All Forum Posts by: Jason Muenchow

Any other thoughts ??

@Charles Mullins I dont think theyre grossly underpaying by too much. a couple hundred at most (combined total). Theyre good tenants and don't want to scare them off. 

@Michael Cohen Im leaning that way...

@Chris Seveney Thank you so much for the response. The property manager thing has crossed my mind, but I feel that since im still near the start of my investing journey...every cent I can get would be helpful for growth. So the sacrifice of not having a PM is hopefully worth it in the end. 

To your question about if this area can find similar returns....I honestly don't think so. I think we bought fairly well with this one...the 4 plex my wife and I just closed on is actually 2 duplexes. A quick run down on those numbers....each unit brings in 925/month and the PITI combined for both duplexes is 2k. Everything in the property was redone in 2012. We got VERY lucky finding this place and it took us about 8 months of daily trials and tons of offers. So could we find other places?..maybe..are they easy in the area? nope nope..but possible.

I just think I might be able to turn this triplex which brings in about 1k a month cash flow...into 2k by getting another FHA 3.5 percent down (on a good deal) and then buying 1 or 2 more properties with the remaining money. Just don't know if thats a pipe dream and I should leave it as is.

Hello everyone. Thank you for taking the time to read my post. I've got a question regarding a triplex I own and would appreciate suggestions on what I should do with the property. Here are the basics in regards to the situation I'm facing. 

The triplex was my first ever real estate purchase. The property was purchased in Dec/2015 for 270k. I used an FHA loan with 3.5 percent down (3.75% interest rate). The property required about 15k in repairs with me doing the majority of the work. The property was built in 1977 and is in overall decent condition for the age. Roof has about 8 years of life left according to the inspector (when I purchased the triplex). The property has had all three units rented out since I purchased the property (I lived in one unit for a year and rented it out as soon as I moved out). Current rents -

Unit A - 1250/month - 3 bed/2.5 bath 1350 square foot

Unit B - 825/month 2 bed/1.5 bath 1000 square foot

Unit C - 1150/month 3 bed/2.5 bath 1350 square foot

Tenants pay all utilities and no HOA

Unit A and C are identical layouts. Unit A is the unit I lived in and is the newest tenant. Unit C and B are tenants I inherited when I purchased the property. They both initially had very low rents 700 - B / 999 / C. Im raising them gently, but I plan to get C up to 1250 next lease and unit B up to around 900 next lease. 

When I put unit A on the market to rent it out, I received tons of calls and rented it out within a few days. The property is in a mostly residential neighborhood in Clearwater, FL. I almost regretted not trying to get more than 1250, but I got a good tenant soooo im ok with it.

So that is the basic...Im trying to figure out WHAT my options are and which I should pick. I don't feel I'm a newbie in the area but I'm for sure not a seasoned pro. My wife and I live 1 hour south of the property in a 4 plex we just purchased in Bradenton, Florida. So the drive to this property is factoring into the equation for me as well. The property is bringing in a decent cash flow for what I put into it...However I figure I can sell this property for 375k give or take 25k in the current market. 

Option 1 - Should I keep the property and just be content with how the property is producing?

Option 2 - Sell the property and use the money to purchase another FHA property with 3.5 percent down and use the remaining money to buy 1 or 2 more ADDITIONAL properties. Turning 1 property into 2 or 3 (added bonus is I could get them closer to where I currently live)?

Option 3 - ?????

Any input or suggestions on the best course of action would be greatly appreciated. I should mention I manage the property myself and really enjoy doing it. My overall goal is to get more units. If I'm missing any crucial information on here that would help you draw any conclusions, just let me know. Ill do my best to respond quickly. Thanks again.

Jason

Same lender. Its pretty typical, I talked to several different lenders ( to see where I could get the best rate ) and all of them stated they could do both loans.

Thanks Ken! This is technically my second house hack. We live in the Bradenton/ Sarasota area of FL. It can be hard to find decent mf properties that aren't on the water here too. It took us over 8 months to land these! Just gotta keep trucking along ! 

In one week I'll be closing on my 2nd and 3rd properties. I just wanted to say thank you BP for providing information/confidence to move forward getting my own properties. Ill post the numbers below! 

-Both duplexes are side by side.

-Each unit in both duplex is renting out for 900/month

-My wife and I plan to live in 1 unit for a year and repeat the process

-New everything in 2012 (windows, roof, doors, AC units, water heats, showers, kitchens).

-165k Purchase price - 3.5 percent down - 3.75 rate - PITI (with mortgage insurance) 1100/monthly payment - Seller contributing 5k towards buyer closing costs.

-163k Purchase price - 25 percent down - 4.625 rate - PITI 880/monthly payment - Seller contributing 3k towards buyer closing costs.

-Total PITI = roughly 2k

Gross rents = 3600/month

Total cash invested = Roughly 53k

Thank you again to everyone on BP who help others on their investing journey. 

Short and sweet. Thanks much for the reply. 

Good afternoon everyone. I hope you guys are having a great weekend. I had a question regarding FHA loans. My wife an I currently own a triplex which is a fairly good performer. However, we have a good amount of equity in the property. Is there a limit on how many FHA loans you can get? I know you typically can only have 1 FHA loan at any given money, but thats not the question. Can we sell our triplex and immediately get another FHA loan for a different property? Thank you for your time.

Jason

@Gordon Forbes I think you're stretching a bit calling him a mentor and helper. He is just one of my resources. I don't know who you're quoting with "poured into you", but that doesn't describe this situation. Dare I say you didn't even read the post? I probably shouldn't because you missed the mark, but let me respond to each of your points....

-I'm a Realtor (no need to take myself out to dinner)

-Relationship with lender 1 is business one and isn't even close to a mentor. 

-There are actually two loans here. The pure investment conventional property and an FHA loan.

-I'm not sure what you're talking about in paragraph two of your post.

That being said...the difference is closer to 60 dollars a month between the two loans.  I appreciate all the responses and the messages. Everyone pretty much is on the same page about going for the better deal. Thank you very much all.