Quote from @Anastasia G.:
Hello @Omar Ynoa
Welcome to real estate! Have you gone through pre-approval yet? 3 family in those areas can be easily as high as 700k, you would want to establish a budget. If you were to use FHA financing you would need to be careful with higher prices & higher taxes, 75% of market rents must cover proposed mortgage payment; We typically run max FHA scenarios and provide with all sorts of calculators; If you were to go with 2 Family you will have more financing options as a first time home buyer where we can potentially use 4-4.25% rate and no mortgage insurance, the difference in monthly payment can easily be $500+ which will help you with your Returns/cash flow... the bottom line structuring financing is step 1. Feel free to reach out with any questions.
Hey @Anastasia G. thank you so much for the response, I gladly appreciate the help in this new journey. Right now I'm looking to purchase a fully-gut renovated 3 family home for 675K using a FHA at 3.5% down. Taxes for the home are about 8.4K and looking at a monthly mortgage of 5.4K (principle, interest, taxes, mortgage insurance). I'm hoping that once the appraiser views the home it can appraise for less so that I can work with the seller to balance out the difference or to lower the principle to help lower payments. With the amount of rooms per each unit and what it provides I was thinking to put each unit for 2.3K (3 bd, 1.5 baths, living room, kitchen, washer and dyer) which would be about 85% of mortgage payment. Based on the purchase of the property (without utilities) I still expect to pay $800 out of pocket but granted that is much less than what I am paying for rent in a apartment. Overall I think its a great opportunity especially if I am considering to move out of one unit after a year to have all 3 units rented.
What do you think about this opportunity? If you were in this position how would you go about the situation?
