Purchase price: $850,000 Cash invested: $140,000 Sale price: $1,476,500 Source: Cold Call12 unit multi familyPurchase: $850kLoan 1$250k 1st position loan (down payment to seller)2 yr balloon,12% interest onlyLoan 2$600k 2nd position seller finance3yr balloon, 0% interest, 30 yr am, 8 month deferred paymentsThree 4 unit buildings.

Many people in your position consider speaking with potential partners and co-signers.The co-op/condo market offers more options within your price range.

We use a YTDpaystub and last year’s W-2(s) to calculate income several different ways:Hourly or salary income calculated to a monthly amountYTD income divided by number of YTD monthsYTD + W-2(s) income divided by the corresponding number of monthsIf these numbers vary too much, then we investigate and require an acceptable Letter of Explanation.Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment to make surethey’ll always be able to pay the rent on time.

If your college major will result in a high paying W2 job, that puts you in a much better position in a few years. 

I know this is an intro forum but if anyone feels so inclined, would love some different perspectives, what would you do if you were in my position.The lure of a good salary, benefits and insurance are hard to walk away from.

Hi Devin,It's great to see such positive feedback—congratulations on building a strong reputation in the community!

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The LP's could possibly step into the GP position, but would that help?

Building positive relationships with tenants can increase their retention and reduce turnover, promoting consistent rental income.Consider FHA loans with lower down payment requirements if you're starting with limited capital.

That's the position I'm in right now.