All Forum Posts by: Scott Raynor

I have long wanted to get into real estate investing and finally got up the nerve, but now I'm worried I'm paying too much.  I've consulted with local real estate agents and they gave me a number of $215,000, but I'm paying $224,000 along with $6k in seller concessions for a total mortgage of $230,000.

I'm going to "house hack" and live in the one unit the first year and update appliances, floors and the bathroom.  There is a tenant in the other unit who has been there 6 years and is planning to sign another year lease the end of this month which will off set my mortgage by $1100.  If my math is right, I'll have a housing payment of about $800/month.

My plan is to move out after a year and rent out the refurbished unit for $1200/month.  The cash flow would then be about $375 after all expenses.  I'd like to then refinance and hopefully have enough to use on my next property, but that's where the purchase price comes back into play.

Am I falling victim to analysis paralysis?? 

Hi Chris,

No, it's not section 8 or government housing.  It's a B property if I understand the way to evaluate rentals with that system.  I'm actually now seriously considering house hacking and living in one of the units for at least a year.

@David Kiszka thanks so much for the feedback! I’m in the Syracuse area. My biggest concern right now is getting the math right so it will cash flow. I don’t have mls access. Maybe I should just bite the bullet and contact a realtor? Right now the selling agent is giving me $2500 off the price if I don’t. Should I be concerned?

Thanks so much everyone for the amazing feedback!  This was my first time posting in the BP forum and I'm so happy I did!!

Alex, the property is in a good area with good schools and plenty of shopping near by.  With my limited experience, I'd consider it a B property.  I've been communicating with the seller's agent thus far.  

@Maryanne Cameron, thanks for the recommendation on the BP software.  I'm terrified of missing something in the math! It also looks like you're not too far from me either.  I'm in Central NY.  Good to see others making a go of rentals in this area!

Anyone have any recommendations for financing besides borrowing from my employer sponsored retirement account?  Do I definitely need to come up with 20%??

I'm also considering house hacking and living in one of the units myself as I know that'll lower the down payment since I'd be considered a first time home buyer.

To clarify, the loan from my employer sponsored retirement fund would be for the down payment, not the entire loan.

I've been looking at buying my first investment property-a duplex in Upstate NY using a loan from my employer retirement fund. The numbers look good with a cash flow of about $200/month from the current tenants.  Mortgage rates are looking great but I'm obviously concerned over the pending recession from the COVID-19. Thoughts?