You can use owner occupied financing to purchase up to a 4plex. You can use 1. FHA 3.5% down 2. VA 0% down 3. Fannie 5% down 4. Freddie Mac home possible 3% down
Depends..I started with a 5 plex and never looked back! Even in a down market, if your units have upside in rents, your value will increase, so you don't have to wait for the market to recover to scale!
Awesome Journey! I will be purchasing commercial real estate next year. By having commercial license(s) and listening to your channel has inspired me. ❤
What Abdul did in his market was great!!! California is a very expensive market. So when Abdul made his purchase, he also acquired equity going in. He executed one of the most important fundamentals in real estate, which is purchase in a good neighborhood or an up and coming neighborhood. It's very "similar" to forced appreciation. Because he purchased in a high value market like California in a good neighborhood, he's benefiting from the value. Excellent job, Abdul. Lesson to all its about the "VALUE.
Congrats Abdul. Keep at it and buy more property. Congrats Peter for working closely with Abdul and making his purchase a success. Mentorship is so important to succeed and Peter and his company are great at it. If I started today, I'd like to start with a 5-Plex, but would accept any of the deals that were the best at the time of purchase. The important thing is to get started. Cheers.
You should address the passive activity loss rules which often prevent real estate investors from using real estate investment losses to offset income from other sources such as earned income.
I'm surprised there's no mention of owner occupancy. An FHA loan that is usually the three and a half percent rate as this person gets requires owner occupancy but this isn't mentioned at all for some unknown reason.
If you don’t have money and need to have a lower down payment you should go with a 4 plex but you have to live in one unit to maximize the benefit. I would go with a 5 plex if you can get the financing though
From what I see around here, you’ll be upside down with today’s interest rates and the current rental rates, and it’s worse the less you’re putting down. You’d have to be able to carry the monthly negative for a year until you can bring rents up and even then you’re still maybe going to break even, still not including the management fee if you need to outsource that. What am I not seeing? I’m in SoCal and I don’t see any property that is going to nearly double in 18mos, not at today’s rates, like this example you’ve shown with Abdul.
Use a mortgage calculator and set it to be a 25 year Am and an interest rate of 8% as a starting point. Your rate could be lower (based on the property, the down payment and your financials) and it's possible to get a 30 year Am but not always. As far as how much, go to LoopNet and look up small multifamily listings to get an idea of the cost.
Every successful multifamily investor has a mentor. Get your mentor here: www.commercialpropertyadvisors.com/protege-program
You can use owner occupied financing to purchase up to a 4plex.
You can use
1. FHA 3.5% down
2. VA 0% down
3. Fannie 5% down
4. Freddie Mac home possible 3% down
Depends..I started with a 5 plex and never looked back!
Even in a down market, if your units have upside in rents, your value will increase, so you don't have to wait for the market to recover to scale!
Awesome Journey! I will be purchasing commercial real estate next year. By having commercial license(s) and listening to your channel has inspired me. ❤
What Abdul did in his market was great!!! California is a very expensive market. So when Abdul made his purchase, he also acquired equity going in. He executed one of the most important fundamentals in real estate, which is purchase in a good neighborhood or an up and coming neighborhood. It's very "similar" to forced appreciation. Because he purchased in a high value market like California in a good neighborhood, he's benefiting from the value. Excellent job, Abdul. Lesson to all its about the "VALUE.
I would go 4 Plez because it can be purchased as a single family property using a lower all in cost which saves money 💰
Loved the practical tips on loans, profits, and property value.
Congratulations Abdul!
Looking forward to getting started real soon.
Congrats Abdul. Keep at it and buy more property. Congrats Peter for working closely with Abdul and making his purchase a success. Mentorship is so important to succeed and Peter and his company are great at it. If I started today, I'd like to start with a 5-Plex, but would accept any of the deals that were the best at the time of purchase. The important thing is to get started. Cheers.
Congratulations Abdul.🎉🎉
Great job, Abdul 🏌🏾
Abdul, you're a flipping genius, sir 👏🏾
Wow that’s awesome congratulations Abdul keep up the great work
Depends, appreciate the insight
Thank you. I am educated. We Prosper!
You're welcome!
Great job Abdul. Wish you well going forward. You are in the game. Can’t score if you are not in the game.
I would start with a 5 plex but I would start with whatever is the best deal at the time.
Congrats Abdul. I am very inspired by your closing remarks. Mr. Peter I definitely prefer 5 plex.
I think I’d prefer the 4 plex!
Just get started 4🎉
Adul congrats keep going!!!!😊. Start with a 5 Plex Peter
Well Done.
5-plex and greater ✨️
I would purchase which ever has the better deal. Preferably 5 because it’s considered commercial real estate.
How do you get a 10% DP on a non owner occupied 4 unit? Everyone I’ve called wants 25% down.
Abdul, is a very very smart guy. Good luck on your large deal.
4 or the Best Deal.
I say 4 to use the fha? If not 5 all day go commercial.. this isprrior to ⌚️ I add my after
5-8
5
Congratulations Abdul
I would start with a the best deal that made sense as per your advice says to .
Best of luck!
Can you make a video on how you would set up for LLC/corp structure when starting out.
I would start with a 4-plex
Responding to the poll. If I were a beginner, I would start with the 4 plex.
4
I think a 5 plex
You should address the passive activity loss rules which often prevent real estate investors from using real estate investment losses to offset income from other sources such as earned income.
This video, 3 Tax Advantages of Commercial Real Estate, touches on that subject: ruclips.net/video/wRoifYqQ9y8/видео.html
I would star with the 4 plex since it is cheaper to get financed from the banks
5 units
I'm surprised there's no mention of owner occupancy. An FHA loan that is usually the three and a half percent rate as this person gets requires owner occupancy but this isn't mentioned at all for some unknown reason.
If you don’t have money and need to have a lower down payment you should go with a 4 plex but you have to live in one unit to maximize the benefit. I would go with a 5 plex if you can get the financing though
4 plex
Four plex.
Congratulations
5 plex I have a 5 plex and I couldn't be happier
Small Retail Center
From what I see around here, you’ll be upside down with today’s interest rates and the current rental rates, and it’s worse the less you’re putting down. You’d have to be able to carry the monthly negative for a year until you can bring rents up and even then you’re still maybe going to break even, still not including the management fee if you need to outsource that. What am I not seeing? I’m in SoCal and I don’t see any property that is going to nearly double in 18mos, not at today’s rates, like this example you’ve shown with Abdul.
Hi, I'm in South Florida, looking to start the process. What will be the monthly mortgage payment for a 4 or 5 unit around here?
Use a mortgage calculator and set it to be a 25 year Am and an interest rate of 8% as a starting point. Your rate could be lower (based on the property, the down payment and your financials) and it's possible to get a 30 year Am but not always. As far as how much, go to LoopNet and look up small multifamily listings to get an idea of the cost.
🖐
😢4
I would start with a 4 plex I would like to get into house hacking
🖐🖐🖐✌
… a 50 to 100
I would buy 5 plex
5
4
5
5
5
5
5
4
4
4