/biz/ - Business & Finance

[Anonymous No.54823153]

I am on track to have about $50k in savings by the end of the year.
I make $150k and have a credit score of ~800.

My current plan is to get an FHA loan for ~$1M and buy a duplex/triplex/fourplex in whatever non-dead city I can find one in that seems semi appealing (hopefully in Florida) and rent out all of the rooms except the one I live in, as long as the potential rental income is about even to the mortgage+PMI+interes+maintenance and start building a real estate portfolio.

Is there any reason why this is a stupid idea or any things I might not be considering here?

[Anonymous No.54823175]

>>>/t/witter micro blogger
nobody cares what yOu do

[Anonymous No.54823214]

>>54823175
I didn't ask you to care about me I asked you to tell me if I'm retarded

[Anonymous No.54823229]

>>54823153
FHA loans are capped at like $500k.

[Anonymous No.54823232]

>>54823214
I didn't read your post beyon
>I

[Anonymous No.54823268]

>>54823229
Nevermind that's for first time home buyers.

[Anonymous No.54823288]

>>54823229
I was unaware of this thank you.

Looks like it's by state/county and number of units tho
>PINELLAS
>One Unit: $ 472,030
>Two Units: $ 604,400
>Three Units: $ 730,525
>Four Units: $ 907,900

[Anonymous No.54824296]

That's it? No one thinks this is a retarded idea for some reason?

[Anonymous No.54824692]

Chicago has an abundance of this housing type, you're looking for a 2-3 flat. In an 80+% white, safe neighborhood (yes they exist) you're looking at about 800k-1m for a turnkey 3 flat. I'm actually in the market for one right now.

In this market you have two options:

1. buy in an established neighborhood
>higher buy-in
>larger pool of potential renters
>likely higher-quality tenants
>less likelihood of crime
>less appreciation upside

2. buy in a gentrifying neighborhood
>lower chance of high-quality tenants
>higher rental yield
>higher appreciation potential
>higher likelihood of crime


This one is a pretty good deal
>4 units, all large
>great neighborhood
>potential short-term rental option for at least one unit
>easy transit access
>VERY rental-heavy neighborhood
>80% white or higher zip code

[Anonymous No.54824925]

>>54824692
Any gotchas I should know about?

Other than
>implying property management is easy
>implying renters always pay rent
>muh upkeep
>retarded California tenant laws

[Anonymous No.54824970]

>>54824925
the tenant laws are retarded in illinois too. So make sure to rent to young professionals, hence why my properties are all in lakeview
>completely unaware of tenant rights
>plenty of disposable income
>frequently subsidized by boomer parents
>always pay on time
>rarely ever cause damage, and when they do they generally fix it
>don't mind waiting for fixes (or the fixes' quality) because that's life in le big city

[Anonymous No.54824999]

>>54824925
Also, I see you're looking at Pinellas county. I am originally from Tampa (it is actually cheaper to live in chicago than in my hometown, combination of lower COL + lower transportation cost + higher pay), hence why I choose to live here.

I fear the Tampa market is just about played out, and the bubble will start to deflate soon. I would hold out if I were you

[Anonymous No.54825053]

>>54823153
use the BRRR model
buy a shitty house, fix it up equity, rent it out then take equity out, repeat.

BUY RENOVATE RENT REPEAT.

[Anonymous No.54825184]

>>54825053
Someone has tiny pockets

[Anonymous No.54825603]

>>54823153
I plan to buy a house here in the US which I will live in for one year and then rent out after I get an Eastern European fiancee.

[Anonymous No.54826308]

>>54825603
This is my plan too but I want a mostly white Argentinian girl.

[Anonymous No.54826349]

>>54824999
Another Tampa fag nice. I want out of here bad.

[Anonymous No.54826425]

>>54826349
Why is that? I'm moving there this weekend.

After living in NY, CA and NC, none of which I particularly liked I figured if I'm not going to fit in anyways I may as well be surrounded by attractive people with tans and goals and no income tax.

[Anonymous No.54826452]

>>54826349
Why? I’m trying to get the fuck out of Minneapolis and move down to Tampa or St Pete.

[Anonymous No.54826453]

>>54825053
This and look up house hacking. Check out bigger pockets, just be aware a RE drop in price is coming across the board. Good luck fren, you will make it!

[Anonymous No.54826497]

>>54826308
Like this one

[Anonymous No.54826607]

>>54823153
Do you think you can just collect rent without any care? Owning and maintaining a house is so fucking expensive and annoying. New roof, ac broken, water leaking, I mean the list goes on

[Anonymous No.54826617]

>>54826453
>house hacking
Please tell me this actually means something beyond a shitty Facebook/TikTok tier normie finance meme

[Anonymous No.54826655]

>>54826425
>>54826452
To many people coming down and I’m sick of the fucking beaners speaking Spanish in my ear when I go outside.

[Anonymous No.54826665]

>>54826607
>Do you think you can just collect rent without any care?
Yes I will pretend to be Jewish

>Owning and maintaining a house is so fucking expensive and annoying.
It's only expensive if the net return is bad. It doesn't matter how much it costs if the gainz are there. And as far as annoying, having a project to keep me busy that makes money instead of losing money like all my other hobbies sounds fun.

>New roof, ac broken, water leaking, I mean the list goes on
I'm very handy and can do all the simple shit myself, but again, even a new roof is cheap if you're bringing in enough from rent and building equity faster than you're losing it, right?

[Anonymous No.54826677]

>>54823232
kys

[Anonymous No.54826691]

>>54826655
>sick of the fucking beaners speaking Spanish in my ear when I go outside.
Oh. Do I have to worry about that in this area?

[Anonymous No.54826743]

>>54826691
Yes. They all like to go to that area to get scraps from the rich/ work. The only places that are kinda okay is like Davis island but it’s all kikes.

[Anonymous No.54826762]

>>54826743
What about St. Petersburg? Specifically the section near the bridges to Tampa.

[Anonymous No.54826773]

>>54826691
If you wanna be free from it move more north then travel in for work. It’s cheaper and won’t see much of anyone but whites when you do.

[Anonymous No.54826792]

>>54826762
St pete is the same shit man go more north and travel in to Tampa for work/ fun. That whole area loos nice from google images but it’s filled with shit skins.

[Anonymous No.54826825]

>>54826773
>then travel in for work
I work from home.

I decided to move here because easy living in the countryside of NC has made me complacent and low energy and I need to be around people with drive to leech off them if I want to keep rising higher in life, but I'm not at NYC/LA/Miami level yet. Did I fuck up?

[Anonymous No.54826854]

>>54826825
It’s not the type of drive you’re thinking about. Most of anything that’s happening is construction related. The social life is not what you think because it’s Tampa. It’s like a knock off of a city that has stuff going on but it’s half assed kinda. You jumped in the pool id say experience it for a bit then get out.

[Anonymous No.54827123]

>>54823153
I just got a FHA loan and read that you can not rent out the property until after you have lived in it for at least 12 months. FHA loan is intended to promote home ownership not to be some slumlord jew.

[Anonymous No.54827172]

>>54823153
Here's my analysis of risk here:
1. Finding tenants. Depends on location; do your research well to make sure there is demand for housing.
2. Dealing with tenants. I assume you won't be hiring someone to do the dirty work when you have to evict a nigger, clean cigarette smoke, or fix leaks. Be mentally prepared and physically prepared with tools.
3. Profitability. Do math to figure out whether with loan interest to make sure that you'll be actually earning money and factor in random costs.
Not an awful idea but it takes effort. Also spend time vetting your tenants.

[Anonymous No.54827748]

>>54823153
> as long as the potential rental income is about even to the mortgage+PMI+interes+maintenance
Have you done the math on this? 4 units bringing in $2k/month is like $100k, minus $20k prop tax, $20k insurance, $10k maintenance, and you have $50k left over, so 5% cap rate which isn't bad. But if you're financing at 6%, you're losing money (and that doesn't count occupancy rate, your time, and other miscellaneous expenses). If you have a job and can float the difference, it's not a terrible idea to start building your portfolio, but you should be really picky about getting a good deal so it at least cash flows on paper.

[Anonymous No.54828513]

>>54827748
>Have you done the math on this?
I haven't been looking at actual properties or tried getting approved yet so I don't have any math to do, but my thinking is yeah if I can float a couple percent, I'm still stacking equity I can pivot into some other thing later.

>>54827172
This is pretty much what I expected.
I've also heard about setting up a corporation or whatever to lease to the tenants through so that they don't even know I'm their landlord if I'm living in the same building. I guess I won't know if that's worth it until I experience it tho.