All Forum Posts by: Japheth McGhee

@Tesho Akindele

Homer, Alaska! Short housing shortage up here, in a heavy but steady growing tourist town. If you build a $400,000 four-plex you could cash flow $2000. That is if you get the location and rents right.

Thank you so much guys! Its a lot of fun just throwing out ideas and analyzing them to see what would work. I will be further looking into this and keeping in touch!

I currently live in Homer, Alaska and there is this 6-plex/detached for sale at 3771 W Hill Rd, Homer, Ak 99603. Its listing price is 795,000 currently, and has been on the market for 271 days. Would it be foolish to contact the owner to consider seller finance? I don't have the cash to put as a down payment to refinance, so that wouldn't work, unless there was another way I don't know of. Ive plugged in all the numbers, including property taxes annually, home insurance, and my rent income from it all would be around $6500-7000 per month and so it works as a cash flowing rental. How would I be able to acquire such a property? 

So fair warning, very much a noobie at this whole investing thing. But I was wondering in my situation if it would be good to start building small studio rentals. I live in Homer, AK and so prices of houses are WELL above $300,000 easily so rehabbing is out of the question. The housing is very limited hence the high prices in market, so the demand for rentals is high in the area I’m from. Plugging in the numbers in the rental calculator a 250,000 loan to build 2 studio houses seems pretty profitable. And I’m also actually a base line construction worker but I have many connections that can teach me how to put lots of sweat equity into it all. Is this all worth it? I’m very new so I’d like to do something that I can manage locally so I can learn all the ropes. Thank you lots for the grace and wisdom.