![a-triplex-house[1].jpg](https://i.imgur.com/HUcE6lW.jpg "a-triplex-house[1].jpg")
I have the opportunity to buy a triplex in another state for the cost of a condo where I live. This would be a great opportunity to become fiscally independent but honestly I don't know the first thing about such ventures.
What are the mistakes to avoid?
Do you have the down payment of are you doing FHA
>>1011280
The seller is an acquaintance who is willing to wait. I don't have a down payment at the moment. I've looked into FHA loans for the state so I know what to expect for a down and closing costs. I do plan to either have myself or my mother live in one of the units while renting out the other two.
In the meantime I'm working on my debt to income ratio, having 3 months mortgage available in liquidity, and saving for the down+closing.
How's the location? You plan on renting it out?
Better vet/scout the FUCK out of that place and look at the kind of growth in the area, demographics, crime, etc.
>>1011326
What should I be looking for in terms of location, area growth and demographics? What can I do to vet the property properly? Is there a list I can consult?
As I said before, I do plan to either have myself or my mother live in one of the units while renting out the other two.
>>1011342
There's probably a service that can do all that for you and save you the time. I don't know much about real estate.
You know the old aphorism though m8- if it sounds too good to be true it usually is. Just make sure you know what you're getting into and don't buy this because your uncle jim is selling it or something. Do your homework is all I can say.
>>1011342
Getting an investment property is different than buying a home for yourself. The FHA loans don't apply to investment properties (or 2nd homes)
Need at least 20% down + closing costs (which is a total whore on investment properties). Could be up to 10k in additional costs
Mortgage banker
>>1011350
Even if you or your mother lives in it, still considered investment property. We ask those things and look at where your job is located because assholes pull mortgage fraud way more often than you'd think
>>1011350
From what I've read the FHA does allow owner occupied multi-unit housing. I'd be willing to move.
>>1011359
Can only do a duplex if you move in on that kind of FHA loan. But that does give more flexibility because I think you can get monthly income with proposed rent which would be 75% of average rent for that unit in the area. And you'd need a job Nearby with an offer letter stating how much you'd make starting within 30 days. If you're <60 miles away from your job you can just keep it and say you're commuting. Think you need 5% down.
>>1011359
Or you can get the home on the duplex fha loan and then just move again so you can rent both. Just don't tell me that when you're trying to get a loan approval
>>1011283
If you want FHA, YOU have to live in the property for one full year. Aside from down payment and income, that is the only other real hurdle. So you'll only be able to rent two of the units for the first year.
You'll want to have the house checked out by property inspectors to avoid surprises. Don't trust the acquaintance's word that everything is good. This will save you a LOT of money.
For rental agreements, you can find them online.
I wanted to own rental property, but I am a wage slave and my 20k still wasn't enough to buy the property I wanted in addition to my pathetic hourly pay.
If I were to do it, I would require the renter to sign a 2 year lease or at least a year and a half. Any good tenant worth the effort will have no problem with this. You can have them pay for the background/credit check as well, usually a 30 dollar cost depending on your state. This will save you from acquiring a horrible tenant most of the time, though people with good credit and no record can still ruin your home, it is less likely.
Another note, fourplex is the biggest size you can have as an owner occupant and still qualify for FHA. Anything bigger is considered investment property.
Thank you everyone. I'm currently a wage slave myself but with some hard work and a little luck I think I can make it out.
Please keep the advice coming!
city-data.com
you're gonna want to really run the numbers on several properties, and have someone else run the numbers on the top ones you want to own. Dreamovision is a thing.
You're looking for a double digit cap rate
Demographic and location advise posted here is huge. Also two other things:
1- understand motivations of seller to sell then assess. Are the units all currently rented? When are leases up? Building need repairs?
2- building inspection - just want to emphasize this.
3 - being aware that being a landlord is not an investment in the traditional passive sense, you're buying a part time job.
>>1011278
Is that a picture of it? They usually have HOAs equivalent to a cheap apartment, and are incredibly unsustainable outside of Florida, because the next generation of adults aren't interested in living in artificial neighborhoods. There's a reason most buyers are 40+/
>>1011283
Why the hell does he want to sell?
I did something similar. 4 unit apartment building out of state. It was impossible to manage without living nearby.
Sold it and broke even.
