All Forum Posts by: Jeff G.

I told her I would not look at any with Deferred maintenance, which it sounds like many will be in great shape.

I am getting close to making the move on my first property (duplex) I was planning on waiting until June for personal reasons but have the ability to do so now. A broker I had been interviewing told me she has 20 duplexes which they are releasing 5 at a time as to not flood the market, all are 100% occupied with leases. I told her I was very interested in seeing the ones in the better parts of town.

Here is where I am at. I have fallen victim to analysis paralysis. The duplexes she will have available will likely sell for around 50-60K this is common in the community. With rents per unit of $500-$525 on average per month per unit (2 bedroom), so assume a 50K mortgage with 20% down and 30 year term. Property taxes are right around $1200 on average. I have not yet decided if I will go the property management rout, this community is about a  45 minute drive one way from my house so I may.

When I run the numbers it seems to make sense.  Am I missing something obvious?

Thanks,

Jeff

So I am sitting down to iron out my business plan. Spending time on BP it seems that many people who have 15,20,50 houses hold mortgages on most of them. My wife and I are conservative by nature so the thought of 15-20 mortgages is scary to us. My thought was that in year three when I should have 4-5 duplexes to pay one off prior to moving on then acquire a few more properties then again pay off a mortgage or two. As a 32 year old am I ever going to be able to reach 20-30 properties doing this? The market I will be investing in the properties are only 40-60k for duplexes. With monthly rent per property of $1100-1200 and taxes on average of $1200. Input is appreciated. Jeff

I am more interested in it for the purpose of having a company name and building a professional name for myself.

I am about 6 months away from being comfortable with perusing my first deal (for financial reasons alone.) I thought now would be a good time to put the business plan In my head into writing, start a LLC, make my formal letter head and build a relationship with a realtor in my target market. My brother-in-law is an attorney so I have free legal advice and council to form my LLC and to get my leases ironed out. My plan is to buy a duplex this year to get my feet wet and then next year things start blowing up with multiple additional buy and holds, with a fix and flip thrown in the mix. To all you seasoned investors. Does it make sense to you to form a LLC and does the above make sense to you? Anything obvious that I should be doing aside from more research in my target market? Thanks.