All Forum Posts by: Wayne B.

Hi Henry,

Thank you so much for your reply. Would a fourplex be double the headache to manage and double the cost of upkeep and repairs than a duplex? Or even though it’s twice as big, it doesn’t really work that way?

I’ve never lived in a townhouse. One of the attractions for me of a single-family home is the extra space for storage, such as a 2-car garage or storage shed in the backyard. Do duplexes or fourplexes have a garage for one’s car, or usually just a Carport? Do they have front or back yards and a storage area? Perhaps I would need to rent a storage space elsewhere? That’s extra money right there. It looks like to make this work; I may need to downsize big time!

I appreciate your cautionary note about running the numbers in a realistic manner, so I’m not left holding the bag.

Hi Kristina,

Thank you so much for extending a helping hand. It was great to receive such a quick reply to my first post. I really appreciate the specifics you provided to my situation. I have to admit that I will need to go over your tips a few more times to absorb it all. In reference to your opening lines, currently I don’t have any dogs or a spouse, although I look forward to having both soon, so I guess I have the flexibility you speak of.

I didn't realize that an FHA loan would allow me to purchase a 4-unit building and that I could do it with my current budget of $65K. Wow! You mean I could hit the ground running? Sounds intriguing. You're getting me to open my field of vision and reach for something out of my comfort zone, something bigger. Those numbers you provided are fascinating. Of course, I would then have to put off for a while (the dream of) buying and living in a single-family house, which is part of the sacrifice I need to make if I want to start generating cash flow from rentals to invest into more properties. I've lived in apartments all my life – sharing walls, ceilings, and floors with sometimes noisy neighbors. I thought I was done with that, but I guess not. The fourplex is a lot more financial risk than just one house for me for $230,000.

I’ll have to make sure it’s in a growth area where those units will always have tenants, which becomes a higher priority than my own comfort of living in an area I may like. I don’t understand something: Since in January I was approved for only up to a $350,000 30-year fixed conventional mortgage loan at 4% interest, isn’t it unlikely that I would be approved for a $809,150 loan? That’s a much bigger amount, hence bigger risk to the bank, right? I’ll need to spend a little more time figuring out your last part about cost segregation and accelerating depreciation for tax savings.

I notice you live in the Tampa area. I’ve never been there, but plan to visit and scout it out in late October. Would you say Hillsborough County has more job growth and stability than Volusia County, hence a safer bet for fourplex occupancy and tenant stability? I realize that Volusia County is near Orlando, with Disney as the big job draw, but if Tampa has a lot of Tech companies, is that better for my purposes?

I was glad to see that you’re familiar with Kiyosaki’s book. You probably understood a lot more of it than I did. By the way, what types of properties do you own? Do you and your husband manage the properties yourselves, or do you hire a property management company to do it for you?

You’ve given me some tools to work with and gotten me started on a path with some direction. I’m still scared, but more hopeful. Thank you!

Wayne

Hello All,

I’m totally new to real estate and I would greatly appreciate some direction. I would like to know how to buy a home that I can realistically afford, ideally in Central Florida – either Volusia County (North of Orlando) or Pasco County (North of Tampa). I’m also open to living and buying elsewhere. Firstly, I’m interested in purchasing a home to live in, and secondly, investing in single-family and/or multifamily rental properties with long-term tenants. 

In late January, I spent a week in Central Florida (Volusia County) looking for a property. I was pre-approved for a 30-year fixed loan. I looked at several homes in what I thought was my price range but did not make a purchase and returned to California discouraged. My original plan was to buy a move-in-ready 3 BD, 2 BA, 2 Car garage, 1,500 sq ft house in the $280,000 range, but I later found that to be unrealistic. Due to the doubled interest rates since then and my taking a closer look at my budget, it now seems that I will have to downgrade to a first home of a 2 BD, 1 BA, 1 Car garage, 1,100 sq ft in the $230,00 range, which will probably require me to be more flexible as far as the area to buy in. I have $65,000 to invest as a down payment and closing costs for a home. I have zero debt, an excellent credit score, and a stable W-2 job in Civil Service.

A few months ago, I read Robert Kiyosaki’s ‘Rich Dad, Poor Dad’. In addition to enjoying Mr. Kiyosaki’s wonderful storytelling, I learned several important things about finances, real estate, taxes, and mental attitude. There was much that went over my head, so I plan to read it again. Immediately after reading the book, I discovered Bigger Pockets and have now decided that real estate investment is the most practical and realistic vehicle for me to achieve financial independence. For now, my goal is to earn an additional $2,000 a month of passive income (after expenses) within 3-5 years from now, in addition to my regular income. Even though ‘house hacking’ makes sense financially, I’m not sure I could handle it, as I’ve lived alone for many years.

I plan to visit Central Florida again in late October to look at homes. To be honest, I’m terrified of taking the first step and seem to be full of excuses. I just signed up for Bigger Pockets Pro Membership, but am not certain how to proceed. I’d really like to have a mentor to guide me and keep me accountable, which would greatly increase the probability of success. I would very much appreciate any advice that you can offer. ​

Would like to attend the next meetup in the Bay Area. Please keep me posted. Thank you.

Wayne