Is buying 4-units actually a good idea? How much should I be looking to spend? How old should they be?
Any advice on this in general?
Seems to good to be true overall.
>drop 30k on downpayment
>get decent tenants
>use rent to pay mortgage
>get asset for "free" in 10 years
Sure, it's not the return of stocks, but seems like it might be aight...minus constantly looking for tenants, them breaking shit, water lines failing, etc.
>>1162810
it's better deal if you live in one of the units for a few years while renting others out
also are you handy or do you have a good network where you know good repair guys?
Also... if you want to hold for 10+ years, but a well built 4 unit like the one in the pic.
It could be an incredibly expensive venture
Risk management cunt
also all depends on your interest rate
vs asset / equity and if u where to sell up would u get out okay b4 doing anything this autistic like u may have a tenant he pay rent ebery fucking week for a year but when he leaves the rooms fucked needs all sorts of new shit installed so on so forth would u still have made enough money to cover the cost/interest
If the tenants stop paying rent then you still have to pay the mortgage and it might take a year to get them evicted.
>>1162810
College towns, baby! Make kids' rich parents pay for their rooms. Apartments in my city are like $500 a month, but minimum $700 by the University. Also a lot better than renting out to scuzballs.
>>1163035
Oh, I'll add that it can be a bit of a risk, if you don't have tenants, but if you're doing it in a college area, you won't be able to keep an ad on Zillow/Trulia/Craigslist/whatever for more than a week, trust me. Hardest part is finding tenants that pay. It's easier to wait a day or two for a tenant that you're confident will pay on time than trying to hound a less reliable tenant each month.
Also, get out of the mortgage as fast as you can.
Maybe think twice about renting to the more melanin-covered clientele.
>>1162967
A year, what state/country you live in. Unless there are some perilous conditions to which they stop paying because of inadequate accomodations or some shit I'm pretty sure tennants can be swiftly booted within a couple of months after no rent payment.
>>1163046
6 months, a year, does it really make a difference?
Either way you are fucked
Take that 30k and buy into MNKD. Hold till April 5th. Then you can spend 80k-90k on that instead of 30k. You're welcome.
Hopefully you're at least somewhat handy and can repair problems without paying some else to.
>>1163064
i heard about people who do this all the time
they put down two months ahead then won't pay any rent or utilities when they get evicted they overall saved 80% of rent money.
there is only one thing you can do and it is illegal break in when they are not at home throw all their stuff out and replace the locks or move in some friends.
What about buying run down 4plexes in the ghetto, doing bare minimum to get it up to code as cheap and quickly as possible or whatever, then go full section 8 on it?
Any money to be made doing that?
Or I guess, how does section 8 work? Do you get guaranteed money from the government or do you have to deal with the tenants?
Like all real estate deals, a 4plex could either be great or terrible, it all depends on the details and numbers. Where is it at? What's the purchase price vs rent? Is it in a good area? Who's your management company?
Without details, I can't give any answers
any Real Estate Lads wanna help R8 this deal? 109k for a lil ranch which I will live in after graduation with a FHA loan, and rent out a 3 bedroom for like 975/month. Are my numbers wacky?
>>1164536
Anyone have experience with FHA loans? Could I get one with a 650 Credit score and a job lined up/good degree and like 10k cash?
>>1164547
>650 Credit score
wtf
>>1164563
I am about to graduate, have 5.5k student loans, and just got a credit card with no history. It should be higher once I start using my credit card.
>>1164576
I think you want to shoot for at least 720. At that point you are no longer penalized when taking a mortgage.
>>1162810
>Seems to good to be true overall.
Buying a rental property is like buying yourself a job.
You gotta deal with:
>Repairs
>Maintenance
>Filling vacant units
>Tenant complaints
>Evictions
>City inspections
These things are a problem even in the best managed units with good tenants.
I make tripple when i airnbnb my spare room and its better than having a roomate you have to hustle for money
>>1164547
where are you finding a duplex at that price where a 1k sqft rents for $975/mo?
also its from 1880, assume maintenance is higher. zoned r-3, I dont think that allows for a duplex, so make sure it is legal.
>>1164714
but where are you located?
If you're handy, go for it
the most money is to be made in fixing up shitholes that you're able to buy for cheap
>>1164536
FHA has to be owner occupied
>>1162810
>30k down payment
God I envy you fuckers. 30k in MA isn't even the down payment to buy one unit.
>>1163046
Actually in some places there are like squatter rights or something along those lines. I've recently been looking for apartments and a realtor lady told me she was so behind on updating the place because a woman was living in a garden unit for seven months without paying rent. She had to pay for the tenant's electricity and heating out of her own pocket for the entire time.
>>1164384
Section 8 requires inspections and after you do that once you will probably have a worthless property.
