All Forum Posts by: Dustin Reynolds

 Rent: $700

Mortgage/insurance: $ -250

Water: $ -60

Net: $390

I’m not factoring in 10% for maintenance and vacancies to get my net. In two months my tenants renew and rent goes up $20. I see this as top of the market for my 2br - 1 ba.

The bigger question is:

Do I sell my SFH, take the equity and down payment to put down on a MFH?

Between the sell of the of the SFH and the cash I have on hand, I could buy and rehab the duplex.

I suppose I could use an unsecured loan to buy and rehab the duplex. Once the sell of the SFH, pay off the loan.

@Joe Villeneuve thanks for the reply. Would you keep or sell the SFH?

I’m sure I’m not alone in this...  I’m obsessing Day and night over finding the best deal.  

I have a SFH that was my starter home 10 years ago. I bought it for $40k, the loan is down to about $25k. I net $400 a month from the house.

An off market deal presented itself to me. A duplex that rents out for $1,100 a month.  They will sell it to me for $22k, it needs some roof work, couple windows, interior paint and flooring.  I’m thinking $4-5k in repairs maybe slightly more.

I have $8k for a down payment, I planned to get the rest of the money from an unsecured loan from the bank.  Higher (6%)interest rate and its a 5yr note.  Payments would be around $300 a month all included... netting around $800.

The question I'm obsessing over is, do I sell my SFH and put the equity toward the duplex?? I figured the house should sell at least for 40-45. I feel like I'd rather have one property free and clear with a solid return. From there on out, stick with MFH's.

OR do I keep the SFH and net roughly $1,500 a month with about $600 in payments. Gut says sell the SFH and start over nearly debt free.

Obsessing 

@Frank Patalano most good Multi family deals I have found, Require a roof soon and that’s a problem. I have the 20% to put down as a down payment but I will not have the $10,000 needed to put a roof on the house. It seems like the landlords around here and probably everywhere else run their properties into the ground and let somebody else take the hit. I can’t blame them for their Strategy but it sure is making things difficult. Even with 20% down banks don’t seem to want to lend the money due to the roofs Condition Or they’ll make the deal if you agree to fix the roof within 6 months.