All Forum Posts by: Joe Fornasiero

I purchased my primary residence with a USDA loan back in January. I've been wanting to start a rental portfolio for awhile and was considering renting out my primary residence after a year. I believe it would rent for around $1500/mo. Current expenses for PITI comes out to $850/mo. The house was completely gutted and renovated prior to my purchase so everything is brand new. I'm considering purchasing a duplex as an owner occupant with an FHA loan live there for a year then purchase a primary residence a year later with 20% down. I understand the cashflow may be tight due to the low financing amounts but as a wealth building tool I feel that this may be my best option to get started with rental properties. I'm 25 years old and have mainly focused on index investing in the stock market over the past 6 years. I would like to diversify into REI. I'm looking for suggestions or recommendations from people who have done something similar. Thanks!

I'm looking for input on Redford as an investment location the property is a triplex located at beach daily and grand river. West of telegraph and north of 7 mile. Has anyone invested in this area and know if it's safe? The property looks in decent condition and since its on a main road I would think there would be less safety's concerns. Any input would be appreciated!

I have recently found a foreclosure in my area for around $65k. It's been listed for a month. It could use the basic cosmetic updates- paint, carpet, clean up landscaping etc. the property is 3 bed 2 bath 1,700 sq feet with a large 2 car detached garage. Based on rental comps in the area I believe I could rent it out for $900 a month. Based on the numbers I would need to get it for around $40,000 in order to meet the 50% rule (this would provide about $400 a month in cashflow if I manage it myself. It would also pass the 2% test. Has anyone had experience with banks accepting an offer so far off the asking price? This would be my first rental property.

I'm still looking into current and future land uses. The community seems to be growing but it may be several years until it expands to the point of where the properties are located. In terms of topography the land is flat and all areas are usable the length on both sides is 353' and width is 652' the homes are spread evenly on the property to the extent that you would not realize they all fall under the same property unless you were looking to purchase it.

I've recently found a potential opportunity to purchase 3 duplexes on 5 acres for $275,000. All homes are in good condition with long term tenants. The rents seem low all six units are renting out for $600 a month. The property cashflows around $500 a month when taking into account the 50% rule. I feel the rents could be higher but the units are in a somewhat rural area. I have the ability to partner up with an experienced investor on this. Im trying to determine if this may be too much being a new investor and if I should start off with something smaller. Any insight/experiences would be appreciated.

I have been researching and developing my real estate investment strategy for over a year. I'm looking for insight regarding financing. I currently have a primary residence with a USDA mortgage on it. I was considering converting this to a rental after living there for a year. I was wondering if it's possible to finance a multi family property with an FHA loan as an owner occupant for my next property and proceed into purchasing rental homes with 20% down in the future

I'm looking for input on a deal I have found recently. What are some of the pitfalls people have experienced investing in condo units? This would be my first investment property so I'm looking to start small and work my way up. When taking into account the 50% rule I would be right around break even in terms of positive cashflow. I think the property would be paid off within 5 years by taking the surplus and applying it to the principal. I have always invested in stocks and am new to REI. If anyone has any experience with condo rentals I would appreciate any insight!

Property details:

List price: $40,000
2 Bd 1 Ba 733 sq Ft in move in condition
Taxes are $995/yr
Association fees are $175 a month
The same units in the area rent for $805/month

Total costs @ 20% down 30yr fixed

$440/month including P&I, taxes, home ins, and association fees.

$365 monthly cashflow (not taking into account the 50% rule) 

I have found a home that I am interested in purchasing. I'm planning on living there for about 5 years then converting it into a rental property. My I'm trying  to determine the best route in terms of financing. If I wanted to convert to a rental would I need to refinance the RD to a conventional and potentially get stuck with a higher interest rate? How does RD compare to a conventional in regards to long term total amortized costs?

@Elizabeth Colegrove 

 could you expand a little more on the 5% conventional loan I haven't heard of those. Are they specific to a certain type of lender?  

On a side note I would also like to get everyone's opinion on purchasing a 4 unit multi-family home as opposed to a duplex. I realize there are several Pro's and Con's to each but one point that stands out to me the most with the 4 unit is spreading out the risk of vacancy over 4 units as opposed to 1 or 2 (depending on if the property is owner occupied)  Is there one you feel would be more beneficial to own as a new investor entering the Real Estate market?

I have been considering purchasing a 4 unit Multi-Family home as an owner occupied/rental investment. The numbers seem to workout very well at this point. Current asking price is $200,000 and the gross monthly cash flow is $3,200. Once I move in that would drop down to $2,400. I am looking for input regarding how much I can expect to set aside for repairs, upgrades, etc. The building looks to be in fairly good shape with no major issues. Looking for advice from anyone who has experience in multi-family properties