are just starting out like me. It’s hard with 2 kids, a wife, and a full time job.
My Goal is to acquire 4 more properties. I need kids college funds and pay for my wife’s and I retirement. I find it to fascinating that people can scale a business as they do which is my next step in my real estate career.
Thank you for all those that read this. Any inspiration is accepted. But what I’m looking for is CONTRASTIVE CRITICISM, so if you got it please reply!
Thanks again! And for those who are starting. My advise is to JUST START!!
