All Forum Posts by: Michael Rosado

Looking to buy a MFH and stumbled upon this MFH on a wholesale list. 

Purchase Price: $99,500

Gross Rent: $1,595 ($1,800 projected at market rents)

2x - 1-bedroom and 1x 2-bedroom units. Fully rented w/ rental increase due and projected $1,800 monthly rent roll. Owner pays $291/mo water, sewer, trash.

Annual taxes are $1605/year. 

This is the information from the wholesaler: 

Asking Price: $89,000

13% CAP $1,040/monthly net

I looked this home on zillow and seems prices are increasing in the area. It's the Camp Hill area. Rent also seems to be steadily increasing. 

For the more seasoned vets, how do you evaluate deals like this? 

What would be the next step? Mortage lenders?

I'm looking to get practice. This seems like a good deal to me but interested to see it ripped apart. $89,000 for multiple units that seem to produce cashflow. 

Thanks, 
Michael

I think I've come to the decision that I'd rather own a MFH than a house in the DMV area. It's just too much money to make sense if I intend to eventually rent it out. I have no intention in setting deep roots, which would be the only reason to buy a house in this area. 

Here's my question. I've seen some MFH in areas that I am familiar with (Lancaster and Harrisburg), PA that go for $505$60k. I've been playing with the idea of buying a duplex or triplex in an extremely cheap place further away and subletting a place in DC for other nights I need to be in town. My job allows freedom to be on the east coast but within an airport. I thought this was tip toeing the ethics line, so I figure it made sense to eliminate the travel and just put the %20 down. 

Does it make more sense to buy a MFH in an area I am familar with where I can have people I know look after the property? 

Why don't more people chase these types of deals with a downpayment of 10k could possibly get you a MFH (50k mortgage) with multiple income streams?

This is where I'm at now, but something tells me that if it was this easy more people would be doing it. 

I think I'm going with a comfort thing here but am also tired of letting fear having me jump in. 

Any help is appreciated as usual. 

Thank you all for the feedback. 

Sorry for the delay in responding.

There's so much good info I'll read over again and come back with more questions  

Hi all, 

I'm fairly new to the world of real estate investing but have been enamored with the idea for the past 4 years. Within those 4 years, I feel like I've dug through enough information to just slightly grasp what the heck is going on. 

So here is my dilemma. 

I want to jump right into investing but have a few things that are hanging me up. 

I have the choice to:

A) Do owner occupied first with a FHA loan.

B) Save up a little more to buy a 100k house somewhere further away that I'm familiar with. 

Here is the problem.

A) I live in the Washington DC area, which is pretty expensive. A 350k will likely get you a fixer upper or something you don't want to live in. 3.5% on a livable house in this area will be around $14k. 14k can be enough to buy a decent place somewhere else. 

-Even if I move a little further away (Falls Church, Alexandria, etc), I risk not only inconveniencing myself for a few out of my life, but there is no guarantee that anyone would want to rent that far away from the city. 

B) I've been eyeing Harrisburg, PA because it is pretty close to me (2 hours) and I am familiar with the area (I used to live in Lancaster, PA). 

I'm leaning toward just saving up what I would be spending on a downpayment for an FHA loan and starting off with a 100k in Harrisburg, PA which seems to have more than enough houses.

Another idea I have is doing an FHA loan on one of those cheapers houses and making the commute between PA and DC since I am remote. I could afford my rent and the mortgage but have roommates in PA to cover the cost. I believe mortgage would be around $600-$700, depending on final price.

Other details that may be helpful: 

-Great credit (750+)

- Salary $90k/ bonues $25K 

- Washington DC area

-PA native (Lancaster)

Sorry for the lengthy post which probably contains a lot of easy answers. I learn as I go!