All Forum Posts by: Michael Faudoa

Hi everyone, I have a basic understanding of real estate investing but I am still completely new. I'm thinking of purchasing a duplex and I'm wondering what factors I need to consider.
Unit 1 rent is currently $1200 with room to raise
Unit 2 rent is $1250 also with room to be raised
Both units were completely rebuilt in 2016 and look brand new, modern, and great.
My mortgage PITI payment is shaping up to be $2500/mo.
Because I don't have a huge stash of cash, I would be doing 3.5% down with an FHA loan and a plan to refinance to ditch the mortgage insurance a few years down the road.

Currently, the landlord pays for water and sewer. Is it expensive to put a separate meter on each unit? 
Other than creating a budget for vacancies, repairs, and cap ex, is there any other cost of owning a duplex that I'm not thinking of? 
The post is kind of all over the place and I apologize. I'm 25 and very inexperienced, but I love this community and am curious what you all may have to say. Cheers!

@Malia Irvine Hi Malia, I have found the easiest way to get started with not too much money to begin with is wholesaling. As for making cold calls, it becomes almost second nature after having made so many calls. You don’t even really think about it, whereas your first call can be nerve racking because no one wants to sound stupid or they don’t know what to say (me). I hope this comment helps! I’m a new investor who formed a relationship with a mentor and it has propelled my real estate career so much. So if I can give any more advIce, It would have to be get a mentor. A mentor can be a powerful tool when learning a new skill (wholesaling) :) Regards, Michael

@Dan H. Thank you for the input Dan, I honestly hadn't looked at wholesaling that way, but it makes complete sense. You don't want to strain any relationships with the seller or else you could develop a bad reputation. 

What about the ethical lease option? Are lease options a viable way to get into RE investing with no or low money down? I am interested in the BRRRR strategy, but I am locked into a 1 year lease in my apartment complex starting in August, and I would love to start the process before then if at all possible.

@Tim G. I don't have a lot of money, being that I am a college student with only a couple thousand. From what I have read, wholesaling and lease options tend to require little money to start, but I also know that the lease option is a fairly advanced method. However, the profit potential seems to be killer with lease options which is what drew my interest to the strategy. 

I was thinking that these two strategies would be a great way to start building a lump sum of cash so that I can eventually transition into small multifamily properties as buy&holds, and then eventually go towards larger commercial properties. 

As for where to try these, I am not entirely sure. But I want to see if I can learn something about wholesaling in San Diego. I just bought David Greene's book on long distance RE investing because I know that the midwest holds a lot of opportunity as far as minimal market fluctuations and cheaper properties. 

Any advice would be greatly appreciated! 

Regards,

Michael Faudoa 

Hello BP members,

I will be moving to San Diego in 2 weeks to attend SDSU to continue my education on real estate. However, I feel completely stuck. 

I am looking for someone in the area that I can talk with about real estate investing, preferably about Lease Options or wholesaling. If you think that you might be able to help a new investor out, I would love to get in touch with you and set up a meeting at your convenience. 

Best regards,

Michael 

Hello all, I have a basic question about partnerships. I have grown my knowledge on real estate enough to the point that I feel ready to make a deal. However, I have no money. My friend has no knowledge in real estate but loves and trusts what I’m trying to make happen. He has enough for a 25% down payment on a lot of properties that we are looking at. We are just completely unsure how to structure a deal where we both benefit. He doesn’t have enough to purchase the property outright, only enough for a 25% down payment. How can we combine forces and use my knowledge with his cash??

[email protected]

Thanks again. 

Hi Ari,

Can you please send me the details of this property? Like the address, annual taxes and expected expenses?

Thanks a ton! 

Mike

Okay I will look into it, thank you for the advice @Skylar Simpson- I appreciate it man. 

@Skylar Simpson can you elaborate on a subject to deal structure? I have heard of it but haven't read much on the subject. Essentially, I would just take over the loan?