Hey Everyone ,
I am looking to invest extra income in rental properties, I would appreciate any advice on the following...
Currently, I am seeking to puchase a duplex in a small town. Dispite the relatively smaller size of 7k residents it is a growing area and rentals are in demand.
I am looking to make an offer on a 2 unit 2bd/1bath duplex. This duplex is in need of cosmetic repairs but otherwise in well maintained condition with a newer roof and windows. The duplex has a strong rental history and the rent is slightly below comparable rentals in the area.
The initial idea was to use my preapproval to take a FHA loan on the duplex. Put down 10% to avoid PMI and live in one side of the duplex for at least a year. The other side's rent would cover mortgage, taxes, and business insurance.
My Questions
*If you plan on moving out and renting the other side in a year or two would it make more sense to do a traditional mortgage than to have to refinance?
Other Questions
* In your experience is better to direct excess cash flow to paying off rental mortgages early or leveraging the extra cash for investment opportunities?
* I have been looking for a multi-family opportunity for 2 years and notice almost all are on the market for a long time. Do you see this reflected in your area, is this due to a smaller pool of interested investors?
* Any other advice for 1st time investors?
Thank you in advance for your time and feedback!
