All Forum Posts by: Mark McNutt

@Austin Fruechting 

Honestly I'm not sure how it compares. I didn't do the math on the others because I haven't been able to get another one to the point where I would want to or can afford to buy. But I really appreciate you breaking that down for me. This is all still pretty new to me and I'm still learning how to judge a good investment and think like an investor but that alone i think answers my question and will help me judge similar questions in the future. Good sir you have taught a man to fish this day. 

 Thank you so much for taking the time to help me out! 

@Roy N.

It looks like its been on the market since the end of March and there has been no price reductions. I already made a verbal offer with the seller and the lowest hes willing to go is 115. 

I dont think there have been any prior offers and Im not sure if there is a lot of interest on it. 

@Austin Fruechting

3 units and I would be living in one of them. Down the road i could probably rent it for 500$

Unit 1 850

Unit 2 650

After the repairs (The kitchens need new appliances and cabinets and bathrooms need a little work) I would probably end up buying it for almost 15 or 20k more. (repairs are built into the mortgage). Should I be a lot more concerned about overpaying by about 20k? 

@Roy N.

I agree and thats exactly the game plan. I forgot to mention it was a triplex so thank you for that. But I do plan on living in the smallest and least profitable unit and making that sacrifice for myself for at least a couple years. It being an FHA mortgage I have to live on the property for at least a year anyway. also my mortgage would be higher and thus less cash flow because im putting 3.5% down. Im looking at an estimated 900$ between mortgage, insurance, and taxes and i could do the first unit for about 850 and second unit for 650/700ish.

With my limited ability and experience to recognize a good deal when i see it, This situation seems a little better than a few of the other properties that i have had the option of buying but I am concerned about screwing myself over before ive even started by overpaying for a building. 

This could potentially be my first investment. I have been looking for multifamily properties for months now and to my knowledge and experience, nothing that fits my personal situation has come up yet but i do find myself faced with one potential opportunity. 

Right now Im paying 700/mo in rent. (This will be relevant information shortly)

The property that Im looking at is a triplex being sold for 120k in an area that my realtor said should be selling for about 110k. The lowest the seller is willing to go is 115k because thats how much he still owes on the property after buying it about 5 years ago. After i do some minor repairs and adjustments through my FHA 203K mortgage (I will be living on the property), It will probably be at an estimated 135k that im buying this property at. My realtor advises that this building will likely not appreciate very much at all in the long term but i could profit about 4 or 500$ after mortgage and expenses are payed.

My question is Would it be worth overpaying slightly for this property to free up the 700$ im paying in rent plus adding an extra couple hundred dollars to my monthly income? Or is it absolutely stupid of me to overpay for a property that i will likely never be able to sell for a profit?  

The building is in good shape that i know of and its in the Philadelphia PA market and from what i gather, properties are being sold for about 20% higher over market value anyway. Im not too hung up on the specifics, I would just like to know if it would be worth prioritizing cash flow over appreciation from a veterans point of view. Thank you for taking the time to read this!

I am looking to buy my first multifamily property soon and reading success stories like this give me high hopes and affirm my decision to take this path in life. Thank you! 

Thank you Casey! I appreciate the advice. And yes, I plan on doing much more reading. Do you have any specific book recommendations when it comes to seller carryback acquisition? (Thats a brand new term for me so thank you for that) Or even just great books in general? Not to undermine Brian, Im sure his books on investing in your 20s and investing with no money down are gold mines of information and i most definitely plan on reading them, but being that this is a website founded by him, I would assume there is more than usual hype built up around them. 

Thank you for taking the time to read this! 

Heres the fast version of my question. Im 24, Im a complete beginner and I own no properties. After reading the book 7 years to 7 figure wealth, I want to try to follow that path. My question is this: Is it better to get a 15 yeah fixed mortgage or a 30 year for that particular strategy?'

Heres the slow version. I didnt even know anything about real estate until last month. I just read a random article and found it fascinating and i kept reading until now Im sure this is what i want to do with my future. The reason im asking is with a 15 year mortgage, The monthly cost goes way up. If I'm planning on profiting as much as possible on these properties and then sell them to trade up anyway, wouldn't it be better to do a 30 year for the lower monthly expenses even though it may kind of tank my equity when it comes time to trade up? It seems to make sense to do the 30 year but I dont trust my judgment on this seeing as i have virtually no experience. Any advice that you deem would be helpful would be greatly appreciated. Thanks!