All Forum Posts by: Nate Walsh

@Ashley Budyak FHA loan 3.5% down on a duplex. Live in one half rent the other. You get a house and rental property. Plus all the experience you will need down the road

@Yonah Weiss Construction Management degree for me. I wouldn't say the degree helped me as much as having worked in construction and held a construction management position. Obviously management of budgets, people/contractors, high stress, and schedules are important when flipping. So my 9-5 job has helped me immensely. I'm a firm believer that degrees are really just door openers. You dont really learn everything sitting in a class room looking at PowerPoint slides. But everyone wants to see that $100,000 piece of paper before you slave 9-5 for a company.

@John Lanser Cozy is simple, free, and gives you other much needed tools such as a online renter's application. I did a alot of research and cozy is what I found to work best for me.

Thanks Eric. You are correct. My cash invested is off and that's my mistake for misunderstanding where/how to properly enter the data on bigger pockets. Will fix 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $178,000
Cash invested: $2,500

This is a 2 story duplex. I am currently using it as my primary residence and a house hack. 51% of my monthly mortgage is paid by my tenant. I have renovated the upstairs unit and am finishing up the lower unit renovation. The goal is to move out and rent both units.

What made you interested in investing in this type of deal?

This was a fast method I found to get involved in real estate and build experience. I can live in the unit as I do the renovations in my free time as well.

How did you find this deal and how did you negotiate it?

I found the deal on Zillow. I paid the asking price, but I got 3% sellers concessions.

How did you finance this deal?

FHA Loan

@Willie Bradley I recently purchased my first home with an FHA. I bought a duplex with 3.5% down (minimum requirement). I now live in one half and rent the other. That was a pretty good option for me to start out and might be for you too.

-You need to pay a little extra monthly for MIP

-You only need to put 3.5% down

-You still must pay closing costs

-Legally you must live there for 1 year

Maybe an example with numbers will help you get an idea of the cash amount you must still have. You can buy a cheaper home and pay even less cash than I had to.

I purchased for 180,000 at 3.5% down and after closing costs I ended up paying about 7,000 out of my savings. Plus I have 1,500 saved for emergencies. Mortgage is 1,500. Rent for the smaller unit I rent is $800.