All Forum Posts by: Account Closed

Thanks for the quick response and encouragement! I will look into the comps around town and see how this house stacks up. I also believe that I would be able to get them to come down a little on the price. That would help out my cash flow and appreciation! 

Hello All,

I am 23 years old and I am on the fence about jumping into the world of real estate investing. I currently live at home with minimal expenses. I have a decent amount of money saved up and the only major expense I have is a car payment every month. Knowing all of this, here is my example:

I got pre approved for a home mortgage up to $100,000. I can put as little down as 5% (obviously I will be paying PMI monthly). The multi family I am analyzing is currently on Zillow for $99,900.

Home Price - $99,900

Estimated Closing Costs - $3,663.17

Estimated Initial Repairs - $3,000 (cushioned amount)

Total Loan Amount - $94,905

Total Cash Needed by me - $11,658.17

5% down payment

3.49% Interest

30 Year

Monthly Income (625 per side) - $1,250

Annual Taxes - $2,175

Total Monthly Mortgage and Tax - $652.45

Monthly Insurance - $50

Water/Sewer - $100

Vacancy Rate (8% of monthly gross) - $100

Repairs and Maint. (8% of monthly gross - $100

Monthly Cash Flow - $297.55

Gross Annual Income - $15,000

Annual P&I and Tax - $7,829.40

Annual Utilities/Insurance - $1,200

Annual Vacancy - $1,200

Annual Repair/Maint. - $1,200

Annual Cash Flow - $3,570.60

ROI - 3.27 Years

Please let me know your thought!! 

Have any of the people who said it can be hard and stressful considered hiring a property manager? Do you think it would be worth it to relieve the stress and constant work? Or do you think PM are to expensive. I would love to hear from the community in this scenario! 

Thanks for all the feedback. My plan is to use an FHA loan to buy a duplex, live on one side and rent the other. Than after a year buy another duplex and do the same thing. I think during those times I will manage them myself. But after the year is up on the second one I will hopefully buy my actual home. Than I will start buying buy and holds and once I get a few, I may look into PM. In all of my analysis I'm going to include 10% to ensure I still cash flow with PM. Thanks for all the input everyone!

I don't have any properties yet but my goal is to acquire buy and holds while I work my full time job. I am wondering if anyone who does this has advice or comments about this scenario. Is it harder than you thought? Do you use PM? How many properties do you have in your portfolio? Etc.

I would like to see a copy of the file. Thanks in advance 

As an inspiring real estate investor, I would love to hear from some successful investors. If you could go back, what advice would you give your young self? 

Thank you for all the support! 

@James Wise I got offered a Buyer position at a manufacturing company in Brunswick! I am still living in the Parma area though. I plan on investing on the west side as well!

@Lumi Ispas that was my plan. I love the extra income that multi families can bring and the living for free part! My only concern for multi family is all of the headaches that could come with it. Examples being tenants complaining about other tenants, living so close to complete strangers (I guess it's only for a year), and a higher rate of tenants coming through. The main reason I would get a single family is for the stability of the tenants (hopefully) and less problems (also hopefully). 

Hello BiggerPockets, 

I am excited to say I got offered a full time position in my field of study after graduation! This now means I can start checking the market for my first investment! I am from Cleveland and looking to invest somewhere around here. My goal is to find a multi family or single family that works well with an FHA loan. I plan to live there for the year than hopefully buy my actual house (or possibly rinse and repeat). I can't wait to start investing at such a young age (22)! I want to thank you guys in advance for all of my future questions.

Thanks, 

Dave 

I know most of you have access to the MLS or have a realtor that does. What I am asking is how do you search for homes to analyze when you don't have access to it. Trulia and Zillow can sometimes be misleading and show older properties that have already sold. I want to be able to see newer listed houses and their prices so I can perform better analysis on the houses. Again, I don't have access to the MLS and I don't want to get a realtor because I am just trying to analyze different houses and areas around me. I'm not ready to pull a trigger any time soon.