All Forum Posts by: Irving Casas

@Jessica Parker

Hi Jessica! I've read of saving 5-10% for capital expenditures as well. Preparation is key. The big ticket issues will come up it's inevitable, however if I save every month I wont be surprised by a big cost down the road. I like this duplex because it just got a new roof. During my inspection I'll make sure to check the costly items closely,I'll be ready to ask for a price reduction if one of these is at the end of its use. Thank you for sharing you knowledge, best of luck to you! 

Hello BPers!

My goal for 5 years has been multifamily investing. 

My friend house hacked his home. I've rented a room from him($700/month) 3 years to keep my expenses low. 

I've been able to save 20% down. I placed on offer on a duplex listed at 400k. I offered 390k and asked for 7k in closing credit. 

The duplex has 2 units. Each unit has 1 bedroom and 1 bathroom, 800 sq/ft per unit. The duplex was built in 1959, in June a new tear off roof was installed. 

With 20% down my PMI would be $1336/month

Property taxes $337/month

Insurance $65/month 

One unit is rented on a month to month basis at $1,025. Landlord(I would) pay for all utilities except electricity. 

My plan is to convert one of the unit's dining rooms into a bedroom. I would live here for 1-2 years. The other room I would rent out at $800 month.

If everything goes according to plan, I would cash flow this property at $87/month. Most importantly I would learn to manage a property and I would not have a rent payment.

What other expenses should I be saving for every month? Any advice would be greatly appreciated! 

@Michael Chung

I'm a real estate agent in Oregon. I do recommend that you apply with a second lender before putting offers in. In Oregon once the seller and buyer have mutual acceptance, the buyer has to stay with the original lender. If the buyer wants to change lenders after mutual acceptance the seller has to agree. Lenders have different fee structures, so it's smart to shop for the best loan before shopping for an agent or home. If you've already picked an agent, they could also refer you to a good lender.

Michael-

I'm a real estate agent in Oregon. I do recommend that you apply with a second lender before putting offers in. In Oregon once the seller and buyer have mutual acceptance, the buyer has to stay with the original lender. If the buyer wants to change lenders after mutual acceptance the  seller has to agree. Lenders have different fee structures, so it's smart to shop for the best loan before shopping for an agent or home. If you've already picked an agent, they could also refer you to a good lender. 

@Tony Cimino Thank you for posting the numbers for you first BRRR. I haven't done my first investment deal, so the numbers really help! I work as a real estate agent in Portland, Oregon. I have dreams of investing in a flip or buy and hold home in the Midwest.