All Forum Posts by: Erin A.

I'm doing the same thing right now: buying a triplex via FHA to live in one unit and rent the others. It's my first investment, I'm supposed to close on Dec. 30th and I'm so stoked!

My agent has been immensely helpful and I can't even fathom having done this without her since I'm a total newbie. If you've bought properties before, maybe you won't need an agent this time.

I have to say, though, that my mortgage broker was probably an even more important piece to the transaction puzzle with regard to knowing all the funky FHA rules and helping me navigate the torturous underwriting process.

My advice here isn't about the buyer's agent... make sure you have an excellent advocate on your lending side of things if you're going FHA!

Best of luck to you! :-)

@Trevor Lohman Nor am I accredited! So frustrating. The good news, however, is that the SEC is thinking about changing the rules so that average Joes and Janes can participate. Here's a link to get you started on the topic:

http://online.wsj.com/news/articles/SB10001424052702303722604579111852526014742

You can then do some Google searches to learn more. There are plenty of cool RE crowdfunding start-ups these days. Good luck!

@J. Martin I'm late on this post but was thinking the same thing for my triplex for next year. Did you end up hanging the lights? If so, did everything go okay?

I agree that the lights probably don't add to the bottom line, but it's something cheerful and positive an owner can do for their tenants. Good for you!

Hi J, thanks for organizing this! Count me in! So excited to meet everyone and geek out. :-D

Erin

The breadth of goals reflected in this thread is truly inspiring. Good luck to you all!

I'm days away from closing on my first investment, an owner-occupied triplex via FHA. My goal for 2014 is simply to find good tenants early and manage the property well. I hope to build up my cash reserves, too, and continue to improve my credit score so that I can purchase another property in the next couple years.

Hurrah!

Also forgot: have you included taxes in your calculations?

Steve,

I'm really picky about expenses. I want to know as accurately as possible what my expenses are going to be so I can have an accurate sense of cash flow. I know many folks are fond of the 50% calculation but I prefer more certainty.

1. Go on the county's website and find out what the recent tax bill was. Figure out the monthly total.

2. Look up water, sewer and trash rates on the city's website or call the city if you will be covering these expenses for tenants.

3. Home warranty quote?

4. Homeowner's insurance quote for sure. Also an umbrella policy if you're super risk-averse like I am.

5. As @Ali Boone said, make sure you include a vacancy loss that is appropriate for your market. If you don't know, call around to apartment complexes or agents. Or use 10%.

You're off to a good start!

Erin

@J. Martin Sent you a PM addressing most of your post. Yes, I'm fresh out of grad school and so eager to get started investing that I'm willing to take on a huge commute from Stockton to Oakland to do it. It's nuts. I'll probably hate myself Monday through Friday, but on the weekends I'll love that I'm a real estate investor!

I was able to find an immaculate triplex in a good part of Stockton for less than a multifamily in a so-so neighborhood in Pittsburg or Richmond. I'm a happy camper right now. I'll breathe a sigh of relief when we close (hoping by the end of the month).

Will keep an eye out for the Meetup info. Thanks!

Erin

@David Krulac that is really good to know! I just assumed I'd have to evict. I'm pleasantly surprised about the FHA's stance on that. Will keep it in mind for next time.

When you get down to the math, it costs less to keep (good) tenants than it does to find new (unproven) ones.

Costs involved in keeping a tenant: an occasional gift, the occasional repair, paint an accent wall of their choosing, etc.

Costs involved in finding a new tenant: #1 is lost rent for the amount of time the unit is vacant. You also have to cover part of the utilities during vacancy. Then there's advertising fees, credit and background check fees, gas to drive to the property to meet prospective renters...

I say do your best to keep the good ones around!

Good luck!

Erin