All Forum Posts by: John K.

I usually avoid duplexes if they don't hit the 1% rule, it's the very first thing I look at.  However since you live in the other half, so you could control your neighbor it may be worth it from a piece of mind angle, but not as a great investment.

@Sean Dulcio - I dove into duplexes right out of the gates putting 20% down and not living on one side  but renting out both sides - I wanted until I was 25 though, you have time on your side by jumping in at 19.  The one advantage I had was I felt like since I was 25 and had general business experience - I could "talk the talk" with my banker (who I had a excellent relationship with) and they took me 100% seriously.  I'd suggest going the extra 10 miles on professionalism.  When asked about specifics like debt coverage, I could fire off a number with 2 decimal places ("1.76").  At a recent meeting with a commercial lender, when asked about plan for leases I had a mockup wire bound booklet with me.  My bankers response was along the lines of "We don't even see this level of organization and professionalism from our largest customers."  

Good action steps, I'd suggest going to a community college and taking classes like Accounting (and just keep going, learn as much accounting as you can), Business Law and Finance classes.  Know all the terms like Debt Coverage, Internal Rate of Return and all the future value and present value math so you don't just have the numbers but truly understand them.

@Sean Dulcio - is just play it by ear after a year or two when you move onto the next one.  You will learn more than you ever think possible by just buying your first place and it will help you determine what you want to do next based on what you learn.

I'd look for a 4-plex and move into one of the units, put 3% down and make the goal be to have the 3 other units cover all your expenses. Then reevaluate in a year or two for what's next.

I always get frustrated with the auction sites. It's just a whole different game to play.

If you have experience go right to the commercial department. Commercial loans on rentals are easy as long as debt coverage is greater than 1.25 on the property you are borrowing for.

I wouldn't only because there are 1,000,000 things that could go on a lease. I could easily put together a 50-100 page lease with everything that I COULD think of - but have to keep it reasonable for tenants. The other clause that would typically take care of this could be a noise clause saying that tenants can't disrupt the peaceful enjoyment of the property for others. Also the clause about following city ordinances (if fireworks are banned in your area).

I would cash it, then follow up. Rent is the most important thing so at least you got it and on time. I have had something similar happen - and just added the additional person to the lease at renewal which was coming up (after they pass your application process). At the end of the day as long as the tenants are happy, paying and taking good care of the place that is the most important thing.

Metal roofs are way too expensive - I'd say ROI is not there. Just put a regular old roof on, and replace it every 15-30 years depending on how it holds up. Countertops, and other interior items could have a payoff if the area demands higher rents for premium features. Just gotta run the numbers.

No!  Totally different in real life, everything always costs way more than you think and you end up making way less.  I swear on TV they just make every deal look good!