I am 24 years old and I am 3 years into my career as a Network Admin. I have spotless credit and have a small but good amount of money saved up.
What I am interested in is a 3 flat building. Can someone please tell me if I am spinning my wheels with this idea? Is it way more work than it is worth? What are some hidden start up costs? Is it so much work that I would have to quit my current job?
I am very interested in real estate and think this might be a good way to start. I really want to make some money from it but I will also value the experience. Any suggestions or comments are welcome. Thank you in advance to everyone for your help!
2006-12-14 07:01:43 · 4 answers · asked by Tom C 1 in Business & Finance ➔ Renting & Real Estate
Also, is there like a website or something where I can find these type of buildings for sale?
2006-12-14 07:34:28 · update #1
It sounds on the face of it like a good idea. Just remember that once you are the owner you are responsible for things like heat and plumbing. Make sure you always have enough credit and funds for, say, a new roof. You also have to pay taxes and insurance. If you have all these things checked before you buy, you should be OK.
As for tenants, check them thoroughly. They aren't friends. Don't fall into that trap. Check credit. Check employment and references. It's a business, run it like a business.
This could be a good beginning to a new side of your life.
Make sure you get the foundation and other important structural features of the building inspected.
2006-12-14 07:27:08 · answer #1 · answered by Susan M 7 · 0⤊ 0⤋
I started buying properties at 25, back then my first house was 65k (I am 44)- my buddies thought I was crazy, as time went on I purchased more as my income increased. Don't listen to anyone just keep buying, your age will overcome economic cylces. The obvious difference is the prices are so high in todays markets, when I bought apartments it was normal to buy them at $50,000 a door (California) today it is more like 200-240 a day in Ca. and in places like newport beach it is more like 600k a door, tough to flow any money at these prices. I say build your own, or buy an apartment and do a condo conversion, and hope and pray they sell!!..
2006-12-14 14:15:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
More than 4 Units puts you in the commercial range. It takes 4 units at least to generate a cash flow depending on your debt. Look into "Owner occupied" properties and talk to a Buyer Agent and a banker as well as other landlords.
Good Luck
2006-12-14 09:10:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Since the property is more than 2 units, you will have to get a commercial loan and not the standard mortgage.
With commercial loans, the lender will want 20% downpayment.
2006-12-14 08:03:04 · answer #4 · answered by AJ 7 · 0⤊ 1⤋