All Forum Posts by: Paul Ritter

Thank you for the reply Andre. I did some quick number crunching and that is what I came up with. I could always get a 30 year loan to lower my monthly payment for the other expenses. The vacancy is something that concerns me since it would be expensive to have the building sitting empty for a stretch of time. I would have to make sure there is enough of a safety net in my bank account starting out to cover for the possible vacancy.

Recently I have came across a quadplex for sale in my area. The asking price is $450,000 and the building is sitting on 6.21 acres. There are 4 two bedroom units that are for sale so that would give me the potential to have 8 tenants (Pretty obvious).

Lets say I went in on full asking price of $450,000 the numbers would look a little something like this:

$50,000 dollar down payment (or 11%) so I would obtain a $400,000 dollar loan

If I got a 15 year fixed at 2.59% that would cause my PITI to be around $3,398 a month

The units could rent out for $1,200 dollar a unit while I also lived in one with a roommate

This would bring my total income to $4,200 NOT including myself (living for free)

($1,200 x 3 = $3,600 + 600 (my roommate) = $4,200)

After subtracting my months PITI I will be left with $802 dollars for maintenance and capex

After checking with the zoning laws you are allowed to build on the remaining 6.21 acres

The big kicker with this deal is that the foundation is already poured for the next quadplex to start construction

I have a good relationship with a builder and I know that in the future I would love to build another quadplex on this lot

Before you look at these questions I would like to give you some more information about myself. This would be my first investment property so this is why I am looking for your opinion. I have just received my real estate license so I am not clueless to the world of real estate. I do not have much experience with investing yet but I am hoping I can get some feedback from you guys. Thank you in advance!

I guess my questions would be to all of you are:

What other due diligence should I preform on this property before pulling the trigger?

Would you stick with a 15 year loan or maybe opt for the 30 year loan?

What do you think about this deal overall?

Please add any other feedback that you might find helpful. I am open to all suggestions and love to learn from you guys

I am currently living in Richmond Kentucky while I finish up my degree here at EKU. Here is my question to you guys: I live in a mobile home right now that is about 1 mile away from campus. It is a nice place this is only 2-3 years old. I have the opportunity to purchase the mobile home with a relatively small down payment and finance the rest. After running all the numbers with the highest possible expenses, they make sense (I really evaluated on the higher side of my expenses to be safe). The issue is that I will be moving back to Northern Kentucky and the property will be in Richmond. Could I manage this property from over 100 miles away or should I stick to something local for my first rental property? Thank you!

Hello,

In a matter of two weeks I will be moving back to Northern Kentucky to begin my career as a real estate agent and investor. I am completely new to this field but I am very excited to becoming a life long student of real estate and all of the benefits it can provide.

My question is what steps can I initially take to start off my career as strong as possible? I have already saved the capital to begin investing right away. Im just looking for some tips and advice from some of you more experienced investors out there.

Appreciate the time and thank you for reading my post!

All my best,

Paul Ritter V