All Forum Posts by: Josh Mitchell

There are alot of factors to determining this price, and what you are looking to get with it, but a quick formula I use just to get an estimate is (Home Value/1000*3.5) Usually can give a pretty accurate estimate to what you should expect to pay.

@Luis Rondon Depends on what your financials look like and how much you have to invest. Some things to keep in mind are things like Loan to Value, Debt to income ratios, etc. If you are looking to purchase a rental property usually 20-25% is required for a downpayment.

@Angel Cintron Click on the "Learn" tab at the top of the site, and read as much as you can about the niche you want to get involved in. The resources have been put into place on this site, and it has helped me and many others tremendously!

Good luck!

@Theo Elias it means someone thought your post was valuable and they in essence "liked" it

@Scott Stelzer welcome to BP neighbor! Great place to learn and network!!

@Abou C. depends, if you go FHA you have to live at the property for a specific amount of time. Also, if you do put down 20% you won't have to pay the PMI that comes with the FHA loan. PMI will be on the loan for the life of the FHA loan. I would tell you to do 20% down if you can, but if you plan to live there, and rent the other 3 units, the rents could cover the costs involved in FHA loan and then you could move and rent the 4th unit. Make sure you run the numbers to see. If you are going with a partner, this could mean that your individual CF could be very little for a while.

@Abou C. FHA also comes with higher PMI percentages, but just putting 3.5% down might allow you to free some cash up for another property. Let the tenants pay all the fees, just will eat into your CF initially...

Actually just read an article mentioning that Pilsen was the next up and coming neighborhood in Chicago @Ryan Canfield May be able to buy close to home and get some value for it...... At the very bottom they actually do mention Humboldt Park as well.

http://www.nbcchicago.com/news/local/Real-Estate-Site-Pinpoints-Pilsen-as-a-Hot-Neighborhood-270046801.html

Like @John Weidner said @Michael Garcia what neighborhood is this in? I'm not sure I would go in that much under, but if you can make it work, then more power to you. Just could cause some of us 'risk management' people a huge anxiety attack! Ha!! Good luck and keep us posted!!

@Manny B. You are in a great place to learn and network! My parents just moved to Mesa with the State Farm relocations going on.

Good luck in your REI journey!!