All Forum Posts by: Jeremy G.

Thanks for the replies!

I am going to owner occupy the 2 bedroom unit and that will be in the purchase agreement for it to be vacant upon closing, I am using FHA financing, The current seller loves the 2 tenants renting the 3 bedrooms and was very relieved when he heard I wanted the 2 bedroom vacant, I'm hoping the current long term tenants have done there research and expect the rents to be raised because they have been there for 10 years and 20 years, Each unit just has separate washer N dryer hook ups, one of the 3 bedrooms has a garage bay and storage included in the rent (640-690/month) and the other 3 bedroom has a large storage unit included in the rent (640-690/mo) I would like to get at least 1k/mo per unit which would make the place cashflow, mortgage will be 1400-1500/mo which includes everything insurance, pmi, taxes etc. I feel like a slow monthly increase would be a good way to raise the rent but I dont know if thats a normal thing in this business like for example unit A 3 bedroom current rent 160/week for the first month of my owner ship it will stay the same, 2nd and 3rd month rent will increase to 170/week, 4th and 5th month rent will increase to 180/week and so on and so forth until I get to the fair market rent. On my way to work so I'll end it there for now

Thanks again for the replies!

Hi Everyone, I'm very new to all of this and need a little bit of advice.

I am currently working with a real estate agent that I know personally, I will be her first multi family purchase shes new to real estate but has a mentor at her company that has been doing it for decades and provides a lot of assistance though she isn't available very often so we are sometimes on our own and learning as we go.

I have been renting the same place for the past 10 years and the owner is selling so now I have to find another place to live, instead of renting for over 1k/month I decided to purchase a multi family, at first I was looking for duplexes but then came across a 3 unit the asking price is 180k, it is two 3 bedrooms and one 2 bedroom, it has a 2 car attached garage, washer & dryer hookups in each unit, newer heating systems tenants pay all their own utilities except sewer and water which is roughly 2k per year the house also has 3 seperate large storage areas above the garage, and it also has a decent sized back yard. 2 tenants have been there for over a decade in the 3 bedroom units and 1 tenant has been in the 2 bedroom for about 6 months. I would live in the 2 bedroom with just my daughter and I.

All 3 units are on a month to month basis and renting for only...... $160/week so the 2 bedroom is paying the same amount as the 3 bedrooms,the owner has included the garages and storage for free with all the tenants rents. looking in the area we are finding no 3 bedrooms available and 1 and 2 bedrooms renting for $750-1200/month with no washer N dryer hook ups and no storage. My agent is confident we can get the property for around 165k due to local comps and how long its been on the market (half a year). My mortgage will be roughly $1500/mo and at the current well below market rents I will not cover the mortgage, so they must be raised I am confident I could ask $1k/mo per unit or add an additional $70/week to the current rents, But i also want to try to find a way to remove the storage and garage bays from the tenants so I can rent them out and make additional income. These people have had it made for so long I hope they are expecting changes. How would you guys go about this? gradually increasing rents? or just rip off the band aid and do it all right away?

any advice on this situation is greatly appreciated!

At first i thought i was over estimating but as i look more and more there are less and less apartments available for rent and the absolute cheapest ive been able to find a 2 bedroom for from hillsboro to pittsfield is 900/month and there is very very little available to rent in these areas the only ones i can find and they are not luxury apartments hell they arent even updated apartments and they are going for 1200-1300/month, i found a couple 4 units around 150-160k that are at full occupancy renting for 975/month i believe rent can be increased in these properties to at least 1k/mo which would be 3k income for 3 apartments same plan as my original post with a slightly higher mortgage payment. Please let me know because im very ignorant, where you can find a nice updated 2 bedroom within 30 minutes of concord/ manchester for under 900/ month? I cant find it

Hi Everyone, I am new here but Ive been watching, reading, researching for the past couple months. I am still very ignorant when it comes to most things real estate, But I have a pretty good idea of what I'm looking for what my plans are and how i'll accomplish them, But I am looking for a bit of Unbiased advice, I can not find anyone around me that is looking out for my best interests in fact everyone I know is only out for themselves, SO, I have come here in search of guidance!..

My situation, I'm a 32 year old single father of an 8 year old girl, I have a full time job making around 61k/year I have been renting a townhouse from my mother for nearly a decade, never really thinking I would have to move in fact, I assumed(like an ***) that I would just end up owning it sooner or later, I never prepared for having to move or prepared a downpayment or anything of that sort, in other words, I've been very stupid over the years. My wake up call came when my mother told me she's selling.... uh oh I screwed up. So now I have to find a place for my daughter and I to live. 

The rental market in my state is insane, median rent is around 1250/month most of what I can find is around $1500/mo, So I started thinking, Maybe I'll just get a house the mortgage wont be too much more, upon doing research and talking to mortgage brokers and real estate agents, on a 160k home with only 3.5% down My mortgage would be around 1400/month which includes taxes insurance pmi etc. This is just too much for me to want to afford comfortably. I was approved for 160k with my income and a 620 credit score and a down payment grant program of 3%. This just isnt going to work for me.

Over the past 3 months I have worked on my savings and my credit score and done a TON of research, I am now a 700 credit score and I have 6k in savings, and a much better plan. I live in the biggest city in NH and work in the 3rd biggest city in NH. everything available in the main cities is far to expensive or run down for my experience and comfortability, I also want to get out of the city because I hate the city. I've decided a multifamily in one of the surrounding towns would be the best choice for me, So i started looking into multifamily units. Again I have been pre approved for 160k and a down payment grant worth 3%. I found 2 multi family properties that I am interested in, located in a small town about 20 minutes outside of the city I work im. average rents in the town are right around 1200/month. It's a 3 unit 129k with a new roof, new windows, new flooring, My mortgage will be roughly 1200/month, if I can rent the other two units for 1200/month, then I live for free and have an extra +/-$1200/month to put away every month as well as the income from my full time job, even at 100% vacancy, my mortgage is lower than buying a single family home and also lower than renting. 

This just makes 100% perfect sense to me am I wrong? way off base? out of my mind? dreaming?

This is what I've come up with so far

asking price: 129,000

down payment: $4,515

financed: $124,485

taxes approx: 4k year

interest rate approx 4.6%

PMI approx $100

Approximate total mortgage $1150/month

Median Rent in NH and locality of property 1250/monthx2 =2,500/month in rental income approximately $30k/year

2500-1150=1350  after mortgage 1350-50%=675/month for vacancies/repairs leaves $675/month cash flow for savings/emergency fund/student loans/ extra mortgage payments, again this is not including the income from my day job.

Am i dreaming? I did find another property is is in the same town and also a 3 unit multi family over all more square footage but also 155k so it's a higher mortgage payment. 

1 more option I was thinking about on the 129k property is doing a 15 year fixed, mortgage would be around 1300/1400 per month so less over all cash flow but faster pay off lower interest.

Any advice?

Thanks!

Jeremy