All Forum Posts by: Nathan Nelsen

@Michael Noto I'm not going to have PMI after 4 years or less potentially and I don't plan on us pm within that timeframe. So in that sense it would cashflow. What reasonable purchase price would this make sense with?

Thanks for the insight.

@Joe Villeneuve would you say I'm better off in a SFH for the time being in the Detroit Metro (Oakland county market) I've been searching for a multi family deal for the past 6 months and I haven't found one that comes close to cashflow omg except for this one.

@Nathan Nelsen I forgot to mention PMI @ $123 per month, so that will affect the cashflow.

I’ve been sitting on the sidelines waiting and searching for a deal and I think I might have found. To give a little information it’s a duplex, each side is one bed-one bath, completely remodeled in 2016 with new kitchens bathrooms, oak hardwoods. Newer roof, electrical, vinyl windows, and doors. Current owner says both sides rent for $1100 a month, and based on that area it seems about right. My idea would to househack for a year or two then keep this as a rental. One unit already has a tenant. I’m currently rent and am sick of throwing money away every month. This is a nice neighborhood in metro-Detroit. No garage and current rental cert. with city.

Here is my analysis:

Purchase Price: $219,000

Taxes: $2160 per year ($180 monthly)

Insurance: $996 ($83 monthly)

Capex: 7% ($154 monthly)

Management Fees: $0

Electricity: $100 Monthly (Tennant will pay own electric and gas)

Gas: $50

Water Sewer: $25 Monthly

Repairs & Maintenance: 5% ($110 Monthly

Vacancy: 3% ($66 monthly, hot area in Metro-Detroit)

Monthly gross income: $2200

Down Payment 5%: $11,000

Estimated Closing Cost: $4300

Total Down: $15,300

30 Year Term @ 3.4%

Once I move out I estimate the monthly cashflow with be $519 per month possibly more without utilities cost. I calculated the expenses to be $1680 monthly and cashflow to be $2200.

My CoC ROI is 40.87%

Proforma Cap is $7.90

NOI is $17,304

Any thoughts or feedback would be appreciate, this is my first deal analysis post so I’m sure I’m missing a few things.

I’ve decided the best way to get my foot in the door is by buying a mutiny-family (2-4 unit) property and house hack. I’m sick of throwing money away with renting. The problem I’m having is finding a good deal like most other investors. I’m located in the Detroit-Metro market.

My question is, do I need to follow the 2% rule when looking for a house hack?

I’d like to start building equity in a property as soon as possible, with an exit strategy of 2 years which would give me enough cash in the bank to go out and find more deals.

Thoughts?

Looking in the Madison Heights, Ferndale, Hazel Park neighborhoods but open to other.

So I'm brand now to REI and after months of research I've decided a duplex/Triplex is the right fit for me. I want to house hack this property but the issue I keep running into is that the current tenants are under contract until next year.

I’m open to renting my current place until the tenants lease expire but I’m running into trouble on the financing aspect of this.

Since I won’t be living there at the time of purchase what are some options I have?

After hours of researching and trying to decide how to get started in real estate I’ve came to the decision that house hacking is the first step I’m going to take.

The problem I’ve been running into is the lack of inventory in 2-4 unit properties or the sky high price tags on these units. I’m looking to stay around $225k or under.

I live in Metro Detroit (Oakland County) and it seems like the market is slowing down a tad compared to the last few years when prices were rising off the charts.

Doesn’t anyone have any recommendations on how to find off market properties or should I look outside this area?

If anyone has any experience in this market please share your thoughts and/or experiences.

Thank you,

Nathan

First off, Hello all. I recently joined Bigger Pockets and am extremely overwhelmed but so excited at the same time. I am 25 years old and want to begin the path to financial success/ freedom to enjoy all that life has to offer, but more importantly be able to spend time with loved ones rather than sitting at a desk for the rest of my life. The idea of getting involved in real estate has been something I've pondered for the last few years and I'm finally ready to take the next step.

I've been going back and forth with idea of house hacking vs buying a starter home for the past few months. I was hoping a few could share their experiences with both, and/or things they would have done differently for their first purchase. I'm starting with little money down so I'm thinking a 2-4 unit through an FHA loan, thoughts?

Even though my mind is filled with a million questions right now I'll start with that one. I look forward to everyone's feedback and connecting with like minded REI's through the Bigger Pockets forums.

Another piece of information that I assume is important is my location. I'm living in the Detroit-Metro (Troy to be exact).

-Nathan