All Forum Posts by: Ryan Hurd

Sonny Ruckstuhl Medford is a somewhat small area. What street are your units on that are in escrow?

Jack B. I pay $140 total for city street fees/water for the building (four units). I don't pay for electricity for any units other than the one that I live in ($35-$65 per month) but that is something that I would pay anywhere I lived so it shouldn't be counted against the performance of the building. I didn't include vacancies because I haven't had any other than that tenants I evicted at the purchase of the building and remodeled the units. I have had 2 solid years of no empty units. The market in this area has 1% vacancy rate so renting a place out is never a problem. If you would like to subtract an unrealistic maintenance of 10% of rental income then subtract $335 from my $1150 I clear and the property still performs well clearing $815 per month or $9,780 per year on my small investment (down payment and remodels total about $22,000). I would say that is a really good return on investment (45% annually). So I hate to rain on your parade but you don't know what you are talking about. This is a case of a person being smart with their money and not putting it into a 401K.

Gabrielle Maestas I just asked the seller to pay the closing costs. I actually told them it was the only way I could make the deal happen. I explained that I only had so much cash available and that if I had to pay closing costs I wouldn't qualify. Side note: I lived in Evansville, IN for about 6 months back in 2013 and other than the freezing rain I experienced it was okay. Market there is probably pretty good since Toyota and other manufacturing companies have a large presence.

@Michael Swope sorry that wasn't very clear. You can only have one FHA loan at a time unless certain circumstances exist (growing family, move for work). So if you use it on a single family you are in a position that you cannot use an FHA loan for a multi-family unless you refinance to conventional first on the single family. Conventional means you have 25% down for an investment property in equity.

@Jesse Semeyn I plan to save bout $3K a month for my next down payment. If real estate goes up I can maybe cash out refinance my current place. I am not really wanting to take on investors for private financing. That is just my personal preference though.

I originally purchased my place and was dreading living in it. I was planning on only living in my unit for 1 year to fulfill my loan obligation but it has been over two years and I am still living here. I fixed it up nice and realized that it wasn't so bad. I am white and I am in an area that is mostly Hispanic. I am moving soon but I would definitely do it again. I don't know what the area is like so it is hard for me to say do it. I would just say that 12 months goes by really fast.

@Bill E. I purchased my four plex for $260K and my payment is $1880 which includes taxes, property insurance, mortgage insurance, principle, and interest. I also pay HOA fee of $180/month which covers garbage, landscaping, outside lighting, and parking lot maintenance. My water bill/city street fees are around $140/month. So my total outgoing is $2200 per month not including maintenance. I purchased a decent property and I have remodeled two units. Current rents are $850, $850, $700, and the unit I live in is very nice and would rent for $950. Total income is $2400 plus I live for free or a total value of $3350. $3350 - $2200 = $1150. The $1150 per month profit does not account for repairs but so far nothing too bad that wasn't planned.

Side note: When I purchased the building the rent was $625 for each unit. Which only cleared $300 per month.

@Steve Bracero I just looked at your profile and it looks like you will be buying soon. I thought that I had all my stuff in order when I purchased my first property but I didn't get the current renters deposits during the closing process. I did end up getting them but it was a hassle. Just something to look for when signing.

okay, my dad is selling a lot in white city right now. It is 1 acre for $135K but it just went to escrow this week I think.

thanks @Marques J. 

I wish I had bought single families back in 2011 but I was on an amature poker players salary back then. I am glad to hear you have some though. The benefit to single family is that they can grow equity pretty fast and are easier to finance. Single family at the moment are pretty expensive around here. I hope that the rent demand continues to support the high mortgages. With minimum wage going up to $13.50 in the next few years I am sure it will.