All Forum Posts by: Sung Jin

Hi Corey!

Thank you so much for taking your time to answering my question!

If it does not trouble you, can you tell me more about how I need to distribute rental income? what do i need to be more aware of?

Where can I start my own research regarding the actual retail price of property?

Thank you so much!

Sung Jin,

Hi guys!

My name is Jin (22) and I am here to learn more about real estate!

Despite not having knowledge regarding real estate, I am more than ready to dive into the world of real estate and learn what is necessary to succeed - that being said, I want to share my idea with you guys in order to find out whether the plan I have prepared is realistic or not.

I was thinking about purchasing a house, apartment, or condo with price range of 200,000 USD. I researched online that as long as I have a decent credit score (above 700), I am eligible for FHA's 3.5% down payment program. Also, by choosing fixed mortgage rate, I would be paying fixed payment on monthly basis.

Now, the question is, do you think it would be wise for me to do 10% down payment and purchase a property worth 200,000 and pay monthly mortgage of approx 1,000 and do 30 year mortgage plan? I do not plan on living in the purchased property, however, renting it out to people.

Here is an example:

I found a house in San Jose with 3 beds and 2 baths. the price up for the sale at this moment is 199,900. According to Zestimate, its original price was suppose to be 238,700. When i used estimate mortgage check to see how much I would have to pay if I were to put down 10% (19,900), I would be paying 804 for monthly payment. As I have mentioned before, since i will be renting the rooms out for people, I am thinking about charging approximately 800~1,000 per room. 

3 beds x 900 (per person on average) = aprrox 2,700 income. 

2,700 x 0.10 = 270 will be saved separately every month for maintenance in the house

2,700 - 270 - 804 - 200 (emergency fee) = 1,426 (remainder)

If what I have explained so far makes sense, would it be wise for me to take this plan into action?

I apologize in advance if my explanation is vague! Please help me by sharing your experience and knowledge!

Hello BiggerPockets Community!

My name is Jin and I have recently joined BiggerPockets in order to find out whether my initial interest in real estate will prove to be my life time career. I was never exposed to the world of real estate before, thus, I am here to seek help and advice from people who have went through experience in real estate.

I am very excited to be part of this community and learn much more about real estate that I never knew before!