All Forum Posts by: Tony Iacovone

I have been reading up on wholesaling, and it seems like a viable option to start my RE career.

Since I live in a small state, I was wondering if it may be too saturated with other wholesalers.

What are your thoughts on this? There are only so many deals in such a small state.

Also, is the key to wholesaling finding off market properties? Most investors would see all of the properties listed on MLS.

Hello,

I just finished reading a book called "Millionaire by 28" by Todd Babbitt. The author achieved this feat by buying up 50 small condos located in the downtown area of DC. Although he didn't achieve great cash flow from these properties, he built equity in each of them and collectively sold them at a later time.

What do you guys think of this strategy? I understand the "boom" was a big reason for his profits, but what about condos in general? He specifically mentions not to invest in suburban condos, only ones that have excellent locations.

As an investor starting out, the low prices of condos do intrigue me. For the price of one 3 family, I could buy multiple condos in the $50-$60G range.

What do you guys think? Is it even possible to achieve positive cash flow from condos?

Any insight is appeciated.

Thank you for the advice guys. I guess 4plex is the way to go. Although finding time to make repairs to all four units may be tough without a property manager.

@JD Ruiz Did you end up purchasing the 4plex? What price range was it?

Also, if anyone has any other insight on this I'd appreciate it.

Hello,

I've been reading on this forum for a while now, and plan on making my first real estate investment by the end of this year.

I plan on using FHA.

Upon analyzing a few deals (primarily duplexes) I have noticed that by owner occupying one side, it is extremely difficult to get positive cash flow. Is this common? Or am I just not finding good enough deals?

Also, I read on the FHA website that I am required to pay additional premiums (1.75%)?

Example:

$119K duplex

3.5% down-4,200 (rounded)

monthly payment with insurance and taxes-$922+ $300 (Premiums)=$1242

Rent one side out for $900=$342 loss

Renter pays his utilities, I pay $200 a month for mine =$542 loss. Am I missing anything?

I understand I would be cutting my rent in half by buying this property, but living by myself isn't necessary right now. (still in school)

I have about 8-9K to invest, and am questioning as to whether I should look at triplexes or even 4 family homes instead of duplexes. That way, I net some cash flow while living in the property.

Would love to hear everyone's thoughts on this. I understand the question is a bit broad, just looking for some general advice.

My name is Tony I, and I am 19 years old. I am looking to purchase my first property within the next year or two.

From reading other discussions on the site, it seems like a three family home is great way to start. Live rent free, and collect cash flow.

The thing that worries me though, is what if things go wrong with the property? I would lose the cash flow because of repairs. Also, I am still in school, so I have limited time to assist tenants if they have problems. Could I hire a property manager for this?

Lastly, besides rent, what other expenses are associated with a multi-family home?

I am sorry for all of the questions, and I understand I have a lot to learn before I start investing. If you guys could point me to any helpful resources I should read (besides the beginner's book) that would be awesome.

Thank you!