Cost-Effective Entry:Buying a duplex often requires a lower down payment compared to purchasing a multifamily property (5+).

Hi All, We recently purchased a duplex we're planning on house hacking-- we're going to live in one unit and rent out the other. 

I purchased four installment payment contracts on contracts for deed.

I looked into starting out with turnkey properties…just to get familiar with the process…but eventually would like to do Multifamily.

Choosing to rent to an unqualified tenant due to early move-in has resulted in nonpayment of rent and going through the eviction process which I will make a future post about. 

That ensures you don't spend it on other things and know exactly how much you have to spend on the next purchase.

Mortgage, Taxes, Insurance, HOA: $3040.37Estimated rent: $2475Total Expenses: $3660.12Vacancy (5%): $123.75Repairs (5%): $123.75Capital Expenditures: $100Property Management (11%): $272.25Information when I bought the house in 2022, new constructions Purchase Price: $373000Purchase Closing costs: $4662Current home value: 400k-420kCash Flow: $2475-$3660.12= -$1185.12; -$71107.2 at 5 yearsCash on Cash Return on Investment (CoCROI): 0%Appretiation per year (6%); $535,290.23 at 5 yearsEquity: Loan value $345,089.53 at 5 years; $190,200.47 in equity at 5 yearsLoan Value today 6/2024: $368,201.59Total ROI in 5 years= (Total profit/Total Invested capital)/ Time (in years); Total profit: $190,200.47Total Invested: $71107.2 (neg cash flow) + $42757 (closing sale costs)= $113,864.20Total ROI (5 years)= ROI 67%, annualized ROI 10.8%My biggest concern is that I am relying solely on appreciation and assuming will appreciate at 6% per year. 

Purchase price: $240,000 Cash invested: $10,000 Working on getting this first "OFFICIAL" deal under my belt.

There should be a person that is a direct contact that you have been in touch with along the process to make sure you finish out the project and that you check in with on the property rehab.

Purchase price: $78,000 Cash invested: $22,000 My first real estate investment was a slow remote BRRRR.