All Forum Posts by: Steven Carnahn

Thank you Chris Baxter that is a very good point!

Hello Julie Haveman I have punched in a few different numbers on the Rental Property Calculator. It sounds like the mortgage payment will be under 600 a month. I did choose 100.00 a month for repairs and 100.00 a month for CapEx. I accounted for trash costs. But as far as snow or landscape I planned on doing it myself since I will be living there. And we maintain my fiancés property so when it becomes to much we will have to adjust accordingly. Those number were a guess so I'm glad to hear that it is close to what you have put in. With the duplex I assumed it will not make me rich, but if I can get some profit I will be happy. Especially with it being my first

Thanks for the reply Jim Blackburn I suppose I haven't thought about the FHA for a 4 unit because I have not found a 4 unit in my area. There are many duplexes in the area and I have not seen a Tri or quad the last year I have been looking. There are currently 4-6 duplexs that have been off and back on the market here in Marion. So I feel like my options are limited and this seems to be the best I have found in awhile. Relevant or not my fiancé owns a duplex also (1 year) and is able to pull 850.00 from each side allowing 530.00 a month to go into savings. When I went to the bank they assumed I would use an FHA. Should I go another route? I do not have a lot of cash on hand at the moment for a down payment so the 3.5 was appealing for my first investment. I'm trying to plan long term and still consider my short term options. Would I be painting myself in a corner in the future if we plan to purchase more rental properties in the near future by using an FHA now? I don't know how exactly it works yet but would the equity I would have be an option in the future for another rental purchase? If I do get it for 89,00 and it appraises at 118,000 from my knowledge I would have some equity I may be able to use. I haven't looking into that to extensively yet so I am not sure. In the back of my mind, once I do more research, we should both have some options available to us since one is in her name and one is in my name. Like I said I'm learning as I go so if I am wrong and just a little off path please point that out.

I want to throw some information out here and see what kind of feedback I can get. I found a beautiful brick duplex in town listed for 89,000. I waited a week after we looked at it to put an offer on it. Well, someone beat me to it. They are using a VA loan but my realtor said that it didn't sound very promising for them. Why, I do not know but regardless we put in a back up offer on the duplex. I offered 89,000 and seller to pay closing costs. And that is as far as it has gotten so far. I asked my realtor for some info so I could use the rental property calculator. She said that it appraised for 118,000. The top unit currently rents out for 500. Which I believe is low and I am underestimating everything to be as realistic as I can be. I feel 600 is what the top can rent out for. I will live there in the bottom unit for a year and take advantage of the house hack process. It will need a few thing like 2 new garage doors and some inside repairs in the garage, New carpet in a few rooms, and the front windows have been replace so I think I should consider replacing the rest of them over time. When I used the calculator I plugged some numbers and come up with what seems to be good to me but I wanted to get some opinions. In the past, the units have been 500(top unit) and 600(bottom unit) a month. I think those could easily be raised 100 each in regards to local properties and apts rental rates that I have found. So with 3.5 percent down with an FHA, my COC ROI is 36.89% and cash flow would be 249.48. I have 100.00 a month going to repair and maintence, I have 100.00 a month going to CapEX and 60.00 a month for vacancy. This will all happen when the duplex is fully rented out. The first year or so while we live there, using the same numbers, I will be able to save money in the process. I haven't figured out how to calculate/categorize it exactly but to me it looks something like this. When my place sells I will have 17,000 in hand and I will no longer have to pay my lot rent of 361.00 a month. My tenant I will acquire will add 500.00 income. This is where I am at now. Trying to figure out numbers. Being as realistic as possible (from what I think). Am I overlooking something(s) important? The whole deal could not even happen but it would be good to learn for the next one I find. Are the numbers came up with realistic? I'm trying to think long term so I want to consider keeping more of my money while I live there and profit long term. When I type all of this out it seems random and I don't feel as confident about what I know. Please share any advice you can as I am taking my first step in the REI world.

Thank you everyone for the warm welcoming! I will keep all of you in mind once I start moving forward.

Hello! This is my first post and I am very excited about the opportunities that are ahead. I am a lineman for Ohio Edison with and 7 year old daughter and recently engaged! And I am in the process of selling my home. I have had a lot of interest in duplexes and triplexes for many years but was afraid to pull the trigger. But now that I have found bigger pockets I feel much more confident and moving forward. My fiancé actually owns a duplex (1 year) so we have been working together on that...well I'm the designated maintenance man now. Haha. One side is rented out and we are finishing up the kitchen on the other side before we open the door to occupy it again. We have been going and looking at homes for a few months now and I have found a duplex that seems to make sense to me. I did find out that it is in contract but the realtor doesn't think it will go through. So I made a back up offer on it and am waiting to hear some news. That happened 2 days ago. I have been listening and reading on BP for about 5 months and yesterday I attended my first webinar and signed up to be a pro member. So I look forward to taking advantage of the perks that come along with that. I am very excited about moving forward and learning as much as I can!