All Forum Posts by: Eric Anderson

If I use the basic 50% rule the noi is 12000. If I rent out 2 units for 700 and the last for 600 (which includes me in it). Lets say for the sake of pmi we use 55% then we get 10800 NOI. Keep in mind, this is while I'm living there.

@Matt Yates, no I will manage the property for now since I will be living there. With 6k down I'll have 4k to spare, so I can cover payments for quite some time. With a fulltime job income as well. The area will attract both university students as well as young professionals. Not a section 8 property.

@Michael Moikeha I'm not sure what you mean by cap rate of 7.8%. Thank you for the resource. Rentometer rates the rent about average for the area. I also plan on renovating a little to attract more renters.

Thank you everyone for all the advice thus far. Very helpful.

This is for learning atm. I understand the numbers will be "useless" 8 months from now.

Hello,

I'm going to be jumping into a buy and hold multifamily home in very early 2015 and was just evaluating some properties. I've been using the 50% rule for most of these (which I could be doing wrong) but I have 1 property that looks fairly promising.

A triplex listed at 135k.

2 buildings and average rent is listed at $700 for each unit.

Each unit is 2 bed and 1 bath.

I would be putting 6k down and using another 2k to cozy the place up via paint/ fixtures ect. To help it rent faster.

Here is the catch. I'll be living in 1 unit (the stand alone unit in its own building) with 2 friends each paying 300. So, it would cost me 100 a month to stay in a unit. We don't mind rooming together as its what we already do. Now, I know there is going to be roughly 135 a month for mortgage insurance as well.

Right off the bat, does this sound like a good idea?

I'm not looking to make HUGE profit but rather steady profit and a place that I'm not pouring rent money into.

ZIP code is 85008 if you want to evaluate the area.

Would it be possible to have a renter sign a lease prior to you purchasing the property that has a condition that states something along the lines of "This lease/contract is void if I am unable to purchase this property by date xx/xx/xxxx"

Aside from that, it would be a normal lease. Will this help when approaching a lender for financing if this is even possible?

Thank you all again for the responses. Very helpful information.

I will manage to get 10k by January so I'll renew my lease for another 6 months and try to get myself a 5% down multifamily home. OO is something I'll have to start out doing. I want to leave some breathing room in my capital in case of an repairs or emergencies.

So its possible to have a 10% down and not have the property OO?

Hello,

Is is worth it to buy and hold if I don't have money for a down payment and can manage to get a 0 down duplex or triplex and the deal is right? Is it even possible to get those types of homes 0 down?

If not, what is a good time to buy in? Is it worth the wait for a couple years to save for a 20% down payment to obtain a conventional loan?

I am very ambitious to jump into the industry and my rental lease is up in 2 months. Should I buy a single family for myself while I save so I can rent it out later or renew a lease and save more capital?

Thank you in advance