All Forum Posts by: Mark Ostertag

Wow, hot topic! Thanks for the input everyone!

I'm really just trying to be conservative and safe seeing as how my family and I will be living next door. I realize that my screening process likely isn't going to be impenetrable (try as I might) and I don't want anyone to lash out at my family if there is some disagreement that I cannot resolve. Hope for the best, prepare for the worst...

I'll have to ponder this one further, lots to consider. Thanks again!

Hello All, 

I've read that if you do your own property management, the number recommendation is to not reveal that you are the owner. (I'm planning to Owner Occupy a duplex as my first real estate investment purchase.) My question is, if the property is currently rented and you go and look at the property, how is it not obvious that you are the owner when you tour the place? Maybe it is uncommon, but the last place I looked at was a four unit and I met one of the tenants during the tour. Were I to move in, I'm pretty sure she was would know who I am! Any insight is appreciated, thanks!

Well, we need more space. Where we are living now is pretty tight and only going to cut it for another year or so, thus I've started looking. The thought process went... we could get a bigger apartment, but for the money, why not a single family home. Then, if we're going to get a single family home, why not a duplex? And then, triplex and four unit popped up, and I'm considering them, but if I have a few months of vacancies in addition to a major repair I'll be in trouble. Risk would presumably be less in a duplex where we can more easily cover the payments if there is a vacancy.

Perhaps a better question is, how much vacancy should I plan on? One unit vacant for three months in a three or four unit and I should be fine. More vacancies than that in addition to a repair and I'll be in trouble.

How much reserves is the right amount? $20,000? We have less than that in debt

I don't have a specific property in mind, but there are a few available, one four unit that I like more than the rest, but not enough to call it the one I will buy for sure. There is also a three unit. Further, there are duplexes, but mostly not in the best areas. I'm considering all of these.

I am planning to manage it myself, but that's a great question because I haven't done it before and my job is fairly demanding. Sometimes I will travel for a week here and there (on rare occasions it will be more than that). I'm expecting that I will have to have some sort of backup person to help when I'm out of town or simply don't have the time to deal with whatever comes up. The property that stands out slightly more than the rest will require repairs and updates, not necessarily immediately but soon (as far as I know).

My wife and I still have some debt, but we haven't been chipping away at it quite. Our reserves would be a low interest (6%) credit card until we got into a better position.

I'll be almost completely financing it.

Time... great question. I rarely pay anybody to fix something that breaks (might have to change this)... but I'm on call 24-7 with work (I'm a manager/technician for an ISP) and don't have a ton of time, I make time for things that are a priority, but work takes precedence.

The 3 units are currently rented, but I don't have specifics on how long their leases are or when they moved into the property.

Hello All,

I've considered investing in real estate for a long time, but have only recently come around to the idea of actually doing it. (I also haven't been in a position financially to do it previously, either.) That said, I've been going through a crash course of reading books, articles (many on BP), and talking to other real estate knowledgeable people I know. I haven't done any of this before, but I'm quite motivated. That said, can anyone tell me if taking on a four-unit (owner occupied) as a first purchase is a bad idea, as in too much to handle? I'd prefer not to make big mistakes when spending this kind of money. Thanks in advance! (I'm sure glad I found BP!)

So, what was the conclusion to this story?