All Forum Posts by: Elisa Sacchetti

I found a quadruplex with 8 bed 8 bath, so each unit is 2 bed 2 bath. I found it on the MLS and it said that estimate rent is $1000, but on the BP rental estimator it estimated $2175 at a low confidence level. Hypothetically does this mean, the whole property will rent for $1000-2000 per month, so each unit is $500? OR does this mean each unit is $1000-2000 per month so total rental per month is 4X what it says on BP or on the MLS? Just want some clarification, so I do the math correctly. Thank you!

Hello! I am very excited to start my real estate journey with purchasing my first property soon. My goal is to purchase a property within the next 6 months. I just got my first full time job, so I am trying to save up to pay 3.5% on a duplex and use an FHA loan to finance. I understand that if I use an FHA loan, I will have to pay an upfront mortgage insurance premium (MIP) plus monthly mortgage insurance. From my research, I found that the MIP should be 1.75% of purchase price (right?), but I haven't been able to find a good number for the monthly mortgage insurance. Some places say 0.85%, but others say higher and other lower. What would be a good percent to use? I am trying to analyze properties with precise calculations of the FHA loan, but I am having a hard time analyzing a property using the rental property calculator on BP. Do I need to add an extra 0.2% on the interest rate if I use an FHA loan? Also, I am working in my first full time job, so would I even be qualified for the loan since they check the last 2 years tax returns and I worked a part time job in college (making very little). Does anyone have any advice on how I can properly analyze a property on BP with the FHA loan and any advice on how I should go about with my goal?

I am new at analyzing properties whether they would be a good or bad investment. I used up all my free trials on the Bigger Pocket calculator, so I found a spreadsheet on Bigger Pockets to help me analyze a deal. This duplex was already contracted, but I wanted to evaluate it as if I would buy it.

Duplex 6 bed 4 bath in Athens GA near UGA (idea to rent it out to college students)

Purchase price $189,900, Est. Rent is $834/month (not sure if this is per unit or overall for the mortgage) Property tax $140/month, Insurance $52/month, 30 year loan at a 2.95% interest rate if I lived in one of the bedrooms and rented out the other 5 bedrooms. I was thinking of charging $500 per bedroom *5 = $2,500 rent per month.

I was calculating 20% down payment, 5% vacancy, 0.83% property tax, 1.5% Closing costs, 10% maintenance and repairs, 10% CapEx, and I assumed $150 a month for utilities (not sure how to calculate this). What else did I forget for expenses?

All the nearby homes are selling or worth $250k. The inside would need a lot of fixing and cleaning, so I estimated $15k (might be too little or low I don't know I didn't see the inside), but the outside is good. 

The spreadsheet I used estimated $708 monthly cash flow with a CoC return of 13.54% and total ROI of 19.19%. I feel like this is too good to be true, so I feel like I forgot to factor something important. Please help out if possible!

I am a senior in college in GA right now and I have been interested in real estate for many years now, but I wanted to get a degree first. I am using this summer to educate myself on real estate, so by the time I graduate in May 2022, I can get a full-time job and start investing. My resident assistant job right now during the school year gives me free housing and meals at the dining hall, but I get no income and by contract I am not allowed to obtain another job or else I get fired. That also means I have very little money right now and will have very little by the time I graduate. The good thing is I will have no debt by the time I graduate. 

I've been reading many books about real estate and investing, and I have been using this time to attend seminars to learn more about finding properties.  I think I am most interested in house hacking where I can (hopefully) find a duplex, or a house/apartment that I can rent out to tenants and pay little to no rent each month. My problem is that I have very little money (broke college student) and I am unsure how to obtain my first property with little to no money down. Should I obtain a full time job first, THEN get a property. OR does anyone understand the rules with obtaining a loan with little down payment? I am feeling so overwhelmed with also where I should be looking because I'm willing to transfer also to another state. Any advice?

Side note: My original plan was to graduate with my Chemistry major and go to Physician Assistant school, but now I am rethinking that ( or at least postponing that dream) because I really don't want to take out a $100k loan when I also want to start investing in real estate earlier rather than later.