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
As a foot in the game, a 4-plex seems good for the beginner, and then he can move up with more experience because this industry needs patience and faith before seeing results as it relies on market trends. Good job, Peter. Your videos are learning keys to my knowledge as I am in the stage of getting into this business.
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.
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.
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.
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.
I have a question on the tax savings here though. Is it Depreciation on Passive or Active Income? I always thought that since Long Term Residential Rental Income was considered Passive Income and so I thought that home depreciation only applies against passive income?
Great question! Depreciation is only a deduction against passive income unless you are recognized as a real estate professional; and then it is deducted against your active income too. This video explains: ruclips.net/video/tsiVsq78qO0/видео.html
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.
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
As a foot in the game, a 4-plex seems good for the beginner, and then he can move up with more experience because this industry needs patience and faith before seeing results as it relies on market trends. Good job, Peter. Your videos are learning keys to my knowledge as I am in the stage of getting into this business.
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 purchase which ever has the better deal. Preferably 5 because it’s considered commercial real estate.
I would start with a 5 plex but I would start with whatever is the best deal at the time.
Adul congrats keep going!!!!😊. Start with a 5 Plex Peter
Loved the practical tips on loans, profits, and property value.
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
Wow that’s awesome congratulations Abdul keep up the great work
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.
Looking forward to getting started real soon.
How do you get a 10% DP on a non owner occupied 4 unit? Everyone I’ve called wants 25% down.
Abdul, you're a flipping genius, sir 👏🏾
I would go 4 Plez because it can be purchased as a single family property using a lower all in cost which saves money 💰
Can you make a video on how you would set up for LLC/corp structure when starting out.
Great job Abdul. Wish you well going forward. You are in the game. Can’t score if you are not in the game.
5-plex and greater ✨️
4 or the Best Deal.
I think I’d prefer the 4 plex!
Depends, appreciate the insight
Just get started 4🎉
Congrats Abdul. I am very inspired by your closing remarks. Mr. Peter I definitely prefer 5 plex.
Thank you. I am educated. We Prosper!
You're welcome!
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.
Congratulations Abdul
I would start with a the best deal that made sense as per your advice says to .
Best of luck!
I have a question on the tax savings here though. Is it Depreciation on Passive or Active Income? I always thought that since Long Term Residential Rental Income was considered Passive Income and so I thought that home depreciation only applies against passive income?
Great question! Depreciation is only a deduction against passive income unless you are recognized as a real estate professional; and then it is deducted against your active income too. This video explains: ruclips.net/video/tsiVsq78qO0/видео.html
Responding to the poll. If I were a beginner, I would start with the 4 plex.
Congratulations!!! What a great achievement!
congratulations Abdul many blessings to you.
Congratulations Abdul.🎉🎉
Likely start with a 5 Plex, take advantage of forced appreciation, cash flow.
Abdul, is a very very smart guy. Good luck on your large deal.
Why can't you force appreciation on any asset if rents rise?
I say 4 to use the fha? If not 5 all day go commercial.. this isprrior to ⌚️ I add my after
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.
Congratulations Abdul!
5-8
I would start with a 4-plex
Great job, Abdul 🏌🏾
I would star with the 4 plex since it is cheaper to get financed from the banks
Well Done.
Inspired Abdul. Thank you
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
5 units
I think a 5 plex
4 plex
4
Four plex.
5 Plex... Because I'm interested in commercial props
5 Plex, however details matter.
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.
5 plex I have a 5 plex and I couldn't be happier
Small Retail Center
5 units +
5+
3 + 4 +
5k per unit for renovation. What exactly is he doing. My reno cost me 15k
😢4
🖐
I would start with a 4 plex I would like to get into house hacking
… a 50 to 100
🖐🖐🖐✌
Congratulations
I would buy 5 plex
4
5
5
5
4
5
4
5
4
5
5
5
5
5