| Buying an Apartment Building |
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royalao
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 11 Nov 2012
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| Buying an Apartment Building |
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Hey everyone! This is my first post here.
I'm 18 years old and have managed to save $10,000. I have 2 credit cards as of now and only use them once a month for small purchases. I'll probably have to move out in the next year and a half. I'm in school to become a jr accountant I just started this fall and wont finish school til June 2014. My question is when the time comes should I buy a 3 family apartment building and live on one floor and rent out the other 2 floors? If I get a building I want it to be about $175,000. I used some calculators and found that with a 10% dp the monthly cost would be around $1002. Each floor would have 3 br & could rent for about $650 each around here and that would be cheap rent which would be $1300/m & I was thinking I could get more prospective tenants if I allowed pets because nowhere around here allows pets. Also at the moment I make low income of about $800 a month but wouldn't mind getting a second job when I finish school.
If I shouldn't get the building I'd be renting from someone else for about $400-$500 a month for a single br. I'd rather pay towards my own building than help pay someone else mortgage.
Also What should i do with my money NOW?
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Sun Nov 11, 2012 1:10 am |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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That could be a pretty good plan. I'm a landlord - over the past 3 or 4 years, lenders have been requiring about 20% for a dp. But the rest of your numbers are about right - you'll have property tax and insurance - but your $1000/mon will be about right.
As for pets - you should charge extra rent for them - to cover wear & tear on floors/door frames/drapes. They tear up a few things, it will cost extra to claen/repaior for the next tenant so you wnay t= get compensated for those extra costs.
Your credit score is probably good - ie, you have two cc's, you have the ability to save $10,000, and you can hold a steady job - all good points in the eye of a lender who will be loaning you $175,000. You might want to plan for about 3 to 4 years - that will give you time to graduate, get your 'real' job, and be able to show a year work history. Plus it gives you time to add to the $10,000.
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Sun Nov 11, 2012 2:28 am |
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rockymountain
Contributing Member
Cash: $ 6.40
Posts: 25
Joined: 11 Sep 2012
Location: USA
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| Re: Buying an Apartment Building |
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It depends upon you what you want to do with your money because every person has it own thinking where to invest or sell property
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Fri Dec 28, 2012 6:26 am |
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calculatepage13
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 29 Dec 2012
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our credit score is probably good - ie, you have two cc's, you have the ability to save $10,000, and you can hold a steady job - all good points in the eye of a lender who will be loaning you $175,000. You might want to plan for about 3 to 4 years - that will give you time to graduate, get your 'real' job, and be able to show a year work history.
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Sat Dec 29, 2012 1:00 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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calculate - do you have anything to add? Or did you simply want to repeat my comment above?? 
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Sat Dec 29, 2012 3:25 pm |
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