All Forum Posts by: Michael Johnson

BP Community:

I am a new real estate investor seeking to purchase my first investment property. I am in need of advice of wheather to purchase a single family home or a single apartment unit.

To provide you with a little background on the apartment unit property I am viewing here are the numbers:

4 bed 4 bath in a college town

93% occupied/filled rate over past 3 years

Asking price: $85,000

Down payment: $17,000+(2-3% closing cost)

Mortgage payment: $443 with mortgage, property taxes, and insurance (assumption 4.25% interest rate)

Monthly Rent per tenant: $350

Monthly HOA Fee: $250

Monthly profit: ~$700+

One of the factors that is holding me from the deal is the following:

1.) greater appreciation if I was to buy a single family home vs the risk that additional apartment complexes are built in the college town

What are your thoughts experienced real estate investors? Thank you in advanced.

Lorri 

Would you mind sharing the Forclosure sites you are knowledgable of?  

I asked because I am just getting started into real estate and my strategy is buy and hold. Within my real estate market, prices are drastically increasing (faster than I believe they should) creating a limited pool of homes I can invest in at the 20% down requirement; therefore, I am looking in the area of foreclosures and short sells to acquire a great deal ultimately yielding my profit spread. Please advise.