Newbie With 200K: How Would You Start
Any suggestions would be greatly appreciated. Have access to 200K in cash and looking to start either buying two families or possibly an apartment complex or even get into the rebab market. In Upsate NY where average house prices are in the 150K. Have a handyman that is reliable and willing to work for me as well. Any suggestions on how to start would be be helpful
Go commercial ... financial independence expedited, not get rich quick ... but expedited! Go to varying sites, too include this one that offer such properties for sale.
Web search, commercial properties should lead you in the right direction!
Someone has to have some insight?
Anyone?
There has to be someone that can knock my original questions out of the park.
How about you CommercialKing, can you shed some light?
You are accurate though. Four units qualifies for a standard loan where as 5+ require a commercial loan. I have a friend that jumped into the 12+ units and had a LOT of vacancies. He found that his tenants were typically wanting to move into a duplex (more room, feels more like a home) so he had a fairly high turnover. Make sure you check out the occupancy for four-plex, duplex and 12+ in your area.
Quote:
1) Is it true that lenders will often do a deal on a 4-plex with 10% down.
I am a mortgage broker in Oregon. Yes, you can get 90% financing on a 4-plex. You can even get up to 100% financing if you qualify. I have never personally helped someone get a 100% 4-plex loan, but I work with lenders who do it.
Hey broker Steven,
Would you loan 90% on a 4-plex to a 23 year old kid from Portland with little credit history (None negative) if I could show you that the numbers work?
Just trying to see where I stand.
Thanks Forrest. I was planning on spending 2yrs learning this market before investing (1yr if I were planning on something small). Narrowing down where I want to spend my time has been my aim (e.g. #units, area within portland, price range, etc.). This was my first post, and was clearly labeled "newbie." I was simply looking for information and viewed this site as on par to visiting a bookstore, nothing more. And yes, I have since found many sources of information, including cap rates.
I do believe you will need some experience before you get all involved in apartment investing. With the right structure you can get financing for apartments with10% down. The chalenge for you will be no experience in apartment management. The lenders want experence or else you need to hire a management company. Good luck,
Robert
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