All Forum Posts by: Account Closed

anybody?

Tomorrow I'm closing on my first home and it's a triplex. I purchased it with FHA financing and need to move into the third floor (first lease to expire). The lease expires April 30th. I can't seem to find a letter online that states that I won't renew his lease and he needs to vacate the property when the lease expires. Can anyone help me out thanks.

Originally posted by @Alex Velazquez:

congratulations the place looks great. I see alot of homes are being bought in Bristol. 

 I choose Bristol because I believe it has a strong middle class population. There is a lot of activity in Bristol. One of my previous bosses owns 30 3 family houses all in Bristol. If he had success why can't I?

Originally posted by @Deb Jones:

Congratulations a great feeling to have!

 It sure is! Thanks!

Originally posted by @Joseph Hoot:

Looks nice! I can't seem to get the numbers to work out for CoC. I keep ending up negative. but other numbers seem good. Cap rate seem around 6%? And the GRM of about 7 seems to fit with the b+, c-, I think? What are you assuming for vacancy loss, repairs, cleaning, CapEx, inflation?

Congrats on our fist purchase regardless of any numbers though.   besides gathering knowledge, the next step is always to take the plunge.  And it looks like you did that!

Thanks! I figured 10% for vacancy 5% for cap ex  and 5% for repairs. I plan on managing the property myself. I will house hack for 3 years then refinance to a conventional loan to get rid of pmi. 

Finally my first investment property is just days away from being finalized. I think I may be paying a little more than what it's worth but from a cash flow point of view  it makes sense. The house sold in 2006 for 275,000. I am excited and nervous but I came from nothing so I have nothing to loose. I would like to thank the Bigger Pockets community for opening a new chapter in my life and giving me the knowledge and confidence to enter the world of real estate.

Location- Bristol, CT

Area- C+/B-

Year built- 1920

Mortgage payment- 2,050$ (30 year)

Insurance- 1948/year

Taxes- 4600$

Down payment - 10,000$ FHA 3.5%

Utilities- tenants pay for water, heat, and electricity 

Price- 285,000$ with 10,000 seller concession towards escrow.

Gross rent- 3,450$/ 2,450$ owner occupied

Units- 3 family house 

           1st floor- 3 bed 1 bathroom leased for 1250$

           2nd floor- 3 bed 1 bathroom leased for 1200$

           3rd floor- 2 bed 1 bathroom leased for 1000$ (will be owner occupied)   

Good luck with your journey and remember the earlier you start the better. Just don't rush your first purchase.

If this was a 3 family I would jump all over it

@Juan Rodriguez I think our numbers are on the same page. My rental calculator states + 700$ in monthly cash flow for the 3 units rented. As for me living there I will be paying the 850 as if a tenant was there and it will be going towards the principal on the mortgage so I can refinance out of the Pmi insurance in 3-4 years once my loan reaches 80% ltv.

Juan Rodriguez thanks for your analysis. I'm going to try to get a max seller concession for the closing cost. Also, it's a 3 family house and it's currently fully rented @ 3250$. It is a turn key property so I don't think there will be much repair cost. Here's my analysis I made. I will be house hacking the 3rd floor and paying the 850 rent so I can refinance after 3 years to get rid of pmi insurance and lower my monthly payment. https://www.biggerpockets.com/buy_and_hold_results/105533