All Forum Posts by: Mark Douglas

Hey BP,

I've got a potential deal I'm considering: 3 units (all 1/1) for a good price (still have to test drive the neighboorhood). All 3 units are rented, but I'm going FHA, so I need to live in one of them.

If the seller can't/won't vacate one of the units before closing, what are my options?  

Side note: This is my 1st property, and I'd love to avoid an eviction this early on :) 

Thanks !

Mark Douglas

Mikael,

I'm definitely keeping my eyes open for 3s and 4s as well!  Let me know how your search is going, I hope you can snatch up a great deal!

Mike, 

I see your point...I shouldn't let a deal pass just because it doesn't cover the entire mortgage.. 

Trying to run the numbers here....just don't want to get impatient and buy something off of impulse.

I came across a duplex with PITI of $904, with one side renting for $750. I drove through the area a couple days ago.. I don't think it's an "A" neighboorhood, but it's definitely not a "C" either. I suppose a mortgage of $154 is better than my $690 apt rent! :)

You're right though, I'm excited to really see some cash flow on 100% rentals. 

Mark

Mike, 

Sounds like I need to lower the bar just a bit....I can find a property with higher cash returns, but I'll be looking in a C class neighborhood... This first deal will be FHA owner occupied, so I'm having to be a little more "aware" of the location..

Trying to find a happy medium between a property in decent shape, in a decent neighborhood, and at a price that will cash flow $100/door ...or at least break even...

sofia, congrats on your first deal! Must be exciting :)  I'm 22, unmarried, no kids, so I don't need much space,  but if you've got a need for the space, I guess I would say use the extra room..  My first inclination is to go for the rental income, but whatever works best for you.  Congrats again on a big step :)

Definitely see your point about doing the math to analyze a deal;  I'll practice running the numbers a little more closely , rather than just looking at cash on cash returns.. 

Thanks everyone for the input.  Brie, I'm in an over-priced Nashville, TN market.  Slim pickings for a "good deal", still searching though! Mikael, yes I definitely know where you're coming from..we've got to make sure we account for all these costs ...

Jon, Thanks for the in depth review!  It sounds like it's going to be difficult to cash flow...guess it comes down to the sale price.  I'll definitely refer to your advice, thanks again!

 Candace,

Which market in TN are you operating in? I'm a new investor, searching for my first property in the Nashville/Antioch/Hermitage areas.  Most of the multifamilies (2s, 3s, and 4s) are overpriced.  How are you finding deals in your market?

 Many thanks !

Mark Douglas

Morning BP!  

I'm analyzing small multifamily properties (primarily duplexes) for my first owner-occupied investment.  

I have a general question about rental income: should the rent from the vacant side completely cover the mortgage, or is it feasible for the rent to only cover 70-80% of my mortgage?

Am I expecting too much from the rented side?  

Thanks so much !

Mark Douglas

@Luka  thanks for the referral.  I've started the process with People's Home Equity (the one Craig threw out earlier)

We kept missing each others call today, so I'm expecting to hear back tomorrow.

Thanks again, I'll have to look into Cedar Stone.

 Sorry, meant Craig* !